UK Auto Industry Develops 10 Point Plan for Revival and Global Competitiveness

15.07.2025

6 mins to read

UK-Auto-Industry-Develops-10-Point-Plan-for-Revival-and-Global-Competitiveness

The UK automotive industry is on a mission. It aims to reposition itself as a global leader in sustainable and high-tech manufacturing. And it does not seem to be just throwing words to the wind! This time, a comprehensive 10-point strategy was created. If all goes to plan, the strategy is expected to drive £50bn in sectoral growth by 2035. The project developed by the Society of Motor Manufacturers and Traders (SMMT) in close collaboration with the government includes targeted policy interventions, investment incentives, and regulatory reforms. All these efforts to re-establish the UK as a major automotive force.

The timing of the plan (June 2025) is the last resort for the UK, as the country is already in a critical situation. The complex aftershocks of Brexit, ever-growing international competition, and horrendous industrial energy costs make the strategy just what the doctor ordered to bring the British automotive sector back to life. Moreover, the strategy is also a historic opportunity to harness green technologies, support domestic supply chains, and create thousands of jobs. But only if decisive action is taken. Let us explore the details in today’s article.

UK Auto industry develops 10-point plan

Despite the apparent problems, the UK automotive sector, with over £35 billion in annual exports, supporting more than 800,000 jobs, still remains one of the country’s most significant economic contributors. Recent challenging years have brought a decline in vehicle production from 1.5 million in 2016 to just under 1 million in 2023. This stems indirectly from global chip shortages, Brexit-related disruptions, and slow EV infrastructure deployment.

The new plan lays out a 10-point roadmap to reverse these trends. At the heart of the strategy are the most significant areas of improvement:

an increase in annual vehicle production above one million units,
expanded global exports,
a rapid transition to zero-emission mobility.

The UK is also legally bound to commit to achieving net-zero emissions by 2050 and ban the sale of new internal combustion engine vehicles in 2035, which the new strategy aligns with.

The table below presents the 10-Point Plan and the description of the proposed changes:

Pillar	Description
1. Support EV Uptake	Reinstate EV purchase grants, reduce VAT, and provide incentives across vehicle classes.
2. Decarbonise Heavy Vehicles	Ability to meet net zero emission roadmap for HGVs, buses, and coaches.
3. National Charging Infrastructure	Guarantee a “right to charge” and improve access in rural areas.
4. Promote UK Investment	Boost UK’s global appeal for auto and battery manufacturing through targeted campaigns.
5. Lower Industrial Energy Costs	Cut UK energy prices to match global competitors and improve cost parity with the EU.
6. Strengthen Supply Chains	Launch a UK Supply Chain Fund to back battery cells, components, and raw material security.
7. Reform Apprenticeship Levy	Allow flexible use of levy funds for retraining in high-tech automotive sectors.
8. Secure UK-EU Trade	Maintain tariff-free access under the Trade and Cooperation Agreement post-Brexit.
9. Deepen UK-US Partnership	Leverage the Economic Prosperity Framework for trade, R&D and investment in EVs.
10. Embed Auto in FTAs	Prioritise the automotive sector in trade deals with India, ASEAN and Gulf states.

Industrial strategy alignment

The 10-point plan is designed to complement the government’s updated Modern Industrial Strategy from June 2025. According to this strategy a £2.5 billion is devoted to the new Drive35 programme, which accelerates the development and automotive manufacturing of low-carbon transport systems, including electric powertrains and battery technologies.

The British Energy Plan also addresses a critical competitiveness issue: industrial energy costs. The plan introduces a phased 25% reduction in electricity prices for over 7,000 manufacturers by 2027. This constitutes a substantial incentive for energy-intensive sectors such as electric vehicle production and gigafactory operations.

The UK auto industry not only develops a 10-point strategy for growth but also reveals low confidence in global trading conditions.

Opportunities and headwinds

Among the UK’s most prominent advantages are world-leading engineering talent, a strong R&D base, and world-class motorsport innovation. All those feed into global vehicle manufacturing. However, there are also certain threats, downsides and doubts about the ability.

A 2025 SMMT industry survey found that:

73.5% of CEOs cite rising operational costs as a top concern.
47% report declining profit margins due to inflation and supply constraints.
Many firms still struggle to scale domestic battery production, risking dependence on Asian supply chains.

Moreover, the US Inflation Reduction Act (IRA) and the EU’s Green Deal Industrial Plan offer far more aggressive subsidies for green investment. This creates a ‘global subsidy race’ in which the UK must now compete.

Implementation and accountability

Industry leaders are calling for a joint Automotive Growth Taskforce, made up of representatives from the SMMT, government, unions, and academia, to ensure that the strategy is in place as soon as possible and that there is full accountability for the actions taken (and not taken). Timely delivery is critical, especially for securing the UK’s share of global EV investment (projected to exceed £1 trillion by 2035).

Key implementation metrics include:

Installing 300,000 public EV chargers by 2030.
Achieving 60% domestic sourcing of EV components.
Attracting £20 billion in private investment by 2030.

‘Success hinges on delivery, not just design,’ Mike Hawes, SMMT CEO emphasised. ‘This is the moment to act—together and decisively.’

A strategic turning point

The UK automotive sector stands at a crossroads. The 10-point plan opens a credible pathway to growth, sustainability, and technological leadership. However, the question arises: Will the government and industry turn vision into reality? If the UK rises to the occasion, it could define not just the future of mobility but a new era of British industrial strength. Let’s wait and see what the future holds for the British automotive sector.