Britain\u2019s 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.<\/p>\n
The study, Europe\u2019s Car Industry in Transition: Stuck in Neutral or Shifting into Gear?, warns that \u201cstanding still is not an option\u201d for Europe\u2019s carmakers as the global industry pivots to battery-electric vehicles. It argues that slowing the shift to EVs \u201cdoes not stabilise the industry \u2013 it accelerates its decline.\u201d<\/p>\n
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.<\/p>\n
\u201cThe problem isn\u2019t demand,\u201d 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\u2019 focus on premium offerings rather than affordable mass-market cars.<\/p>\n
Several EU nations have begun to address this through coordinated industrial policy. Poland\u2019s early investment in battery manufacturing has \u201csparked a regional cluster,\u201d while France\u2019s \u201cBattery Valley\u201d and Spain\u2019s EV recovery schemes have attracted billions in investment. By contrast, the UK risks being isolated from these emerging value chains.<\/p>\n
\u201cNational efforts can succeed,\u201d the report says, \u201cbut without a broader ecosystem, they cannot compete with global leaders like China,\u201d whose dominance in batteries and low-cost EVs poses a growing threat.<\/p>\n
Industry analysts say the message for the UK is clear: consistency, affordability, and collaboration are essential. \u201cFrequent changes to incentives and shifting targets erode confidence,\u201d the report warns, urging policymakers to provide \u201cstable signals\u201d to support domestic production and investment.<\/p>\n
With the EU accelerating its transition, the question now is whether the UK can keep pace \u2013 or whether, in the race to electrification, Britain risks being left on the hard shoulder.<\/p>\n