Britain’s automotive sector could face long-term decline unless it sharpens its industrial strategy and secures its place in the electric vehicle (EV) supply chain, according to a new report from the Jacques Delors Centre.
The study, Europe’s Car Industry in Transition: Stuck in Neutral or Shifting into Gear?, warns that “standing still is not an option” for Europe’s carmakers as the global industry pivots to battery-electric vehicles. It argues that slowing the shift to EVs “does not stabilise the industry – it accelerates its decline.”
While the report focuses on the EU, its findings highlight challenges that are particularly acute for the UK. Car production in Britain has fallen to its lowest level since 1954, with post-Brexit supply chain disruption, rapidly escalating EV mandates, and inconsistent policy signals weighing on manufacturers.
“The problem isn’t demand,” the authors note, citing growing consumer interest in EVs across Europe. Instead, they argue, the real barrier is cost: average battery-electric vehicle prices in the Eurozone remain around 22% higher than comparable petrol models, a gap driven by manufacturers’ focus on premium offerings rather than affordable mass-market cars.
Several EU nations have begun to address this through coordinated industrial policy. Poland’s early investment in battery manufacturing has “sparked a regional cluster,” while France’s “Battery Valley” and Spain’s EV recovery schemes have attracted billions in investment. By contrast, the UK risks being isolated from these emerging value chains.
“National efforts can succeed,” the report says, “but without a broader ecosystem, they cannot compete with global leaders like China,” whose dominance in batteries and low-cost EVs poses a growing threat.
Industry analysts say the message for the UK is clear: consistency, affordability, and collaboration are essential. “Frequent changes to incentives and shifting targets erode confidence,” the report warns, urging policymakers to provide “stable signals” to support domestic production and investment.
With the EU accelerating its transition, the question now is whether the UK can keep pace – or whether, in the race to electrification, Britain risks being left on the hard shoulder.
“UK risks being left behind as Europe accelerates EV transition: Report” was originally created and published by Motor Finance Online, a GlobalData owned brand.
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