House of Commons · Westminster Hall
07 May 2025 · 6 other contributors · 8,587 words
Opened by Rebecca Paul Con Reigate
Responding minister: Sarah Jones
Summarised by AI from the official record, so it can contain mistakes.
Rebecca Paul raised concerns about automotive manufacturing: employment in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The MP asks the Minister to confirm her plans to address challenges facing the automotive industry, particularly regarding the ZEV mandate targets and their implications for businesses.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
The automotive industry contributes £93 billion in turnover and employs around 0.8 million people across the UK, but it has seen a significant decline of 11.6% in February 2025, marking the 12th consecutive month of declining car production. Additionally, automotive manufacturers now face additional US tariff costs of around £1.9 billion, which will have a detrimental impact on competitiveness and export potential.
Highlights the importance of the automotive industry in regional economies, mentioning the £6.2 billion potential hit from US tariffs on the west midlands economy and urges for a deal to avoid job losses.
The automotive industry contributes £93 billion to the UK economy and provides high-skilled jobs. However, it faces challenges such as global competition, supply chain pressures, and energy costs that are twice as high as those in the EU.
Concerned about potential job cuts at BMW’s Mini plant due to high energy costs. Suggested the Government should announce greater flexibility for both luxury manufacturers like JLR and those making cars for mass markets. Asked about the lack of action on battery manufacturing under the previous Conservative government and received an answer highlighting regret over the ZEV mandate.
Commended the debate's focus on the automotive sector, highlighting its importance to British industry. Raised concerns about the lack of consumer interest in battery electric vehicles despite government support.
The hon. Member highlights a vibrant automotive sector in Northern Ireland providing employment and gross value added, stressing the importance of Government support for research and development to help businesses compete globally.
Thanks to hon. Members for Wolverhampton North East and Tipton and Wednesbury, highlights tariffs as the urgent issue, mentions energy costs affecting Nissan's plant, appreciates Lib Dem spokesperson's questions, thanks Minister for addressing concerns.
Government Response
Sarah JonesThe Minister for Industry
Welcomes the trade deal with India, reducing tariffs from 100% to 10%, which could lead to 22,000 high-end cars being sold into the Indian market. The Government will continue discussions about challenges in the automotive sector and aims to support companies like JLR and their supply chains. We are determined to help the automotive industry weather the storm through regular consultations with affected sectors and by launching initiatives such as the zero emission vehicle mandate consultation. The Government has increased flexibilities within the mandate until 2030 to ease the transition towards electric vehicles, allowing hybrid cars to be sold until 2035, and exempting supercar brands from the phase-out date in 2030. Additionally, the current statistic shows that there are now 76,500 public charging points with a target of 300,000 by the end of this Parliament. The Government is also working on the US trade deal to reduce tariffs and has committed over £2 billion in research and development funding until 2030 for zero emission vehicle manufacturing and supply chains. Acknowledges Members' points about tariffs, energy costs, and the ZEV mandate; commits to supporting the automotive sector through the industrial strategy and spending review, emphasizing plans for increasing demand and removing barriers.