The UK automotive industry is engaging in global collaborations to stay competitive and address shared challenges, particularly in innovation and decarbonisation, said Society of Motor Manufacturers and Traders (SMMT) CEO Mike Hawes.
SMMT recently discussed sectoral cooperation with the European Automobile Manufacturers’ Association (ACEA) and other stakeholders, despite the UK’s departure from the EU.
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The association’s latest vehicle registration data indicates a fifth consecutive month of declining demand, a trend mirrored in EU markets.
However, February 2025 saw a surge in battery-electric vehicle (BEV) registrations, which made up a quarter of the total, driven by manufacturer subsidies and impending tax changes.
Hawes said: “In less than a month, many EV models will be subject to the punitive VED [vehicle excise duty] expensive car supplement, adding further pressure to the transition.
“Given even last month’s EV surge fell below the 28% market share mandated this year, we urgently need policies that encourage, not punish, buyers who want to do what government, industry and society’s ambition demands.”
Industry leaders stress the need for robust government policies that support consumer purchases, taxation adjustments, and charging infrastructure expansion to maintain momentum in EV adoption.
Hawes added that the UK’s ambitions in sustainable mobility require fiscal incentives, in line with recent regulatory flexibilities introduced by the EU.
Beyond the European market, UK automotive businesses continue to explore global opportunities.
Last week, SMMT participated in a Department for Business and Trade mission to Turkey, engaging with 12 UK export companies.
Furthermore, the UK will host international delegates at the SMMT Electrified 2025 conference next week.
The event will bring together 400 senior representatives from various sectors, including government, infrastructure, and logistics, to advance discussions on a successful transition to electrification.
