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LONDON, Nov 29 (Reuters) – The UK car lobby on Tuesday called on the government to take immediate action to help the industry transition to electric vehicle (EV) production, including investment in higher energy costs, tax reform and charging infrastructure.
The Society of Motor Manufacturers and Traders (SMMT) said the UK auto industry faces “multiple risks” as it moves away from fossil-fuel technology, including “economic instability, trade protectionism, regulatory change, life-threatening, skills shortages”. including shortages and costs. Energy costs are already high, 80% above the EU average.”
Britain’s car industry also faces challenges related to Brexit. Under the original rules agreed with the European Union, starting in 2024, a growing proportion of cars must be made domestically. So Britain is under pressure to build its own EV battery supply chain.
The UK government’s efforts to boost the EV battery industry have only led to a factory project planned by BritishVolt, a startup that has struggled to gain traction with investors.
Without enough battery plants, some fear automakers could quit, hitting an industry that employs about 170,000 people.
It comes as the government under former prime minister Boris Johnson has pushed for a UK ban on new combustion engine models by 2030.
The SMMT said it wants the government’s plan to “ensure competitiveness, attract investment and ensure skills, innovation and long-term growth”.
The lobby group said it should include “broadened support” for energy spending, help for struggling small and medium-sized businesses, tax reform to encourage investment, the creation of a national skills platform and investment to speed up the creation of EV charging infrastructure.
“We need quick and decisive action that addresses the immediate challenges and gives us a fighting chance of winning the global competition,” said Mike Hawes, chief executive of SMMT. “That window of opportunity is open but closing fast.”
Reporting by Nick Carey Editing by Bernadette Baum
Our Standards: The Thomson Reuters Trust Principles.
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