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The UK government has launched a new industrial strategy, aiming to propel the country into the top 15 global automotive manufacturing nations by 2030. This ambitious plan, announced on June 27, 2025, at the SMMT International Automotive Summit in London, seeks to double annual investment in advanced manufacturing—including automotive—by 2035.
The strategy addresses key challenges in the sector, such as high energy costs, by offering qualifying manufacturers lower electricity rates, with potential savings of up to 25% on bills starting in 2027. The government has also established the Drive35 £2.5 billion auto capital and R&D fund to support innovation, attract investment, and encourage high-value job creation.
The strategy encompasses measures to tackle infrastructure needs and skills shortages, critical for supporting a modern, competitive automotive industry. A cross-government framework, coupled with a new trade strategy, is designed to help the UK automotive sector compete globally and attract investment, particularly in light of challenging trade conditions and geopolitical uncertainties.
The strategy is projected to boost the UK economy by £50 billion over the next decade, driven by increased manufacturing output, job creation, and innovation in electric vehicle (EV) technology.
Meanwhile, the new Dacia Bigster, the focus of the latest Autovista24 Launch Report, offers a great design and comfortable driving experience. However, it falls short in offering some premium features compared to its rivals. The interior quality is impacted by cheaper plastics and materials, and there is an abundance of physical buttons to control certain vehicle systems. Despite these limitations, the Dacia Bigster performs well in terms of forecast residual values (RVs), particularly after 36 months and 60,000km.
In other automotive news, Volvo is recalling 14,014 electric vehicles in the US due to a software issue with the brakes. Meanwhile, France has issued a major recall for 2.5 million cars due to faulty airbags, affecting different brands. The recalled airbags, made by the now-defunct airbag supplier, Takata, can explode upon impact, potentially causing fatal consequences. A 'do not drive' order has been issued for all brands using the faulty airbags across France and its territories.
Trade discussions have also been in the spotlight, with the agreement between the UK and the US lowering tariff rates to 10%. Trading with China was recognized as a future opportunity, with potential for carmakers to localize their manufacturing efforts as more brands enter the market.
Mike Hawes, SMMT chief executive, praised the UK industrial strategy but expressed concerns about electricity costs and their potential impact on small and medium-size businesses. As the UK automotive sector moves forward, it will be crucial to address these challenges and continue to innovate to remain competitive on a global scale.
- To enhance the competitiveness of the UK automotive industry, the government's industrial strategy includes a focus on lowering electricity rates for qualifying manufacturers, offering potential savings of up to 25% on bills starting in 2027.
- In addition to addressing energy costs, the UK government's automotive industry strategy includes the establishment of the Drive35 £2.5 billion auto capital and R&D fund, aimed at encouraging innovation, attracting investment, and job creation in advanced manufacturing.
- The UK government's industrial strategy encompasses measures to tackle infrastructure needs and skills shortages, crucial for supporting a modern and competitive automotive industry, which includes a cross-government framework and a new trade strategy to help the sector compete globally.
- The UK government's industrial strategy is expected to have significant economic benefits, with a projected boost of £50 billion over the next decade driven by increased manufacturing output, job creation, and innovation in electric vehicle (EV) technology.
