The call from the Society of Motor Manufacturers and Traders (SMMT) follows publication of the trade organisation’s Vision 2035: Ready to Grow report, which predicts millions more drivers switching to zero emission motoring with the right support.
SMMT’s research shows that targeted policies would see the new car market value grow from just over £70bn a year today to almost £80bn every year over the next decade, with over 17 million fossil fuel cars replaced by zero emission vehicles by the end of 2035. Simultaneously, over a million EV cars and vans could be rolling off production lines annually, increasing the sector’s value by five per cent over the current outlook.
The report sets out a cross-party plan to strengthen the market, bolster Britain’s trade, upskill the workforce, provide low-cost, low carbon electricity and deliver an industrial transformation strategy that will transition the UK to a net zero future.
Market modelling shows that halving VAT on new retail EV purchases for just the next three years would add an additional 300,000 new zero emission car registrations on top of the SMMT’s current outlook, putting 2.3 million new zero emission cars on the road during that time.
According to SMMT, this would create a snowball effect for Britain’s net zero transition, accelerating overall EV car uptake over the next decade to over 17 million and delivering £800bn of revenue. Consequently, by 2035, half of all cars in use would be zero emission, bringing about a cumulative drop of 175 MtCO2 in car emissions.
Concurrently, steps to increase the UK’s global competitiveness in light vehicle production would see over nine million zero emission cars and vans roll out of British factories between now and the end of 2035, which would deliver over £290bn in revenue at factory gate prices, an increase of five per cent on the current outlook.
In a statement, Mike Hawes, SMMT chief executive, said: “The UK automotive sector has proved its resilience during recessions and pandemics. Now, it’s ready to grow. With voters preparing to cast their ballots next week, the next government will have the power to unlock the sector’s potential, boosting the economy, creating jobs and cutting carbon.
“The industry’s vision is of green growth and a fair transition for all. Whoever forms the next government, we urge them to create the conditions that will allow us to deliver on our promise.”
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