Policy for a strong UK automotive industry

Report
LOW CARBON VEHICLES
Konstanze Scharring, Director of Policy, SMMT
Workshop - ‘Green Technology: Do we risk falling behind?’
TUC Climate Change Conference, 21 October 2013
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
SMMT, the ‘S’ symbol and the ‘Driving the motor
industry’ brandline are trademarks of SMMT Ltd
THE UK AUTOMOTIVE SECTOR
•
UK automotive industry produces 1.5 million vehicles and over
2 million engines annually
•
Automotive is vital to the UK economy
– Around £55 billion turnover
– Over 700,000 jobs dependent on automotive
– Over 80 % of UK produced cars are exported
– Invests £1.3 billion in R&D each year
– £8bn investment committed to UK since 2010
•
UK is home to 7 volume car manufacturers, 8 commercial
vehicle, 11 bus & coach, more than 10 major premium & sports
vehicle manufacturers and over 2,350 component
manufacturers
•
UK is 2nd largest new car market in Europe (ca. 2.1m) & only
major growth market in EU
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 2
BUILDING A LOW CARBON FUTURE
BMW to build
engines for its i8
plug-in hybrid
sport car, Hams
Hall
£505m low emissions
engine plant,
Wolverhampton
£24m investment to produce
fuel-efficient engines,
Bridgend
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
£725m investment for LEAF,
Invitation & battery plant,
Sunderland
Toyota creates first
car plant solar array,
Burnaston
MIRA £250m facility
expansion, Nuneaton
Expansion of TATA
European Technical
Centre,
Warwickshire
PAGE 3
GLOBAL REGULATORY DRIVE ON NEW CAR CO2
Source: ICCT 2013
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 4
UK NEW CAR CO2 EMISSIONS
• Average new car: 133.1g/km in 2012, -3.6% on ‘11 -26.5% on ‘00
• Step change performance since 2008
• Challenge ahead to achieve pan-EU target of 95g/km by 2020
UK actual new car CO2 emissions to 2012 and EU targets for 2015 and 2020
Sales weighted average CO2 g/km
190
UK average
180
EU targets
170
2000-2007 trend extrapolation
160
150
140
130
130g/km by 2015
120
110
100
95g/km by 2020
90
'00
'02
'04
'06
'08
'10
Year
'12
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
'14
'16
'18
'20
PAGE 5
DRIVING SHIFT TO LOWER CARBON OPTIONS
• 55.0% of the market below 130g/km and 8.2% below 100g/km,
compared with 0.9% and 0% in 2000
• Significant progress, but challenges ahead
Market by CO2 bands
Registrations (millions)
3.0
201+
2.5
2.0
131-200
1.5
1.0
96-130
0.5
<95
0.0
'00
'02
'04
'06
Year
'08
'10
'12
Source: SMMT CO2 report (2013)
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 6
GROWING THE EV MARKET
• Plug-in Car Grant (PiCG) eligible registrations market share
more than doubled in 2012 to 0.11%
• 3,633 PiCGs and 264 Plug-in Van Grants (PiVGs) issued by
March 2013
EV car registrations 2011/2012
Registrations
4000
Extended
Range
(EREV)
Plug-in
Hybrid
(PHEV)
Pure EV
(PEV)
3000
2000
1000
0
2011
2012
Source: SMMT data
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 7
GROWING CONSUMER CHOICE
• By 2014, 8/9 car segments will have a plug-in model
Available electric car models for
purchase in the UK market
Number of models
25
Broad range of models
available and coming to market
20
15
10
5
Nissan
Vauxhall
Toyota
BMW
Mitsubishi
Porsche
i3Prius
LEAF
918
Ampera
Outlander
Spyder
Plug-in Hybrid
PHEV
0
2012
2013
2014*
* Anticipated number of EV car models
Source: SMMT data
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 8
LOW CARBON NOT LIMITED TO CARS
• Government supports deployment of low carbon
technology across vehicle types:
– Plug-in Van Grant – 25% off purchase price up to £8,000
– TSB £11.6m Low Carbon Truck Demonstration Trial (2012)
– Green Bus Fund Round 4 announced December 2012 brings total fund
spend to £95m – majority manufactured in the UK
• Low carbon has value across different vehicle types:
Optare Versa EV
– Electric powered - low running costs
– Low vibration - comfortable ride
– Three moving parts - low maintenance
Optare Versa EV wins 2013 SMMT
Award for Innovation
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 9
STRATEGIC PARTNERSHIP - AUTOMOTIVE COUNCIL
Automotive Council
•
•
•
•
Strategic industry-government partnership since 2009
Vince Cable MP & Richard Parry-Jones CBE, co-chairs
Top level leadership by automotive and government
Full Council, Technology Group & Supply Chain Group
www.automotivecouncil.co.uk
Priorities
•
•
•
•
Improving the attractiveness of the UK as a place to invest
Strengthening the UK supply chain
Increasing investment in R&D, esp. low carbon technologies
Improving the image of the UK automotive sector
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 10
THE INDUSTRY TECHNOLOGY ROAD MAP
Portfolio approach - passenger cars
Source: Automotive Council
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 11
AUTOMOTIVE COUNCIL - 5 STRATEGIC TECHNOLOGIES
Internal
Combustion
Engines
Electric
Machines
and Power
Electronics
Strategic
Technologies
for UK Auto
Industry
Lightweight
Vehicle and
Powertrain
Structures
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
Energy
Storage and
Energy Mgt
Intelligent
Mobility
PAGE 12
FURTHER INDUSTRY AND GOVERNMENT
COLLABORATION ENABLING TECHNOLOGY
DEVELOPMENT
• UKH2Mobility is a collaborative project between industry and
government to develop a consensus vision for the roll out of
hydrogen in the UK
• Phase 1 key findings (April 2013):
– CO2 emissions can be 75% lower for FCEVs than conventional diesel
vehicles
– FCEVs will be at least cost competitive with conventional vehicles
– 1.6m FCEVs could be on the road by 2030
– The UK would need 1,150 hydrogen refuelling stations to meet potential
consumer demand
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 13
AUTOMOTIVE SECTOR STRATEGY – JULY 2013
• Four key strategy themes:
1.
2.
3.
4.
Technology
Supply chain
Business environment
Skills
• Key recommendations:
– Advanced Propulsion Centre (APC) - Industrialisation of UK technology in
collaborative pre-competitive projects, £1bn for 10 years match-funded
– Motoring taxation & ULEV strategy – Long term approach to tax & incentives
to 2020, £500m OLEV funding till 2020
– Industrial Partnership for skills - Industry framework to create comprehensive
talent pipeline
– Automotive Investment Organisation (AIO) - New body to attract target list of
key Tier 1 investors & secure existing OEM investment
– Tooling Finance - Framework agreement with BBA on access to tooling finance
for suppliers via high street banks
– Supply chain competitiveness programme: AMSCI bid £40 million, long term
competitiveness improvement across UK supply chain, match-funded
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 14
‘DRIVING THE FUTURE TODAY’
OLEV strategy – September 2013
Keeping the existing plug-in vehicle grants
until at least May 2015
Launching a call for evidence to inform the
£500m 2015-2020 package of support
Jointly developing a consumer
communications campaign with industry
Working with industry on an initial network
of circa 65 hydrogen refuelling stations
Maintaining a strong, clear and lasting set
of tax incentives for the purchase of ULEVs
Clarifying the tax position for ULEVs with
HMRC
Source: OLEV
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 15
COMMITMENT & COLLABORATION IN UK
• £400m OLEV support to 2015: Vehicle, Infrastructure, R&D
• £500m for Advanced Propulsion Centre + £500m from
industry
• £500m OLEV support to 2020
• Fiscal incentives to 2020
• H2 UK Mobility – Phase 2 report due
(www.ukh2mobility.co.uk)
• ‘Go Ultra Low’ - Joint Ultra Low Carbon Communication
Campaign in 2014
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 16
Thank you
Society of Motor Manufacturers and Traders Limited
71 Great Peter Street, London SW1P 2BN
www.smmt.co.uk
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED

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