Are energy prices driving UK carmakers to a dead end?

Analysts suggest the country’s automotive industry faces £90 million energy cost hike

Big Zero Report 2022

The British automotive industry could be the next victim of spiralling energy costs.

New analysis from the Society of Motor Manufacturers and Traders (SMMT) shows firms face a £90 million uplift in their energy bills this year as costs surge by 50%.

The report suggests the UK electricity prices are the most expensive of any European automotive manufacturing country and 59% higher than the EU average.

Last year, UK manufacturers could have saved almost £50 million if they were buying energy in Europe rather than the UK, the industry body has said.

Mike Hawes, SMMT Chief Executive, said: “Help with energy costs now will help keep us competitive and be a windfall for the sector, stimulating investment in innovation, R&D, training – all reinvested in the UK economy.

“With the right backing this sector can drive the transition to net zero, supporting jobs and growth across the UK and exports across the globe.”

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