The British car industry has warned that it can’t compete with rival nations on EV production unless the UK government provides urgent support.
The call made by the Society of Motor Manufacturers and Traders (SMMT) points to the impact of protectionist trade policies introduced by competing nations, such as the US’s $369 billion (£309bn) Inflation Reduction Act.
Introduced in August 2022, the Inflation Reduction Actoffers manufacturers large subsidies for EVs built in the US: up to $7500 (£6250) for plug-in hybrid and electric cars in which the batteries pass minimum local content requirements through materials mined or at least refined in the US.
For commercial vehicles, this rises to $40,000 (£33,000).