6th Auto Trade Dialogue 4th February 2014, New Delhi Auto Trade Dialogue 4th February 2014, New...
Transcript of 6th Auto Trade Dialogue 4th February 2014, New Delhi Auto Trade Dialogue 4th February 2014, New...
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor
industry’ brandline are trademarks of SMMT Ltd
6th Auto Trade Dialogue 4th February 2014, New Delhi
DAVID CROXSON HEAD OF INTERNATIONAL, SMMT
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 2
KEY ASPECTS OF
UK AUTO SECTOR POLICY
1. SMMT
2. The current position of the UK sector
3. The UK Automotive Industrial Strategy
4. A Low Carbon Connected Future
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 3
Society of Motor Manufacturers and Traders (SMMT)
• Since 1902 - representing the UK industry - vehicle manufacturers, OEM
component and independent aftermarket manufacturers, suppliers and
distributors www.smmt.co.uk
• Liaising with UK government – Automotive Council
• Contact with EU Commission and European trade bodies to influence
national and international standards and legislation – and help members
access UK and European government funding
• Promoting industry - inward / outward trade delegations / exhibitor groups
overseas, organising exhibitions including the annual Commercial Vehicle
Show
• Support industry on technical and vehicle legislation, e-business, quality,
environment, education and training
• Providing data services - acknowledged as reliable, accurate and
comprehensive
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 4
7 Key policy areas for SMMT
• Automotive sector industrial strategy Actively support and deliver the Automotive Sector Strategy by working with the Automotive Council on its key areas: and support the work of the Automotive Investment Organisation (AIO) in securing automotive investment in the UK and the establishment of the Advanced Propulsion Centre (APC) to develop and industrialise promising low carbon technologies.
• Low carbon vehicles and technologies Shape government spending priorities on £500m committed to ultra-low carbon vehicles, infrastructure and R&D for 2015-2020. Deliver an ultra-low carbon consumer communications campaign in a joint initiative by government and a members’ consortium to accelerate the early market and influence the Mayor’s plans for a 2020 Ultra-Low Emission Zone.
• Influence in Europe and internationally Deliver the automotive industry’s voice in the debate about the UK’s EU membership and actively support ambitions for fair and reciprocal trade deals engaging early with the incoming European Parliament and European Commission, working with sister associations in the EU and beyond.
• Political Manifestos for 2015 Engage with manifesto makers and political influencers in the run-up to the general election in 2015 to ensure cross-party support for the Automotive Council and industry’s agenda on competitiveness, innovation and skills and also engage on the future of motoring taxation, energy efficiency regimes and business rates.
• CO2, air quality, noise and biofuels Shape key environmental policies on CO2, air quality, noise and alternative fuels, working collaboratively with European and UK policy makers, the Mayor of London’s office, TfL and other bodies.
• Technology and innovation Help automotive SMEs to increase their innovative capabilities and participation in collaborative R&D under 'Horizon 2020'. Support the Automotive Council Technology Group, Transport Knowledge Transfer Network, Cenex and the High Value Manufacturing Catapult and stimulate greater engagement between the sector and universities.
• Vehicle legislation Support UK-based trailer makers, converters and bodybuilders in complying with new European Whole Vehicle Type Approval requirements. Businesses will also be able to access regional workshops, held jointly with VOSA and VCA, to help and guide through SENTA, the SMMT European and National Type Approval webtool.
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 5
SMMT Motor Industry Facts 2013
• Car production rose 3.1% in 2013 to surpass 1.5 million units – the highest volume since 2007. Industry analysts predict output to reach record levels of around two million units by 2017 and UK could become the third largest car manufacturer in Europe
• UK automotive industry produces over 2 million engines annually
• UK is home to 7 volume car, 8 commercial vehicle, 11 bus & coach manufacturers, more than 10 major premium & sports vehicle manufacturers, 8 Formula 1 teams and over 2,350 component manufacturers
• Over 79% of UK produced cars are exported
• UK is now the 2nd largest new car market in Europe and the only major growth market in EU with strong premium brands second only to Germany in global market share
• Automotive is vital to the UK economy
– Around £59 billion turnover
– Over 700,000 jobs dependent on automotive
– Exports to over 100 markets - £30bn revenue
– Invests £1.3 billion in R&D each year
– £7bn investment committed to UK since 2010
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 6
New car registrations 2013
• 2,264,737 cars registered in 2013, up 10.8% on 2012 and exceeding SMMT’s 2.25
million forecast for the year
• 2013 hits highest annual registration total since 2007 as December achieves
22nd consecutive monthly rise
• Supermini largest segment: 1st. Ford Fiesta, 2nd. Ford Focus, 3rd. Vauxhall
Corsa, 4th. Vauxhall Astra, 5th. VW Golf, 6th. Nissan Qashqai
• Petrol took almost 49% and Diesel 51% of the market. Sales of hybrid and electric
vehicles rose a significant 20.5%, with 32,715 sold to make up 1.44% of the
market
• UK was the best performing market in Europe, posting its highest sales figures
since 2007 and firmly secured as Europe’s second largest car market and the
only one to grow consistently throughout 2013
• 2014 market expected to stabilise with sustainable growth of around 1% over the
year
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 7
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 8
Commercial vehicle registrations 2013
• 2013 total commercial vehicle registrations grew 14.7% to 327,291 units.
• Vans rose 13.1% over the year registering 271,073 units, boosted by 32.5%
growth in December and growth in internet trading deliveries.
• Truck registrations totalled 56,218 units in the year, up 23% as the move to Euro 6
fuelled growth.
• Bus and coach registrations ended the year down 4.9% in 2013 but posted
growth for the fifth consecutive month in December, up 55.9%.
• Purpose-built bus sector grew 14.7% in December, but remains down 3.3% over
the year so far.
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 9
UK car production
selected years with AutoAnalysis forecasts 2014-2017
Note:
1972 is currently the record year for car output (1.92 million cars)
0.0
0.5
1.0
1.5
2.0
2.5
1972 2007 2009 2012 2013 2014 2015 2016 2017
Mill
ions
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 10
UK car manufacturing exports at all time high
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
1,400,000
1,500,000
1,600,000
2007 2008 2009 2010 2011 2012
Total Export
0%
2%
4%
6%
8%
10%
12%
2009 2010 2011 2012 2013*
% o
f to
tal exp
ort
s
China
Russia
USA
Turkey
Australia
Top five non-EU export destinations, 2009-2013
(*2013 is Q1-3 only)
UK car exports to India :
2009 = 309
2010 = 1015
2011 = 2139
2012 = 3241
2013(qtr 3) = 2228
Mainly Aston Martin, Bentley, MINI, Caterham, JLR and R-R.
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 11
Over £7bn investment committments
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 12
Vauxhall
£125m
Ellesmere Port
MINI
£250m
Production
triangle
Nissan
£252m
New Infiniti
and hatchback
Jaguar Land Rover
£500m
New engine plant
Investment
Global VMs have invested more than £7bn. In the UK in the last two years
• 14,000 direct new jobs; thousands more in supply chain
Toyota
£100m
New hatchback
Toyoda Gosei
500 new jobs
by 2017
TRW
£15
expansion
Unipres
£41m
Investment and 350
new jobs
Nifco: £30m
expansion
GKN
£12m
expansion
Calsonic Kansei
£15.3m
expansion
NSK Bearings:
£27m
expansion
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 13
Automotive Council
• Established in December 2009 as a key recommendation following the New
Automotive Innovation and Growth Team Report (NAIGT)
• High-level co-ordinating role between industry and government
• Chaired jointly by the Secretary of State for Business, Innovation and Skills Rt
Hon Vince Cable MP and the Industry Chair Richard Parry Jones
• Industry members of the Council include key UK automotive companies and
investors, as well as key stakeholders such Technology Strategy Board, Trade
Union, Bank and Trade Association representatives
• Aims are to enhance the attractiveness of the UK as a location for global
automotive investment, promote UK-based manufacturers and technologies,
strengthen the supply chain and position the UK as a leading global player in
developing, manufacturing and using ultra-low carbon technologies. Increasing
investment in R&D, especially low carbon technologies and improving the image of
the UK automotive sector
• Working groups on Technology, Business Environment and the Supply Chain
have been established to take forward work on key items
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 14
Automotive Sector Strategy
Collaborative project between government and industry
The strategy looks at four key themes:
1. Technology: Developing and manufacturing low carbon vehicles and technologies and how vehicles are
powered in future. Enhance and support R&D and the commercialisation by industry in emerging
technologies
2. Supply chain: To strengthen the UK supply chain by attracting inward investment and developing funding
mechanisms to encourage supply chain growth
3. Skills: Ensure the sector has access to a qualified and highly skilled workforce inspiring young people to
pursue careers in engineering to ensure the right skills are in place to build on the success of the sector.
4. Business environment: to make an increasing economic contribution to employment and prosperity in the
UK, maintain the UK's competitiveness in the global auto industry, capitalise on export opportunities
attracting more inward investment and business from overseas extending the reach into high growth
markets
Key recent new policy initiatives resulting:
• Advanced Propulsion Centre (APC) - industrialisation of UK technology in collaborative, pre-competitive
projects - £1bn over 10 years match funded
• Automotive Investment Organisation (AIO) – to ensure the UK can proactively support investment in the
UK (Led by Joe Greenwell CBE)
• Skills roadmap - increasing the numbers of both graduates and apprentices joining the industry
• Tooling Finance - Actions with the banking sector to improve access to finance – addressing automotive
specific challenges such as tooling finance
SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 15
Internal
Combustion
Engines
Energy
Storage and
Energy Mgt
Intelligent
Mobility
Lightweight
Vehicle and
Powertrain
Structures
Electric
Machines
and Power
Electronics Strategic
Technologies
for UK Auto
Industry
Technology Roadmap – 5 Strategic Technologies
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 16
Advanced Propulsion Centre
• The ‘Advanced Propulsion Centre’ (APC) will push innovation in fuel cells, electric and internal combustion engines to keep Britain at car technology’s leading edge.
• Established in 2013 and Chaired by Dr. Gerhard Schmidt formerly BMW engine research and development and Chief Technical Officer at Ford UK with CEO Tony Pixton previously in product development at Ford, Volvo and Mazda in Japan.
• More than £1billion will be invested in the UK over the next decade to build a hub of design, engineering and manufacturing.
• Forecast to create 30,000 jobs, including 7600 apprenticeships and 1700 graduates, by 2023.
• Funding split between industrial research, with a business partner attracting 50% public funding for their project costs (60% for SMEs), and experimental development, with a business partner attracting 25% funding (35% for a medium-sized company and 45% for small enterprises).
• JLR is one of 27 companies including Tata Motors, Optare, BMW, Nissan, Ricardo and GKN that have signed up to the innovation hub.
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 17
Further Technology Collaboration
Hydrogen Fuel Cell
• 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
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 18
‘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
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 19
Building a low carbon future
Expansion of TATA
European
Technical Centre,
Warwickshire
£725m investment for LEAF,
Infiniti & battery plant,
Sunderland
MIRA £250m facility
expansion, Nuneaton
Toyota creates first
car plant solar array,
Burnaston
£505m low emissions
engine plant,
Wolverhampton
£24m investment to produce
fuel-efficient engines,
Bridgend
BMW to build
engines for its i8
plug-in hybrid
sport car, Hams
Hall
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 20
Global Regulatory Drive on New Car CO2
Source: ICCT 2013
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 21
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
90
100
110
120
130
140
150
160
170
180
190
'00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20
Sa
les
we
igh
ted
ave
rag
e C
O2 g
/km
Year
UK average EU targets
95g/km by 2020
2000-2007 trend extrapolation
130g/km by 2015
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 22
Low emission vehicle policy in London
Congestion Charge
• London has incentivised low emitting vehicles by exempting them from a daily charge to drive into central London’s Congestion Charge Zone
• The Ultra Low Emission Vehicle discount exists for cars and vans which emit 75g/km or less of CO2 and meet the Euro 5 standard for air quality
Ultra Low Emission Zone
• Mayor of London Boris Johnson announced in February 2013 that an Ultra Low Emission Zone would be established in London by 2020
• The zone will cover all vehicle types with an objective to improve air quality and reduce emissions
• The Mayor announced in January 2014 that all newly licensed London
taxis would have to be ‘zero emission capable’ from 2018
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 23
• 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 Low Carbon Options
Source: SMMT CO2 report (2013)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
'00 '02 '04 '06 '08 '10 '12
Re
gis
tra
tio
ns
(m
illi
on
s)
Year
Market by CO2 bands
201+
131-200
96-130
<95
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 24
• Available electric car models for purchase in the UK market
• By 2014, 8 of the 9 car segments will have a plug-in model
Growing Consumer Choice
Broad range of models available and coming to
market
Nissan LEAF Vauxhall Ampera Toyota Prius Plug-in Hybrid BMW i3 Mitsubishi Outlander PHEV Porsche 918 Spyder 0
5
10
15
20
25
2012 2013 2014*
Nu
mb
er
of
mo
de
ls
* Anticipated number of EV car models
Source: SMMT data
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 25
Low Carbon Not Limited To Cars
Government supports deployment of low carbon technology
across vehicle types:
– Plug-in Car and Van Grants – 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
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 26
Connectivity
Automotive Council - Low Carbon Urban Transport Zone (LUTZ) • Supported by the Automotive Council, LUTZ is a project that aims to
demonstrate the potential of autonomous vehicles, cloud-enabled mobility and transport on-demand services
• The city of Milton Keynes has been chosen as a test-bed for this innovative technology with £1.5 million allocated as a first step
• In 2015 20 driver-operated pods will run on lanes separated from pedestrians and by mid-2017, 100 pods will be fully autonomous
Additional government actions
• UK government announced in December 2013 a
review of regulation and legislation to enable
driverless vehicles on the road, with a £10
million prize fund for a city to become a
consumer testing location
Society of Motor Manufacturers and Traders Limited
71 Great Peter Street, London SW1P 2BN
www.smmt.co.uk
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
Thank you
David Croxson
Head of International
+44 (0)20 7344 9230