The British car market is witnessing a recovery, marked by diverse demand and strategic advantages that are drawing increased investment from automakers and supply chain players. This positive trend is evident at the Low Carbon Vehicle (LCV) exhibition on September 4-5 in the UK (local time).
Organized by Cenex, the UK's premier Centre of Excellence for Low Carbon and Fuel Cell Technologies, the show highlights cutting-edge technologies driving the future of low-carbon vehicles. It also features seminars covering key industry topics, including batteries, electrification, and connected vehicles.
The UK LCV Show has become a prominent platform for automakers to unveil their latest innovations, with many new vehicle models launched at the event.
In a pre-show briefing on September 2, Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), provided a comprehensive overview of the European and UK automotive landscape. Hawes noted that while manufacturing accounts for about 10% of the UK's economy, the automotive industry—bolstered by significant investments from companies like Jaguar Land Rover, Tata, Ford, and Nissan in 2023—is a crucial driver of the UK's manufacturing sector.
Geopolitical and economic factors have posed challenges for the British automotive industry, leading to cautious investor sentiment and questions about the viability of UK investments. However, Hawes pointed out that overseas investment in the UK is rebounding, largely due to a surge in demand.
Statistics reveal that new car registrations in the UK have surpassed 1.15 million this year, showing a 5.5% increase year-on-year. While diesel vehicles have declined by about 13%, gasoline and hybrid electric vehicles (HEVs) have seen growth rates of 1.5% and 17.1%, respectively. Battery electric vehicles (BEVs) have contributed over 190,000 units, marking a 10.5% increase, while plug-in hybrid electric vehicles (PHEVs) have achieved an impressive growth of over 28%.
Hawes believes that while the growth of the EV market may not be immediately striking, it remains a very promising sector. In the rankings for the first half of 2024, Germany stood out as the largest EV market in Europe, with the UK closely following and France in third place. The number of EV models available in the UK market has surged from 21 in 2018 to 115 in 2024, covering various segments.
Although many EVs in the UK market are sourced from the EU and about 30% from China, the local market has become highly competitive due to UK government policies and the pressure of fines.
For industry chain operators, the UK's geographical advantage facilitates the convenient export of products manufactured there to Europe. Hawaes cited data showing that the UK exported over 710,000 vehicles in 2023, with Europe as the top destination, followed by the US and China.
Overall, the UK's domestic market offers diverse demands and numerous advantages for exports, making it an ideal location for companies in the materials, battery, electronics, and automotive supply chains to establish a presence, Hawaes concluded.
