SMMT outlines plan to protect small volume OEMs

Next time some ignorant so-and-so tells you we don’t make any cars in the UK anymore and things just aren’t like they used to be, here are some stats to pipe them down with. According to the Society of Motor Manufacturers and Traders, British small volume automotive manufacturers – folk like McLaren, Morgan, and Bentley – turned over £5.5bn in 2024. Nine out of ten of the cars made are exported, so while representing just four per cent of total UK car production, they accounted for 12 per cent of the total value. All while supporting 15,000 people in high-skilled, well-paid roles – the SMMT’s words, not ours – alongside 60,000 further jobs in the supply chain. So there’s absolutely a success story to talk about when it comes to making cars in the UK. 

But changes are afoot for the industry, and while the Small Volume Manufacturers (SVM) are thriving for the moment, the SMMT is adamant they will require specific assistance from the Government to tackle what’s coming. The SMMT’s latest report, The UK’s Small Volume Automotive Manufacturers: An Enduring British Success Story, outlines what those challenges are and how they might be tackled. The problems are familiar – the need to decarbonise, the global economic predicament, rising costs, and the skills transition – with a recognisable set of dire consequences as well. Because volumes tend to be lower for these niche makers and development cycles longer, it can take more time to recoup investment. So the right decisions have to be made for the right cars at the right time; it’s much harder for small makers to deal with a misstep or a change in legislation than it is for the big players. 

Pleasingly, though, the SVM report outlines five measures it thinks should be introduced ‘to support a successful sector,  delivering innovation, trade, and jobs, and boosting UK economic activity in every region of the country.’ They include support for upskilling a workforce, further trade negotiations to keep exports flowing freely, help with the decarbonisation effort (including the need for ‘flexible pathways’ when dealing with lower volumes), more R&D funding, and, more broadly, recognising the contribution of the SVM sector. ‘It should be a key consideration in the Government’s forthcoming industrial and trade strategies’, says the report. Hear, hear. 

The photo seen here comes from the Foreign, Commonwealth, and Development Office in London, where representatives from the Small Volume Manufacturers met with MPs. Industry Minister Sarah Jones said: “We’re ensuring our carmakers go from strength to strength as we deliver our Plan for Change, and we’ve already secured landmark trade deals with the US and India, which will cut tariffs for the sector and create new export opportunities. Our modern Industrial Strategy will set out a long-term plan to support our manufacturers, including by creating the right conditions for increased investment, bringing growth, jobs, and opportunities to every part of the UK.”