Britain’s car industry faces an existential crisis. High energy costs, Chinese competition and US tariffs threaten a sector that contributes £47 billion in gross value added to the economy in 2023 and supports half a million jobs. Without decisive action, we risk losing domestic mass car production entirely. 

In this policy insight, we outline a comprehensive plan to secure the future of British car manufacturing through the electric vehicle transition. From immediate interventions to cut energy costs and stimulate demand, to long-term strategies for skills development and R&D investment, we demonstrate how coordinated government action can transform challenges into opportunities and position Britain as a leader in EV technology.