on the road within a year, if ever. The introduction of the Plug-In Car Grant and roll-out of infrastructure by the Plugged-In Places programme will significantly boost the electric vehicle market in the UK and pave the way for growth in years to come. However, the number of vehicles involved will be in the hundreds or possibly thousands, not in the millions. In EV terms this is fantastic because the market is at a very early stage and must grow in a sustainable manner. Anyone who compares a market which is 100 years old, to one which is a couple of years old should recognise this difference and adjust expectations accordingly. As the industry evolves and other technologies are introduced we will see the same pattern emerge again.
In the last 10 years, huge strides have been made to reduce the environmental impact of its products throughout the life cycle. Average new car tailpipe CO2 emissions have also been slashed and are down 17% compared to 2000 levels. More recently, UK government has recognised the importance of the electric vehicle industry and has paved the way for significant support for it. Despite a change of government, support for this part of the industry has been maintained, a strong signal of its importance.
The next challenge for the emerging industry will be to establish a robust, sustainable and scalable supply chain. Many vehicle manufacturers are targeting the UK as their primary sales market in Europe thanks to the reasons mentioned above. However, these manufacturers are also looking for ways to source components from the same market. The UK sourcing roadmap (Growing the UK Automotive Supply Chain: the Road Forward) is a report which analyses the level of components sourced in the UK by UK manufacturing plants. Improving the ability of manufacturers to source locally is an important topic for the Automotive Council and will form a significant part of the industry’s work in the years to come.
The New Automotive Innovation and Growth Team (NAIGT) technology roadmap clearly illustrates how the automotive industry will include many different technologies in years to come. The internal combustion engine will continue to form the bedrock of the industry and many alternative technologies, including electric, hybrid and fuel cell vehicles, are emerging and will develop so that the auto industry will no longer be reliant on one solution.
The NAIGT roadmap was presented to the UK government to help inform policy making and support for the auto industry in the future. This report and the formation of the Automotive Council, an unprecedented link between government and the automotive industry, will support the ongoing development of low carbon vehicles. In the short- term, the importance to government of the emerging electric vehicle industry has been made clear by the large investment to support the market, like the £43 million for the Plug-In Car Grant incentive and £30 million for the Plugged-In Places infrastructure programme.
The automotive industry is a vital part of the UK economy with £40 billion turnover and £8.5 billion value added. With over 700,000 jobs dependent on the industry, it accounts for 9% of total UK exports and invests £1 billion each year in R&D.
|44| ENVIRONMENT INDUSTRY MAGAZINE
Fortunately, the rapidly expanding low carbon automotive industry presents significant investment opportunities, both for UK and overseas investors. With new products, new components, new business models and new areas of the value chain, the emerging industry has the potential to contribute significantly to the UK economy and remain at the forefront of the global market.
While the efforts of the industry focussed on market preparation up to and throughout 2010, the focus is now on growing the market sustainably. The UK is in a strong position and has the opportunity to lead the alternative fuel industry, thanks to a convergence of unprecedented conditions which will pave the way for a viable industry.
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