The ESG Rating Center of Sina Finance offers 14 ESG services, including information, reports, training, and consulting, to help listed companies promote ESG concepts and enhance their sustainable development performance. Click to view the [ESG Rating Center Service Manual].
On July 28, a forum themed "Globalization-Driven: China-UK Automotive Cooperation and Investment" was successfully held in Shanghai, hosted by the UK Department for Business and Trade (DBT). Representatives from the governments, automotive industries, investment institutions, and professional service organizations of both China and the UK engaged in in-depth discussions on topics such as automotive industry cooperation, green transformation, and Chinese enterprises going global.
During the forum, Matt Smith, Head of International Affairs at the UK Society of Motor Manufacturers and Traders (SMMT), stated to Sina Finance that the UK automotive industry firmly supports the transition to zero-emission vehicles, but achieving this goal requires a development path that aligns more closely with market dynamics. Looking ahead, there remains vast potential for cooperation between China and the UK in areas such as new energy vehicle supply chains, software-defined vehicles, and power batteries.
Electric transformation needs to be more aligned with market demand
In recent years, the UK has consistently advanced the electrification of its automotive industry and established a Zero Emission Vehicle (ZEV) mandate. According to relevant policies, the sale of new petrol and diesel cars will be banned by 2035. Matt Smith noted that while the automotive industry fully supports the direction of achieving zero-emission transportation, reaching this goal requires balancing market demand and consumer acceptance. He said the UK government is currently conducting further consultations on ZEV-related policies, and the SMMT hopes to promote a more flexible path that better reflects market realities, ensuring policy pace aligns with consumer needs while maintaining the ultimate zero-emission target. In his view, promoting electric vehicle adoption requires not only continuous product launches from companies but also policy support to stimulate market demand. This includes both improving consumer purchase incentives for new energy vehicles and further strengthening the construction of charging infrastructure.
Matt Smith explained that previously, consumers were more concerned about driving range, but now, as vehicle performance continuously improves, people are more focused on whether they can charge conveniently and safely—so-called "charging anxiety." Only by further improving the public charging network will consumer acceptance of new energy vehicles continue to rise.
Greater opportunities for China-UK new energy vehicle supply chain cooperation
Discussing China-UK automotive industry cooperation, Matt Smith believes that a solid foundation for collaboration has already been established. In recent years, Chinese companies such as Geely, Chery, and Envision Energy have been increasing their investment in the UK. Among them, Geely's Lotus and London Electric Vehicle Company (LEVC) have long operated manufacturing operations in the UK; Chery recently announced plans to set up its European headquarters in Liverpool; and Envision Energy has collaborated with Nissan for an extended period on power battery manufacturing in the UK. Building on this, as the UK's new energy vehicle industry continues to develop, local supply chain demand is also growing. Matt Smith revealed that, according to SMMT estimates, by 2030, the UK automotive industry will create approximately 4.6 billion pounds in new market opportunities in the new energy vehicle components and supply chain sector. An increasing number of UK vehicle manufacturers seek to procure locally produced new energy vehicle parts, which opens up new collaboration opportunities for international suppliers, including those from China. He stated that the electric transformation will further drive investment in power batteries, key components, and related industrial chains, and there remains vast potential for future cooperation between China and the UK.
Innovation will be a key focus for the next phase of cooperation
Beyond supply chain cooperation, Matt Smith believes that innovative capacity is the UK automotive industry's greatest strength and a crucial direction for future collaboration. He noted that the UK has long held a competitive advantage in automotive design, engineering R&D, and technological innovation, particularly having accumulated deep experience in high-end automotive engineering. The fact that most Formula 1 teams base their R&D facilities in the UK reflects the country's leading capabilities in high-end automotive technology development. Simultaneously, as the automotive industry accelerates toward intelligence and electrification, areas like software-defined vehicles, next-generation power batteries, and semiconductor design are becoming new focal points for cooperation. Matt Smith expressed that the UK welcomes more international companies to invest locally and hopes more Chinese enterprises will leverage the UK's mature innovation ecosystem and internationalized industrial environment to conduct R&D, engineering, and manufacturing operations there for long-term growth.
Decarbonization has become a key component of industrial competitiveness
Regarding how to maintain industrial competitiveness while advancing decarbonization, Matt Smith believes the two are not contradictory but mutually reinforcing. He said that future automotive competition will not only hinge on the product itself but also on whether the manufacturing process is greener and lower in carbon. In recent years, UK automotive manufacturers have steadily increased their use of renewable energy, with over half of the UK's national electricity supply now coming from renewable sources. In his view, green manufacturing has become a vital part of the automotive industry's competitiveness. As the new energy vehicle market continues to expand, green energy, low-carbon manufacturing, and technological innovation will jointly drive the automotive industry into a new development phase.
Concluding the interview, Matt Smith stated that the UK new energy vehicle market continues to grow rapidly. Last year, electric vehicles accounted for about 24% of the UK's new car market, and the market size is expected to grow by approximately 20% more this year. As consumer acceptance steadily rises, new energy vehicles will enjoy even broader development space in the UK, while cooperation between China and the UK in areas such as industrial chains, innovative R&D, and green transformation will also encounter new opportunities for growth.