New research reveals UK automotive industry vulnerability

Aston University researchers Professor Jun Du and Dr Oleksandr Shepotylo claim that the UK is in a weak position to capitalise on the EV revolution and immediate market opportunities, adding that the opportunity won’t wait for policymakers to catch up.

The UK is currently heavily exposed through its critical dependency on battery imports, with now exceed exports by 10.5 times, according to the report. Germany continues to lead the global market in the value of EV exports, whilst China now leads in terms of the number of EVs exported.

The report claims that the UK's automotive sector faces multiple challenges stemming from technological advancements, socioeconomic transformations and geopolitical intricacies, necessitating the formulation of ‘agile and responsive’ economic policies.

Researchers said that the UK’s departure from the EU amplifies these challenges, particularly in navigating non-tariff measures and rules of origin that exert influence on EV exports.

Short-term concerns within the EV battery supply chains can, researchers said, be attributed to trade policy issues, potentially evolving into medium-term dependencies on battery materials and production.