SMMT identifies £4.6bn automotive manufacturing opportunity
The Society of Motor Manufacturers and Traders (SMMT) says automotive manufacturing could add £4.6bn to the UK economy by the end of the decade.
It has identified an 80% rise in demand for UK-sourced parts and described this as a once-in-a-generation opportunity for investors.
Growth is being driven by the emergence of electric vehicles and the development of new technologies, and the SMMT believes the UK’s advanced automotive manufacturing base is well-placed to capitalise on burgeoning demand.
Vehicle production is expected to return to 1.3 million units by 2035, with electric vehicle volumes anticipated to more than double by 2028.
As such, demand for electric motors, power electronics and drive systems is set to surge by more than 350% by the end of the decade, while automotive electronics demand is expected to more than double. There is also potential for increased battery-related production, with demand predicted to triple by 2030.
Opportunities
Mike Hawes, SMMT chief executive, said: “The UK automotive sector is transforming at pace, and for companies looking to invest in Britain the opportunities are clear. We have the skills, the innovation and the industrial base built on the billions already invested into Britian by global brands.
“With a modern, long term industrial strategy – with automotive at its heart – the UK is a safe and stable destination for automotive investment amidst fierce global competition, increasing protectionism and geopolitical upheaval.”
