The North East Automotive Alliance (NEAA) has issued a renewed call for urgent Government intervention to support what it describes as a "strategic national asset"—the region's automotive sector. Amid widespread industry anxiety over the impact of the Zero Emission Vehicle (ZEV) mandate, NEAA CEO Paul Butler has urged policymakers to address EV sales rules, energy supply, and the UK's trading relationship with the European Union.
Key Demands from the NEAA
Speaking on behalf of the North East cluster—the largest automotive cluster in the UK, home to embattled carmaker Nissan—Butler stated: "The NEAA supports industry calls for decisive action to review the ZEV Mandate, to secure a sustainable long-term trading relationship with the EU, to address industrial energy costs and accelerate delivery of the Industrial Strategy. Getting these fundamentals right is critical to protecting jobs, attracting investment, growing exports, and ensuring the North East and wider UK remains a world-leading location for automotive manufacturing and innovation."
The NEAA believes the North East is uniquely positioned to lead the UK's transition to electrification, but only if an investment-friendly and competitive environment is cultivated. The call follows a major national survey by the Society of Motor Manufacturers and Traders (SMMT), which identified key barriers the Government must tackle.
Challenges Highlighted by SMMT Survey
The SMMT survey pinpointed the ZEV mandate, securing fair UK-EU trade, and reducing underlying energy and business costs as critical issues shaping investment decisions. The ZEV mandate is considered the most pressing challenge, forcing manufacturers like Nissan to subsidise the market at unsustainable levels because demand lags behind the trajectory needed to meet 2030 targets.
Pressure from the rules is expected to intensify in January next year when annual targets rise to 38% for battery electric vehicle sales for cars and 34% for vans. Current market share stands at approximately 24% for cars and 9.5% for vans. The SMMT reports that brands have already spent more than £12 billion on discounts—money that could have otherwise supported new models, jobs, and investment.
EU Trade and Energy Costs
In addition to rising employment and energy costs, the NEAA underscored the threat posed by the European Commission's 'Made in Europe' rules, which effectively render UK automotive products uncompetitive in most of the European market unless the EU agrees to recognise UK products as "assembled in the EU." Furthermore, early next year, tightened rules of origin under the EU-UK Trade and Cooperation Agreement will trigger a 10% tariff on 70% of battery electric and plug-in hybrid models sold in Europe.
Mike Hawes, SMMT chief executive, commented: "UK Automotive can drive growth, innovation and net zero, but only if the right decisions are taken now. The Industrial Strategy sets out a plan, but delivery is now what matters. We need open trade with Europe, competitive conditions at home, and a realistic route to grow zero emission vehicle uptake. Reforming the ZEV Mandate is not about weakening ambition; it is about making the transition achievable, protecting investment and ensuring the UK remains a place where automotive businesses can build, sell, export and grow. The window for action is closing, which means we cannot wait for lengthy discussions."
Urgency for Government Action
The NEAA's call echoes similar announcements at the national level, emphasising the need for swift Government action to protect the automotive sector, which is a cornerstone of the UK economy. Without decisive measures, the region's ability to attract investment, maintain jobs, and lead the electrification transition remains at risk.
