Every UK vehicle manufacturer says Britain is behind its EV targets
Key Points
- Every respondent to the SMMT's 2026 Automotive Business Leaders Survey said the UK is behind its 2030 EV ambition.
- Almost three-quarters said Britain is significantly behind the target.
- The survey represented more than 98% of UK vehicle manufacturing.
- SMMT CEO Mike Hawes said the ZEV Mandate is forcing billions of pounds in manufacturer discounts.
- Business Secretary Peter Kyle backed a timely review of the regulation.
- More than four in five respondents said EU 'Made in Europe' proposals would hit their UK operations.
- Tougher UK-EU rules of origin in six months would trigger tariffs worth £1.4 billion in 2027.
Every respondent to the Society of Motor Manufacturers and Traders’ second Automotive Business Leaders Survey said the UK is behind its 2030 electric vehicle ambition, with almost three-quarters saying it is significantly behind.
The survey represented more than 98% of Britain’s vehicle manufacturing and included the supply chain and wider sector.
The findings were published alongside the SMMT’s latest automotive competitiveness assessment, released one year on from the launch of the UK’s Modern Industrial Strategy.
SMMT Chief Executive Mike Hawes said the Zero Emission Vehicle (ZEV) Mandate was forcing billions of pounds more in manufacturer discounts.
He said the regulation was positioning Britain as an expensive place to sell vehicles and a less attractive destination for global investors, including reinvestment, as the industry transitions to electric vehicles.
The comments followed the SMMT’s annual International Automotive Summit, where Business Secretary Peter Kyle supported a timely review of the regulation.
Kyle acknowledged that getting the transition wrong risked causing “untold damage” for UK automotive. Hawes said losses were already mounting and were being compounded by rising business input costs, particularly energy, which required measures beyond the British Industrial Competitiveness Scheme alone.
The competitiveness assessment recognised progress under the Modern Industrial Strategy, citing DRIVE35, the British Industrial Competitiveness Scheme, new trade agreements, electric vehicle grants and self-driving legislation.
However, the SMMT said delivery must accelerate and policy must align behind growth, investment and competitiveness under the next Prime Minister.
The survey also found that more than four in five respondents said their UK operations would be hit if the EU’s ‘Made in Europe’ proposals proceed unchanged.
The UK and EU are each other’s biggest automotive export markets, sharing trade worth €80 billion annually. Tougher Trade and Cooperation Agreement rules of origin are due to take effect in six months, which the SMMT said would trigger tariffs worth £1.4 billion in 2027 alone.
European carmaker association ACEA published an accompanying position stating the strategic and economic necessity of including the UK in any future ‘Made in Europe’ definition. The position is aligned with the European Association of Automotive Suppliers (CLEPA) and the SMMT.
