The UK automotive sector is reinforcing its position on the global stage by fostering strategic collaborations to stay competitive and accelerate innovation in decarbonisation. With a strong focus on electric vehicle (EV) adoption and regulatory alignment, the industry is taking decisive steps to ensure long-term sustainability and growth.
Despite the UK’s exit from the EU, the Society of Motor Manufacturers and Traders (SMMT) continues to engage in high-level discussions with the European Automobile Manufacturers’ Association (ACEA) and other key stakeholders. These collaborations aim to address shared challenges, promote regulatory alignment, and support the transition towards zero-emission mobility.
While recent vehicle registration data highlights a sustained decline in demand over the past five months—a trend also reflected in EU markets—there is an encouraging surge in battery-electric vehicle (BEV) registrations. February 2025 saw BEVs account for a quarter of all new vehicle registrations, driven by manufacturer incentives and impending tax changes. However, the introduction of the Vehicle Excise Duty (VED) expensive car supplement next month could slow this momentum, making policy intervention crucial to sustaining growth in the EV market.
SMMT CEO Mike Hawes emphasised the need for government policies that incentivise rather than penalise EV adoption. With the industry’s 2025 target of 28% market share for BEVs yet to be met, stakeholders are calling for strategic fiscal measures, including taxation adjustments and expanded charging infrastructure. Aligning UK policies with recent regulatory flexibilities introduced by the EU could provide the necessary boost for sustainable mobility.
Beyond Europe, the UK automotive industry is actively exploring global opportunities. A recent trade mission to Turkey, facilitated by the Department for Business and Trade, enabled UK export companies to strengthen international partnerships and expand market reach. Further highlighting the UK’s commitment to electrification, the upcoming SMMT Electrified 2025 conference will convene 400 senior representatives from government, infrastructure, and logistics sectors to accelerate discussions on a successful transition to electric mobility.
With global partnerships, strategic policy advocacy, and an unwavering commitment to sustainability, the UK automotive industry is well-positioned to navigate the evolving landscape and drive long-term growth in the electrification era.
Surface Transforms plc (LON:SCE) is a manufacturer of next-generation carbon-ceramic brake discs for automotive and aircraft applications and has been certified to IS9001-2000 since 2008 and was certified to TS16949 automotive quality accreditation and AS9100C aerospace quality accreditation in 2015.
