The UK automotive industry has called for urgent government intervention to safeguard the sector and Britain’s transition to zero emission vehicles. The call comes as new analysis by the Society of Motor Manufacturers and Traders (SMMT) reveals that weak demand for EVs and the need to fulfil ever-rising sales quotas will cost the industry some GBP 6 billion in 2024, increasing more in 2025. Market demand has failed to meet ambitions to reduce the UK’s carbon footprint, with interest rates remaining high, raw material costs and energy prices significant, and geopolitical tensions and economic uncertainty impacting global confidence.

Combined with the unplanned snap election called by Chancellor Olaf Scholz in February next year, uncertainty surrounds one of Germany’s biggest employers, Volkswagen. Struggling with weak consumer demand, the cost of switching from ICE platforms to EVs and high competitions from Chinese OEMs, the brand recently announced proposals to shut factories in the market. Its workforce has raised concerns over these plans and strikes may commence from December.

Jaguar recently unveiled a major rebranding exercise, including an all-new logo in a bid to move the marque into a more luxurious space. This coincides with the anticipated launch of a new model later this month.