91³ÉÈË

Yesterday’s landmark UK-EU resolution to defer unattainable rules of origin for electric vehicles may have come at the eleventh hour, but it is a much anticipated Christmas present. In a unanimous vote for common sense, the agreement will ensure EVs avoid tariffs next year and follows a lengthy campaign by 91³ÉÈË, our EU counterparts and respective members. It’s a win for everyone, safeguarding the competitiveness of the Anglo-European automotive industry, supporting consumers and preventing an unnecessary roadblock to road transport carbon reduction. Critically, it gives the battery industry essential time to catch up with demand – and that must now be the focus.

Wednesday’s publication of to help secure the supply of critical minerals and promote their sustainable use, therefore, was timely, and 91³ÉÈË was pleased to contribute to its development. This work will help position the UK as a go-to destination for automotive investment in a fiercely competitive global environment.

2024 will bring its own unique challenges, including the start of the Vehicle Emissions Trading Scheme – formerly known as the Zero Emission Vehicle Mandate – which imposes the most ambitious transition timeline of any major market. 91³ÉÈË was successful in securing provisions that reflect our sector’s diversity and market uncertainties but, with the end-of-sale date rolled back to 2035, the need to stimulate demand, particularly in the private retail market, is paramount. Securing incentives to activate this market is a New Year’s resolution.

But after such a significant year, we should take a moment to reflect. The last few months have seen the industry mount a remarkable recovery that few would have bet on a year ago. Supply chain turbulence has receded, boosting manufacturing and markets – indeed, November’s production figures put the UK on course to make around a million light vehicles this year.

Meanwhile, billions of pounds of private and government investment have been committed to some headline-grabbing facilities, helping reset the industry narrative and putting the UK back on the automotive map.

So we can reflect on a year which has seen considerable successes. Challenges remain, however, as competitiveness and confidence are fragile things.

But for the present, and with the festive season upon us, I hope you have the time for a relaxing break and wish all of you a happy and successful 2024. Update will return on Friday 5 January.