What does the UK’s new Industrial Strategy mean for you and your car buying prospects?
June 24, 2025 by Siobhan Doyle
Car changing is a big deal
The government has just launched a new Industrial Strategy. What does this mean for the automotive industry and you?
Are you a car lover wondering how the UK government is protecting the industry? The government has launched a new Industrial Strategy, and it could be a game changer for the automotive industry, and for you.
The UK wants to climb back into the top 15 car-producing countries in the world by 2030. Why? Because making more cars here means more jobs, investment, and innovation to help build more electric cars. Industry experts say it could boost the economy by a whopping £15bn over the next 10 years.
But there’s a catch: it’ll only work if the government follows through on a few big promises.
What’s in the Industrial Strategy?
This new Industrial Strategy is a ten-year plan that aims to boost investment, create good skilled jobs, and “make Britain the best place to do business” by tackling two of the biggest barriers facing UK industry: high electricity prices and long waits for grid connections.
UK automotive manufacturers face significantly higher energy costs compared to their EU counterparts, with prices around 59% higher than the EU average. This disparity is largely thanks to higher energy taxes and network costs in the UK.
To tackle this, from 2027, a new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per MWh for over 7,000 electricity-intensive businesses in manufacturing sectors, including automotive.
This new scheme could do wonders for the automotive industry which, in turn, could ripple down to consumers.
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Why it matters to you
Let’s break down how this new initiative will affect you as a driver, electric car shopper, or taxpayer:
1) Electric cars could get cheaper
Manufacturers have been eating up the costs of discounts just to keep EV sales going – they’ve racked up a £6.5bn bill doing this. But that’s not sustainable.
The industry wants to slash VAT on electric cars, remove extra taxes such as the Expensive Car Supplement for cars over £40,000, and help find incentives so that more people can afford to make the switch.
In other words: if the government listens, your next electric car could be a lot more affordable.
2) Charging your electric car might get easier
One of the biggest complaints about electric cars? Charging. The plan includes a push to guarantee a “right to charge” – meaning better, faster, and more widespread public charging infrastructure.
In fact, the government recently announced plans to roll out over 100,000 new public EV chargepoints across England.
3) Energy costs are out of control, and that hurts everyone
Right now, the UK carmakers are paying more than double the average electricity prices in Europe. That makes it harder to compete, and those costs trickle down to consumers. The strategy aims to cut these energy costs, which could help keep car prices in check and encourage more UK-made models.
4) More jobs, skills and opportunities
This isn’t just about cars – it’s also about economic growth. If this works, it’ll mean more skilled jobs across the country, especially in advanced manufacturing, green tech, and electric car innovation. That’s not just good for car companies: it’s also good for communities.
What needs to happen next?
The Society of Motor Manufacturers and Traders (SMMT) has a to-do list for the government, which include:
- Boosting EV incentives
- Cutting energy bills for manufacturers
- Improving on charging infrastructure
- Expanding green jobs and training
- Making smart trade deals (like with the US and India)
- Strengthening ties with the EU to help exports
Their message? “Great plan – now let’s actually do it. Fast.”
Indeed, the UK’s new Industrial Strategy is a big moment for the automotive industry. If it delivers, it could mean cheaper EVs, better charging access, more UK-made cars, and new job opportunities.
But it all depends on how quickly the government acts. The next few years will decide if the UK becomes a global car powerhouse again… or misses the turn.
Car change? Carwow!
Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.
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