Automotive

SMMT shows EV production has fallen

29th July 2024
Caitlin Gittins
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Figures from the Society of Motor Manufacturers and Traders (SMMT) have reflected a dip in both conventional UK car production as manufacturers switch to electric models and electric vehicle production, which is down 7.6% and now represents 37.8% of total output. 

The SMMT have told the new Labour government support in the form of packages to make the electric vehicle (EV) switch more attractive for consumers are needed.

Existing hurdles for consumers in adopting electric vehicles include affordability, accessibility, reliability - as some consumers have charging anxiety over how long an EV can be driven for on a fully-charged battery - and charging infrastructure. Some companies are seeking to address this, as earlier this month Acrospire announced launching evpzee focused on making EV charging accessible.

"Entering the EV charging market was a natural progression for us," said Tim Barker, Managing Director of Acrospire and Director at evpzee. "Our extensive experience in addressing customer pain points, coupled with our proficiency in delivering turnkey solutions, positions evpzee as a game-changer in the industry."

An initial ban on petrol and diesel cars for 2030 was moved back by the Conservative government to 2035 as then-Prime Minister Rishi Sunak said the 2030 ban would impose costs on “hard-pressed British families”. 

“The backsliding to 2035 by the previous government has been terrible for the EV infrastructure industry," said Dunstan Power, Director of Versinetic. "The EV industry as a whole loses out by delaying in bringing new models and technology to market whilst other nations march on. It’s right to restore the challenging goal to allow Britain to become one of the world leaders in this space, rather than playing catch-up. This may require some incentives to maintain the pace. ”

The Labour government has pledged to restore the ban back to its initial 2030 target. However, there is some concern about the EV market stalling as the average cost of an EV is approximately £38,000. The 37.8% total output of EV production is unchanged from last year, according to the SMMT. 

“The new government’s commitments to gigafactories, a decarbonised energy supply and a faster planning system will help boost our competitiveness and sustain employment in a sector that delivers well paid, skilled jobs nationwide,” said Mike Hawes, Chief Executive at the time of announcement. “Amid fierce global competition, however, industry and government must work quickly to deliver those commitments, creating an industrial strategy that enables the growth the economy craves.”

In Labour’s strategy for electric vehicles, in October 2023 then-Shadow Secretary of State for Business and Industrial Strategy, Jonathan Reynolds commented: “A Labour government would drive the automotive industry into the future by accelerating domestic battery making capacity, investing in gigafactories, and removing planning barriers to get shovels in the ground. We will inspire consumer confidence and demand by fixing charging infrastructure and developing clear battery standards consumers can understand.”

When the election results were announced on the 5th July, the statement from Hawes said: “The industry is fundamental to the achievement of net zero which, with the right conditions, will deliver the growth the economy needs. We now look to continue our productive partnership with [the] government to ensure the long-term success of the sector and all those who depend on it for their mobility, services and livelihoods.”

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