The automotive industry is the UK's largest source of exports for goods. Over 80% of cars and some 60% of commercial vehicles produced in the UK are built for export, with the UK selling into 150 markets worldwide. The average wage in the automotive manufacturing industry is around 35% higher than the UK average, and in a region like the North East over 60% higher than the local wage. Every job in the sector creates another 1.7 jobs in the wider economy. The automotive sector is also a significant keystone for creating and sustaining jobs in other sectors, such as chemicals, steel, aftermarket, logistics, finance and advertising. Across the UK, over 180,000 employees are directly employed in automotive manufacturing, and a total of 860,000 in the wider automotive industry, including retail, leasing and fuel supply. If the automotive industry didn't exist, we estimate that this would be enough to increase the economic gap between London and the North East by a further 9% and in the West Midlands by 3%. In total, the automotive industry directly contributes £15 bn in GVA for the UK economy, with the majority of the value created by the automotive industry located outside the South East of England. The industry creates many significant spillover benefits:.The UK automotive industry has many important advantages: enough scale and affluence to serve across the full range of the market and support a diverse supply-chain strong global connections world-leading engineering a highly skilled workforce and healthy consumer demand. From MINI to Aston Martin, Jaguar Land Rover to Bentley, British brands are famous worldwide. Besides passenger cars, the UK automotive sector is also a significant producer of buses, vans and a wide range of commercial vehicles to Formula 1 cars, ambulances to taxis, as well as remanufactured products and a vast supply chain.Whether it is the car that drives them to work, the light van that delivers a new parcel, or the bus that takes you to the nearest shops, the automotive industry plays a crucial role in keeping the economy going. 95% of car owners agree that their car gives them significantly greater freedom and mobility. For most families, the car is one of the most important technologies in their lives.The automotive industry provides good jobs, levels up the UK and is our largest exporter of goods Given the long leads for investment, many key policy decisions will need to be made in the next 24 months. Without that support however, there is a real risk that the industry’s economic footprint could substantially decline. With the right support, the industry could continue to provide good jobs and boost growth for decades to come. The next ten years will be crucial to the long-term future of the industry.Independent analysts predict that by 2025, the UK will have just 12 GWh of lithium-ion battery capacity, compared to 164 GWh in Germany, 91 GWh in the US or 32 GWh in France. Unlike other major governments, the UK has yet to back its ambition with a matching level of investment in battery production incentives, charging networks and affordable clean energy. While the costs for building zero emission vehicles are falling, this is not happening quickly enough for the industry to hit the 2030 target whilst retaining its global share and volume of production. Within the automotive industry, firms employ skilled workers of all kinds - from PhDs in design to apprenticeships and BTECs in engineering - in places where genuinely skilled jobs are few and far between. Moving away from the Internal Combustion Engine (ICE) is an important next step in the UK’s path to Net Zero, and the UK has set one of the most ambitious targets for the phasing out of ICE vehicles, with an end of sale date for passenger cars from 2030. The automotive industry is at the centre of both goals. The Government has set ambitious goals to achieve Net Zero, while simultaneously levelling up the country through spreading skills, wealth and opportunity.
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