SMMT urges multi-year government support to scale UK automotive R&D into production
In a survey of 31 SMMT members, 83.9% said stronger government support and lower costs would make them more likely to begin or expand UK research, development and innovation (RD&I) investment over the next five years. The trade body wants a funded pathway from early-stage research to pilot manufacturing and scale-up ahead of next year's Spending Review.
The Society of Motor Manufacturers and Traders (SMMT) published a report, Turning Automotive Innovation into UK Investment, on 4 November 2026. In it, SMMT argues that Britain could turn its automotive innovation strengths into investment, high-value jobs and growth with targeted government support and lower business costs. SMMT says the sector already invests £5.3 billion a year in RD&I in the UK.
The report is based on a survey of 31 SMMT members specialising in automotive RD&I. They comprised six high-volume vehicle manufacturers, 14 advanced component and propulsion technology suppliers, seven software and services providers, and four luxury, performance or low-volume vehicle makers. Of those surveyed, 83.9% said they would be more likely to begin or expand UK RD&I investment over the next five years if government support were stronger and costs lower. That figure includes 38.7% who said they would be significantly more likely. These are stated intentions, not committed investment.
Respondents said the biggest barrier to growth was the difficulty of scaling new technology from the lab to commercial production in the UK. Asked about the advantages of UK-based RD&I, where they could pick more than one answer, 74.2% cited the talent pool, 58.0% collaboration with universities and 52.5% government funding support.
Ahead of the UK's 10 Year Plan, which is due for next year's Spending Review, SMMT is urging government to prioritise a targeted, multi-year pathway. This would take early-stage automotive RD&I into demonstration, pilot manufacturing and scale-up. SMMT also says lower industrial energy costs and faster delivery of grid infrastructure would strengthen the UK's proposition, particularly for energy-intensive advanced manufacturing.
SMMT chief executive Mike Hawes said: "But our globally renowned innovation capabilities are only half the opportunity – we must also make the UK a place where ideas are turned into production." He added that long-term funding, access to growth finance and competitive energy costs could secure more of the economic benefits of British breakthroughs in the UK rather than overseas.
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