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LOW CARBON VEHICLES

This article discusses the UK automotive sector's role in building a low carbon future, including investments in electric vehicles, renewable energy, and regulatory efforts to reduce CO2 emissions.

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LOW CARBON VEHICLES

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  1. LOW CARBON VEHICLES KonstanzeScharring, Director of Policy, SMMT Workshop - ‘Green Technology: Do we risk falling behind?’ TUC Climate Change Conference, 21 October 2013

  2. THE UK AUTOMOTIVE SECTOR UK automotive industry produces 1.5 million vehicles and over 2 million engines annually Automotive is vital to the UK economy • Around £55 billion turnover • Over 700,000 jobs dependent on automotive • Over 80 % of UK produced cars are exported • Invests £1.3 billion in R&D each year • £8bn investment committed to UK since 2010 UK is home to 7 volume car manufacturers, 8 commercial vehicle, 11 bus & coach, more than 10 major premium & sports vehicle manufacturers and over 2,350 component manufacturers UK is 2nd largest new car market in Europe (ca. 2.1m) & only major growth market in EU

  3. BUILDING A LOW CARBON FUTURE £725m investment for LEAF, Invitation & battery plant, Sunderland BMW to build engines for its i8 plug-in hybrid sport car, Hams Hall Toyota creates first car plant solar array, Burnaston MIRA £250m facility expansion, Nuneaton £505m low emissions engine plant, Wolverhampton Expansion of TATA European Technical Centre, Warwickshire £24m investment to produce fuel-efficient engines, Bridgend

  4. GLOBAL REGULATORY DRIVE ON NEW CAR CO2 Source: ICCT 2013

  5. UK NEW CAR CO2 EMISSIONS UK actual new car CO2 emissions to 2012 and EU targets for 2015 and 2020 Average new car: 133.1g/km in 2012, -3.6% on ‘11 -26.5% on ‘00 Step change performance since 2008 Challenge ahead to achieve pan-EU target of 95g/km by 2020 2000-2007 trend extrapolation 130g/km by 2015

  6. 55.0% of the market below 130g/km and 8.2% below 100g/km, compared with 0.9% and 0% in 2000 Significant progress, but challenges ahead DRIVING SHIFT TO LOWER CARBON OPTIONS Source: SMMT CO2 report (2013)

  7. GROWING THE EV MARKET Plug-in Car Grant (PiCG) eligible registrations market share more than doubled in 2012 to 0.11% 3,633 PiCGs and 264 Plug-in Van Grants (PiVGs) issued by March 2013 2011 2012 Source: SMMT data

  8. GROWING CONSUMER CHOICE By 2014, 8/9 car segments will have a plug-in model Broad range of models available and coming to market Vauxhall Ampera Nissan LEAF BMW i3 * Anticipated number of EV car models Source: SMMT data Toyota Prius Plug-in Hybrid Porsche 918 Spyder Mitsubishi Outlander PHEV

  9. LOW CARBON NOT LIMITED TO CARS Government supports deployment of low carbon technology across vehicle types: • Plug-in Van Grant – 25% off purchase price up to £8,000 • TSB £11.6m Low Carbon Truck Demonstration Trial (2012) • Green Bus Fund Round 4 announced December 2012 brings total fund spend to £95m – majority manufactured in the UK Low carbon has value across different vehicle types: Optare Versa EV • Electric powered - low running costs • Low vibration - comfortable ride • Three moving parts - low maintenance Optare Versa EV wins 2013 SMMT Award for Innovation

  10. STRATEGIC PARTNERSHIP - AUTOMOTIVE COUNCIL Automotive Council Strategic industry-government partnership since 2009 Vince Cable MP & Richard Parry-Jones CBE, co-chairs Top level leadership by automotive and government Full Council, Technology Group & Supply Chain Group www.automotivecouncil.co.uk Priorities Improving the attractiveness of the UK as a place to invest Strengthening the UK supply chain Increasing investment in R&D, esp. low carbon technologies Improving the image of the UK automotive sector

  11. THE INDUSTRY TECHNOLOGY ROAD MAP Portfolio approach - passenger cars Source: Automotive Council

  12. AUTOMOTIVE COUNCIL - 5 STRATEGIC TECHNOLOGIES Internal Combustion Engines Energy Storage and Energy Mgt Electric Machines and Power Electronics Strategic Technologies for UK Auto Industry Lightweight Vehicle and Powertrain Structures Intelligent Mobility

  13. FURTHER INDUSTRY AND GOVERNMENT COLLABORATION ENABLING TECHNOLOGY DEVELOPMENT UKH2Mobility is a collaborative project between industry and government to develop a consensus vision for the roll out of hydrogen in the UK Phase 1 key findings (April 2013): • CO2 emissions can be 75% lower for FCEVs than conventional diesel vehicles • FCEVs will be at least cost competitive with conventional vehicles • 1.6m FCEVs could be on the road by 2030 • The UK would need 1,150 hydrogen refuelling stations to meet potential consumer demand

  14. AUTOMOTIVE SECTOR STRATEGY – JULY 2013 Four key strategy themes: • Technology • Supply chain • Business environment • Skills Key recommendations: • Advanced Propulsion Centre (APC) - Industrialisationof UK technology in collaborative pre-competitive projects, £1bn for 10 years match-funded • Motoring taxation & ULEV strategy – Long term approach to tax & incentives to 2020, £500m OLEV funding till 2020 • Industrial Partnership for skills - Industry framework to create comprehensive talent pipeline • Automotive Investment Organisation (AIO) - New body to attract target list of key Tier 1 investors & secure existing OEM investment • Tooling Finance - Framework agreement with BBA on access to tooling finance for suppliers via high street banks • Supply chain competitiveness programme: AMSCI bid £40 million, long term competitiveness improvement across UK supply chain, match-funded

  15. ‘DRIVING THE FUTURE TODAY’ OLEV strategy – September 2013 Keeping the existing plug-in vehicle grants until at least May 2015 Launching a call for evidence to inform the £500m 2015-2020 package of support Jointly developing a consumer communications campaign with industry Working with industry on an initial network of circa 65 hydrogen refuelling stations Maintaining a strong, clear and lasting set of tax incentives for the purchase of ULEVs Clarifying the tax position for ULEVs with HMRC Source: OLEV

  16. COMMITMENT & COLLABORATION IN UK £400m OLEV support to 2015: Vehicle, Infrastructure, R&D £500m for Advanced Propulsion Centre + £500m from industry £500m OLEV support to 2020 Fiscal incentives to 2020 H2 UK Mobility – Phase 2 report due (www.ukh2mobility.co.uk) ‘Go Ultra Low’ - Joint Ultra Low Carbon Communication Campaign in 2014

  17. Thank you

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