英国汽车协会-2030年宣言：实现零排放的汽车增长

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MANIFESTO2030:

AUTOMOTIVEGROWTHFORAZEROEMISSIONFUTURE

Supportedby:

June2023

2THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

INTRODUCTION

MikeHawes,ChiefExecutive

TheSocietyofMotorManufacturersandTraders(SMMT)

ACRITICALDECADEFORUKAUTOMOTIVETRANSFORMATION,ANOPPORTUNITYFORTHENEXTGOVERNMENT

UKAutomotiveplaysacriticalroleintheeconomyandsociety

–keepingBritainonthemove.Weareamajorcontributortothenation’seconomicwellbeing,investinginanddevelopingtechnologiestoadvancezeroemissionmobility,andprovidingwell-paidskilledjobsinbusinessesandtheirsupply-chainsinallregionsacrosstheUK.Society,communitiesandindividualswouldbeleftintheslowlanewithoutthebenefitsautomotivebringstodayandwillcontinuetobringinthefuture.

Butweareatacriticalmoment.

Automotivemustcarrythegreatestburdenofthedecarbonisationoftransport.Weneedtomeetacceleratedgovernmentmandatedzeroemissionvehicletargetsfrom2024andendofsaledatesforspecifictechnologiesin2030and2035.Wemustdothiswhiletakingconsumers(andvoters)onthisjourney–deliveringaffordable,sustainablemobilitysolutionsandcreatinghighpaid,rewardingjobsandeconomicvaluefortheUK.

Whicheverpartyformsthenextgovernment,thenextparliamentwillbecriticaltoachievingtheUK’snetzerotargetsandthelong-termfutureoftheUK’sautomotivesectorinthetransitiontozeroemissionvehicles.

AllpartiesandallstakeholdersmustmakebindingcommitmentstoensuretheUKcontinuestothriveandprosperinafuturedrivenbygreenindustryandcleantechnologies.Automotiveisattheheartofthis.

Thenextgovernmentmustrecognisethestrategicimportance

ofautomotivetotheUKeconomy,maintainitsdiversityand

strongheritage,anditsstrengthsasagloballeaderinadvanced

manufacturingandtechnology.Allpartiesshouldcommitto

fivekeypledges:

01AGreenAutomotiveTransformationStrategy

forastrongereconomy

02

NetZeromobilityforeveryone

03

Greenskillsforagreenerfuture

04

MadeinBritain–Madefortheworld

05PoweringtheUKcleantechrevolution

Finally,wecallonallpartiestoenshrineourshared2030vision:

TodevelopaUKautomotiveecosystemfittodeliverazeroemission

future.Anecosystemwhichdeliversahealthymarketandvibrant

domesticproductionfootprint,foundedonaresilientsupplychain

successfullyevolvedtomeetcurrentandfuturetechnological

needsforazeroemissionfuture.Anecosystemwhichdeliversthe

affordability,mobilityandchargingsolutionsforeveryone.

Onlytogethercanweachievesuccess.

CONTENTS:

02Introduction

03UKAutomotive:Aproductionpowerhousewithaglobalreputation

04SummaryPledgeCard

AcriticaldecadeforUKautomotivetransformation:

05AGreenAutomotive

TransformationStrategyforastrongereconomy

07NetZeromobilityforeveryone

08Greenskillsforagreenerfuture

11MadeinBritain/Madefortheworld

13PoweringtheUKcleantechrevolution

CaseStudies:

15JLR

16ToyotaMotorManufacturing(UK)

17HydrogenVehicleSystems(HVS)

18Halfords

19LKQEuroCarParts

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THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

ECONOMIC

£34

billion

JOBSAND

2.2

14%

UKAUTOMOTIVE:

APRODUCTIONPOWERHOUSEWITHAGLOBALREPUTATION

Drivingtheeconomyandprovidingmobilitysolutionsforall–frompassengertocommercialvehicles–withahugeopportunityfordeliveringgrowthandprosperityinthenetzeroeconomy.

UKAUTOMOTIVE

IMPACT

£16billioninGVAtotheUKeconomy,wearehometoeverythingfromOEMsandsupplychaintopotentialunicornsandhighvaluestart-ups

WearetheUK’slargestsourceofexportsformanufacturedgoods

Morethan180companiesalreadyinvolvedinproducingcomponentsforelectricvehicles

UKhasEurope’ssecondlargestcarandvanmarkets–ahealthydomesticmarketisseenaskeydriverofinwardinvestment

VEHICLEOUTPUTANDEXPORTS

70+vehiclemodelsbuiltinBritainby25+manufacturingbrands

Batteryelectricvehicles,hybrid,hydrogen,andfuelcelltechnologies.

UKmanufacturingisdiverseincluding:Car,van,taxi,bus,coach,trucks&HGV

1

3

Electrifiedvehiclescomprisemorethanathirdofallcarproduction

£24

billion

FinishedvehiclesareamongBritain’smostvaluableexports,deliveringrevenueof£24billion,£10billionofwhichwasforelectrifiedvehicles

80%

80%ofthevehiclesproducedintheUKareexported,morethanhalftotheEU

THEPRIZE

risefrom74,000toover750,000electricvehiclecarandvanproduction

Ifsuccessful,by2030UKAutomotive

couldbesetfor:

10X

worth

£106

BILLION

betweennowand2030

withfurthergrowthopportunitiesinsupplychain,aftermarketandheavydutyvehicles

SOCIETY

Foreveryjobinoursector,another2.2jobsaresupportedinadjacentsectorswhobenefitfromastrongUKautomotiveindustry

208,000peopleemployeddirectlyinautomotiverelatedmanufacturing

800,000acrossthewiderautomotiveindustry

Automotivemanufacturingwagesthatare14%higherthantheUKaverage.

SUPPLYCHAIN

ANDAFTERMARKET

EverypartoftheUKisinvolvedinelectricvehicleorcomponentmanufacturing

25%

EVsupplychaingrowingbymorethan25%inthepastfiveyears

TheUKautomotivemanufacturingsupplychaincurrentlyemploys134,000people

Morethan2,500automotive-specificcompanies

£29

billion

Totalturnoverof£29billionforsupplychain

£51

Totalturnoverforaftermarket

billion

FIVEAUTOMOTIVEPLEDGESFORTHENEXTGOVERNMENT

PLEDGE1

PLEDGE2

PLEDGE3

PLEDGE4

PLEDGE5

AGREENAUTOMOTIVE

NETZEROMOBILITY

GREENSKILLSFOR

MADEINBRITAIN

POWERINGTHE

TRANSFORMATION

FOREVERYONE

AGREENERFUTURE

–MADEFORTHEWORLD

UKCLEANTECH

STRATEGYFORA

REVOLUTION

STRONGERECONOMY

POLICYACTION

PublishaGreenAutomotiveTransformationStrategythatsuperchargesUKAutomotivetoachieveNetZero.Astrategywhichenablesinnovation,attractsinvestmentandsecuresmanufacturingofcleantechnologiesintheUKtodelivereconomicgrowthandzeroemissionmobility.

POLICYACTION

FosterareliableandaffordableUK-widerechargingandrefuellingnetworkthroughbindingtargetscomplementedbyamotortaxandregulatorysystemthatensuresnooneisleftbehindinthetransitionto

NetZero.

POLICYACTION

Offertheskillsworkerswantbycreatingaone-stop-shopnationalupskillingplatform,anddevelopthefuturetalentbusinessneeds,combinedwithgreaterSTEMeducationinschoolsandadynamicimmigrationsystemthatattractsglobaltalent.

POLICYACTION

PositionautomotiveandadvancedmanufacturingsupplychainsatthecoreofUKtradepolicyandmarketaccess.Secureaccesstoglobalmarketsfortariff-freeexportofBritish-madevehicles,batteriesandgreentechnologies,anddeliverexportsupportservicesthatallowbusinessesofallsizestosucceed.

POLICYACTION

EnsureNetZero-criticalindustriessuchasautomotiveareabletoaccessaffordableandinternationallycost-competitivezeroemissionenergytopowerthecleantechrevolution.Dedicatedenergyandinvestmentmeasuresshouldbeavailabletomakezeroemissionvehicleproductionanduseareality.

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4THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

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THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

PLEDGE1:

AGREENAUTOMOTIVETRANSFORMATIONSTRATEGYFORASTRONGERECONOMY

POLICYACTION

PublishaGreenAutomotiveTransformationStrategythatsuperchargesUKAutomotivetoachieveNetZero.Astrategywhichenablesinnovation,attractsinvestmentandsecuresmanufacturingofcleantechnologiesintheUKtodelivereconomicgrowthandzeroemissionmobility.

RECOMMENDATIONS

→Anall-party,cross-Whitehalltransformationstrategy

thatinspiresconfidenceintheUK,superchargesUKcompetitivenessanddeliversonour2030vision

→Astrategywhich:

–isholisticandcomprehensive,coveringvolumeandspecialistvehicleengineeringandmanufacturingtosupplychainsandcriticalinputmaterials

–de-risksprivatecapitalinvestmentandreflectstheevolvinginternationallandscapetodeliveralevelplayingfieldonwhichtocompetewithkeymarketsandtradingpartners

–maintainsourworldclassinnovationecosystem–

fromacademiaandinstitutions–andcriticalprogrammesfromtheAutomotiveTransformationFundtoR&Dtaxcredit,scale-upandcommercialisationregimes

–isdynamic,responsiveandestablishesbestpractice

–utilisesalltheUK’savailablepolicy,fiscalandregulatorylevers

–isdevelopedandchampionedinpartnershipbygovernmentandindustry

TRANSFORMATION:PLEDGE1

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THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

KEYDATA

UKAutomotivecontributes

£16

billion

inGVA

£78

billion

turnover

fromautomanufacturingannually

Morethan

£11billion

2011

hasbeencommittedtoUKelectricvehicleproductionand

gigafactoriesbetween2011and2022,withbillionsmore

investedgloballytobringnewtechnologytomarket

Theautomotivesectortypicallyinvestsmorethan

£3

billion

inresearch&developmentannuallyandboasts22dedicatedR&Dcentresacrossthecountry

TheUnitedStateshasputforwardmorethan

$2trillion

intheraceforNetZeroacrossgrantsandloansforcleantech,includingautomotiveandenergy,infrastructureandsemiconductors,withtheEUrespondinginkind

2022

BACKGROUND

Adiverseeconomyisastrongeconomy.Advancedmanufacturingisafundamentalcomponentandmajorcontributortothe

UKeconomywithautomotiveadding£16billionGVAlastyear,andvitaltoachievingNetZeroby2050.TheUKautomotivesectoroperatesinahighlycompetitive,globalenvironmentandhasbeenhugelysuccessful,historicallyattractingsignificantinwardinvestment.Thatpositionisnowunderthreat.

Fromtechnologicaltransformationtochangingtraderules,

fromclimateambitionstozeroemissionmobility,weneedaclear,unambiguousindustrialstrategydedicatedtoautomotiveandadvancedmanufacturing.Governmentsincompetitormarketsareofferingsizeablesubsidiesandstreamlininginvestmentopportunitiesandbureaucracytoenticemobilecapitalfromwithintheglobalindustry.Tocompete,wemustbedynamic,harnessingacross-departmentalstrategythatde-risksprivatecapital,acceleratespermissionsandseizesopportunities,thatregulateswithbothbusinessandconsumerneedsatpaceandwithpurpose.

TheUKneedstooutlineagenerousmedium-termincentiveandsubsidyprogrammeandco-investmentvehicles

(similartosovereignfunds)thatiseasilyaccessibletobusinessanddeployedatpace.Thisshouldincludegrantsandtaxbreakstoencouragethelocalisationandscalingof,inparticular,abatteryvaluechainandpromoteacirculareconomy.Fundingshouldbeprioritisedforhigh-valueorstrategicactivitiessuchasmineralsprocessing,cellmanufacturing,batteryreuseandremanufacturing,materialsrecoveryandrecycling,electricdriveunitmanufacturingandfuelcellproductiontopositiontheUKthroughtheremainderofthedecadeforabright,zeroemissionfuture.

TheUKcanactasaregulatoryleaderandinnovatorintheageofzeroemissionvehicles.Certaintyanddirectionoftravelarehugelyinvaluableinhighlyregulatedsectorssuchasautomotive.RegulatoryroadmapsdevelopedacrosskeygovernmentdepartmentsfromTransport,toBusiness&Trade,andEnvironmenttoguidethefutureofholisticUKautomotiveregulationwould

TRANSFORMATION:PLEDGE1

helptocreateaframeworkthatboostsbusinessconfidenceandresilienceinoursector.Simplifyingredtapeorfasttrackingappropriateapprovalprocessesforcapitalprojects–suchasbatteryproductionormaterialsrefiningfacilities,onshoreandoffshorewindfarms,solarfarms,energystorage,electrolysers,andcarboncaptureandstorage,andautomaticallygrantingpermitsfordefinedgreenprojects(likesolarorwind)thatmeetspecifictechnicalcriteriaiftherearenoobjectionstotheapplicationwithintwomonthscould,forexample,halvethedevelopmenttimeforgreenprojectswithoutcompromisingenvironmentalandsocialconsiderations.

MaintainingourworldclassinnovationecosystemfromR&D,start-upandscale-uppathwaysandlinkingacademia,

businessandpolicymakerswillkeeptheindustryattheforefrontofthetechnologicalrevolution.Thenextgovernmentshouldprotectthesecompetitiveadvantageswithlongtermfundingandthesupportinginstitutionalestablishments,includingtheUKBatteryIndustrialisationCentre,FaradayInstitution,HighValueManufacturingCatapultandtheAdvancedPropulsionCentre.

Thiswillactasabeacontoinvestorsandconsumersalike,

aidinglocalisationofkeyproductionandsupportinganchorvehiclemanufacturersaroundwhichanactiveandhealthysupplychaincanco-locateandco-exist.Thefundamentalsofoursectorarestrong,despiterecentheadwinds.TheUKisopenandprimedforNetZeroby2050.UKAutomotivecanandmustbeattheforefrontofthisgreentransformation.

DE-RISKPRIVATECAPITAL

Updateoutdatedregulation

andplanningrequirements

tobeappropriateforthe

electricvehicleage

Reduceredtapeandfast-

trackapprovalsforbattery

productionandrenewable

energyprojects

Supportclean-techstart-ups

Speedupgreentechnology

projectfunding

Decoupleelectricityprices

andrenewablesfromgas

Source:RacetoZero,

smmt.co.uk/wp-content/uploads/sites/2/SMMT-Race-to-Zero-report.pdf

Partnerwithmineral-richnations

PromoteBritishinvestmentincriticalmaterialmining

Providebestpossibletradeconditionsforremanufacturing

andsubsidies

Competitiveenergycosts

Supportrenewableand

andscale-ups

Greentechco-investment

Upskilltheworkforce

GLOBALDIPLOMACY

Expandandenhance

AGREENAUTOMOTIVETRANSFORMATIONSTRATEGY-EVSUPPLYCHAINFOCUS

Moregenerousincentives

decarbonisationprojects

freetradeagreements

REGULATORYREFORM

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THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

PLEDGE2:

NETZEROMOBILITY

FOREVERYONE

POLICYACTION

FosterareliableandaffordableUK-widerechargingandrefuellingnetworkthroughbindingtargetscomplementedbyamotortaxandregulatorysystemthatensuresnooneisleftbehindinthetransitionto

NetZero.

RECOMMENDATIONS

→Ensureeveryonehasa‘righttocharge’bymandatingdelivery

ofpublicchargingandrefuellinginfrastructurethroughbindingtargets,leadingtoasignificantupliftandreliabilityofalltypesofpublicchargersacrossthewholeUK.

→Committoaninfrastructurestrategywhichenablestherollout

andfundingofcommercialandheavydutynetworkstosupportthemovementofgoodsandpeopleacrossthecountry.

→Maintainappropriateincentivesandgrants,particularlyfor

commercialandfreightvehicles,tosupportthedevelopment,adoption,andtotalcostofownershipofzeroemissionvehiclesandattractzeroemissionproductstotheUKmarket.

→Ensureafairsystemofmotortaxationanddutiesthat

encouragetheswitchtozeroemissionandprovideslongtermcertaintyandaffordabilitytoconsumers.

NETZERO:PLEDGE2

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BACKGROUND

Successfuldecarbonisationcanonlybeachievedifnooneisleftbehind.Foreveryonetobenefit,weneedareliableinfrastructurenetworkplustaxationandregulatoryframeworksthatpreserveprosperity,equityandenhancechoicewhereverdriversmayliveorwork.Thiswillrequireallstakeholderstoplayarole.Withazeroemissionvehiclemandatefrom2024to2030,greaterandfasterinvestmentininfrastructureandmoreincentivestoencouragepurchaseareessentialtodriveconsumerconfidenceandaccelerateuptake.

Ouroutlookremainspositive.Withtherightregulatoryframework,therightflexibilitiesandtherightsupportmechanisms,theUKautomotiveindustrycandeliverasuccessfulandcompetitiveZEVtransition.,however,thisiscontingentonthekeyassumption

thatcharginginfrastructureisnolongerabarriertomassmarketuptake.Leftentirelytomarketforces,therolloutofchargepointswillriskprioritisingcommercialratherthanconsumerinterests,withmoreprofitabletypesofchargersandhigh-utilisationlocationsdominatingandtheequitableprovisionofpublicchargersbecomingincreasinglyinadequate,inequitableanddisproportionateasEVuptakeaccelerates.

Unlockingthefullenvironmentalandsocioeconomicbenefitsofthistransitionrequirescollaborationinvolvingindustry,governmentandkeysectors,includinginfrastructureandenergyproviders.Creditshouldbegiventogovernment,localauthoritiesandchargingsectorforthegrowthininfrastructuresince2011.However,myriadstudiesandconsumersurveyshaveinvariablyandconsistentlyshownthatinadequateinfrastructureprovisionisstillamajorconcernformanyconsumers–andisamainbarriertomassuptake.Rangeanxietyhasbeenreplacedbycharginganxiety.

Thenextgovernmentmustputconsumerinterestsfirstineveryaspectofcharginginfrastructuredevelopmentandexpansionwiththreekeyprinciplesinmind:adequacy,experienceandequity.Wemustchallengeallstakeholderstomakechargingaseasyas,ifnoteasierthan,conventionalrefuelling.Nosocioeconomicgroupsorcommunities,particularlythoseinruralareasorreliantonon-streetresidentialcharging,shouldbedisadvantagedorleftbehind.Publicchargingmustalsobeaffordablesothatconsumersarenot’penalised‘inthepocketfornothavingaprivatedrivewayoraccesstoadedicatedhomecharger.

Wealsorecognisetheneedtodevelopthefuturemotortaxationroadmapasthetransitiontozeroemissionvehicleschangestheobligationsondrivers.Thismustbecarefullycraftedasconsumersmaketheshifttonewtechnologies,allowingthemtomakeaninformedchoiceandhavegreaterunderstandingoftheirtotalcostofownershipandfinancialobligations.Anythingthatcouldactasadeterrenttothosewhoaremaking,orconsideringmaking,thetransitiontozeroemissionvehicleswhenthereisalreadyastep-changeincostcomparedwiththesamecombustionenginevehicleequivalentshouldbecarefullyconsideredandwellpublicised.

Today,consumersfaceadoublehitoncostaspurchaseincentivesforprivatebuyersintheUKhavebeensystematicallyreducedandremovedinthelasttwoyears,makingtheUKoneofthefewmarketsaroundtheworldtohavenodirectconsumerincentives–whileothermajormarketsstillmaintainorareintroducingtheminbothnewandusedmarkets.Acomprehensivereviewofmotoringtaxesandzeroemissionincentivesisrequiredtoprovidelonger-termconsumerconfidenceandtosupportmassmarketuptakeandfleetrenewal.

Foreveryonetobenefit,weneedareliableinfrastructurenetworkplustaxationandregulatoryframeworksthatpreserveprosperity,equityandenhancechoicewhereverdriversmayliveorwork

NETZERO:PLEDGE2

KEYDATA

Governmentwillphaseoutnewsalesof:

Pureinternalcombustionengine

carsandlightvansby2030

Othernon-zeroemission

technologiesby2035

Non-zeroemissionheavyvehicles

(>26t)by2040

Carregistrationsforbatteryelectric(267,000)

andplug-inhybrid(101,000)represented22.9%ofthe

marketin2022.In2024figuresareforecasttobe:

145,000

PHEV

TheUKistargetingbetween300,000and700,000publicchargersby2030

2023

40,000

2030

700,000

withjustover40,000availableinMay2023.Bycomparison,Germanyistargeting1millionby2030.

444,000

BEV

2030

2035

2040

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THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

PLEDGE3:

GREENSKILLSFOR

AGREENERFUTURE

POLICYACTION

Offertheskillsworkerswantbycreatingaone-stop-shopnationalupskillingplatform,anddevelopthefuturetalentbusinessneeds,combinedwithgreaterSTEMeducationinschoolsandadynamicimmigrationsystemthatattractsglobaltalent.

RECOMMENDATIONS

→EnableaNetZeroautomotiveworkforcethatdevelopsfuture

domestictalent,retainsandupskillstheexistingworkforce,andcontinuestoattractglobaltalentandexpertise.

→Championthedeliveryofalong-term,onlineNationalUpskilling

Platformforautomotiveandadvancedmanufacturing.

–Identifyandacceleratethegrowthofelectrificationanddigitalupskillingwhichwillprovideinsightintoskillsopportunitiesandlinkemployers’needstoappropriatemodulartrainingprovision.

–Createcentralisedgovernancestructuresandtrusted,government-backedbranding.

→Supportworkforceupskillingthroughthereformofthe

ApprenticeshipLevy,allowingaproportionofunspentLevyfundstobefocusedonprioritytrainingareassuchaselectrification,decarbonisationanddigitalisation.

→ContinuetoelevateSTEMinfurthereducationand

promoteautomotiveandmanufacturingaslife-longcareeropportunities,contributingpositivelytogreengrowth.

→Regularlyreviewskilledvisaroutesandshortageoccupation

liststoreflectbusinessneedsastechnologyevolvesatpacetoattractinternationaltalenttotheoverallbenefitUKindustry.

GREENSKILLS:PLEDGE3

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THESOCIETYOFMOTORMANUFACTURERSANDTRADERS

KEYDATA

Automotiveemploysmorethan:

208k

directly

800k

widersupply

chain

Everyjobinthesectorcreatesanother2.2jobsinsectorsfromchemicalsandsteeltofinanceandadvertising

Automotivemanufacturingannualsalariesaretypically

14%higherthantheaverageacrossallUKemployment

andthecombinednationalsalarycontributionof

automotivemanufacturingamountstoover

£6billion

Therearemorethan3,000

apprenticeshipsemployed

byvehiclemanufacturersand

Tier1suppliers

TheFaradayInstitutionindicatesathrivingindustrycouldprovideemploymentfor170,000inEVmanufacturing,

35,000

ingigafactories

by2040

65,000

inthebatterysupplychain

BACKGROUND

Automotivecreatesahighlyskilled,highwageworkforceacrosstheUKfromtheproductionfloorthroughdesignandengineeringtotheexecutiveofficesacrosseveryregionintheUK.Morethan208,000peoplearedirectlyemployedwithmorethan800,000inthewiderautomotivesectorincludingretail.Abroadrangeofotherindustriesrelyonautomotive,suchasrawmaterialsandchemicalproducersthatmakeupparts,componentsandvehicles,inturnprovidingmobilityandlogisticswhichpowerthewholeeconomy–fromfooddeliveriestotheschoolrun.TheendofsaleoftraditionalinternalcombustionenginevehiclesintheUKby2030meansthatdespiteourworld-renownedmanufacturingforce,thesectormusturgentlyre-establishitselfasanattractiveanddiversesectorinwhichtobuildacareer.Manyexistingworkers,alreadycontributingtoourindustry,willseerolesandopportunitiesevolveinthezeroemissiontransitionandweneednewandemergingskillsatalllevelsandacrossmultiplebusinessareastoday,aswellastosecurethetalentpipelineforthefuture.

Apprenticeshipshavelongplayedakeyroleinourindustryand,asaresult,gettingapprenticetrainingandfundingrightisofutmostimportance.It’swhythesectorhasalwaysbeensocommittedtoemployer-ledapprenticestandardsandcalledforreformstotheApprenticeshipLevy.It’scriticallyimportanttomakesurethatcoursecontentandspendingmatchesbusinessneeds,sothattheindividualsenteringtheindustryandthecompaniesemployingthemareconfidentintheirabilitytobejob-ready.

AnAutomotiveCouncilsurveyatthestartof2023foundthereareapproximately7%productionlabourvacanciesintheautomotivesupplychain,comparedwithaUKnationalaverageofcirca3.4%,withsoaringdemandforemergingskillsrequirementsindigitisation,softwareandelectricalengineering.Thelevelofdigitalisationtoautomotiveproductsishighlycomplexandmanufacturershavespecificskillrequirementsrelatingtosystemsengineering,thedigitalfactoryofthefuture,andsoftwaredesign.Manufacturersalsoneedtoensuretechnicalcompliance,

forexampleincybersecuritycertification,andthattheirtechnicallyskilledworkforcecanreskillfromICEvehiclestoBEVs.

Tomaintainworld-leadinglevelsofproductivityandmeetconsumerdemand,wemustcontinuetoattractinternationaltalentandskilledlabour,anddevelopacriticalmassofdomesticcapabilityandtrainingcapacity,whilerecognisingthatdevelopmentofadomestictalentpipelinewilltakesometime.Wemustalsomoreregularlyreviewshortagestobedynamicinrespondingtorapidlychangingskillsdemandsandbringintheverybesttalentfromaroundtheworld.

TheUK’sretailandaftermarketsectorscontainarangeoforganisations,fromsmallvehiclerepairandserviceworkshopstolargedealershipchains.Theseequallyfaceanurgentneedtomaintainexistinginternalcombustionengineskillsetsforvehicletechnicianswhiletransitioningtonewpowertrains,enablingtheiremployeestoworksafelywithelectricvehiclessothattheseproductscanbeserviced,maintained,andrepaired.

MuchoftheUK’sautomotiveworkforceisalsoemployedbysmallandmedium-sized(SME)companiesthatareexemptfromtheApprenticeshipLevyanddonothavelargefuturetalenttr