Britain’s automotive sector could see a fresh wave of investment in research and innovation, with 83.9% of businesses surveyed saying they are likely to begin or expand UK spending over the next five years.
The findings come from the Society of Motor Manufacturers and Traders (SMMT), whose report says the industry already invests £5.3bn a year in UK research, development and innovation.
From clever ideas to commercial production
The opportunities range from electric vehicle batteries and motors to lightweight materials, self-driving software, artificial intelligence and cybersecurity. These technologies could lead to British products and services being sold around the world.
Businesses highlighted the UK’s talent pool, university partnerships and government funding as key advantages. However, respondents said the biggest obstacle is moving promising technology from the laboratory into commercial production.
The SMMT is calling for long-term support covering demonstration projects, pilot manufacturing and scale-up. It also says lower industrial energy costs and quicker grid connections would help energy-intensive advanced manufacturing.
Four in five of the UK’s 24 automotive research and development centres are based outside London and the South East. That means further growth could benefit industrial communities across the country, provided investment leads to production rather than being developed and commercialised elsewhere.
Why it matters for Britain
More domestic automotive research could help secure skilled jobs, stronger supply chains and production opportunities across the UK. It would also build on the sector’s existing £5.3bn annual investment and support the development of technologies for global markets.
