K automakers are facing a 50% increase in energy costs this year, industry groups warn.
According to an analysis by the Motor Manufacturers and Traders Association (SMMT), annual energy prices in this sector are already £ 50 million higher than European Union rivals and will increase by £ 90 million in 2022.
According to SMMT, electricity prices in the UK are the highest among European car-making countries, 59% above the EU average.
Stay competitive by supporting energy costs
So if a UK company had bought energy in the EU, it would have saved nearly £ 50m.
The additional cost of manufacturing vehicles and parts in the UK puts manufacturers at a competitive disadvantage, SMMT warned.
At the organization’s annual summit in central London, SMMT CEO Mike Hoes said that challenges such as coronavirus pandemics, parts shortages and trade uncertainty are “immeasurable.” However, dealing with the high energy costs of the UK is “the industry’s biggest challenge.”
He goes on to say: “Energy cost support will keep us competitive, plunge the sector and stimulate investment in innovation, R & D and training, all of which will be reinvested in the UK economy.
“With the right support, this sector can accelerate the transition to Net Zero and support employment and growth across the UK and exports around the world.”