BEIS Committee takes further evidence on electric vehicles: developing the market and infrastructure

The Business, Energy and Industrial Strategy Select Committee continued its evidence sessions today on the subject of electric vehicles: developing the market and infrastructure. 

Below is a brief summary of a few points of interest. A full transcript of the session will be sent as soon as it is available. 

Witnesses: 
Gareth Dunsmore, Electric Vehicle Director, Nissan Europe 
Ian Robertson, Member of the Board of Management, BMW AG, BMW
Mike Kerslake, Technical Manager, BYD UK
Tony Walker, Managing Director, Toyota Motor Europe


Anna Turley MP asked about the biggest challenges for the production of electric vehicles, to which all the witnesses explained the industry from their companies' points of view. 

Rachel Reeves MP (Chair) asked how easy it would be to ramp up production in the UK. Tony Walker thought 2040 was a challenging target, but Ian Robertson thought 2040 was achievable.

Replying to Mark Pawsey MP, Tony Walker didn’t agree that hybrid technology was a short-term fix ahead of full battery technology. He thought batteries would continue to be expensive. However, Gareth Dunsmore said Nissan was keen to make a step forward towards battery-only vehicles.

Peter Kyle MP asked about government policies. Tony Walker said there were possible targets in relation to fleet average emissions, percentage of sales, electrified options in every model and time-based targets.

Mr Kyle asked if there was a lack of coordination between government departments involved in the industry. Mike Kerslake thought there was an opportunity to improve connection between departments, particularly in relation to air quality. Ian Robertson said there could be regulations in town planning to ensure new infrastructure and housing projects incorporated charging facilities.

Drew Hendry MP asked how the investment environment in the UK compared with abroad. Ian Robertson pointed out there was an issue regarding volume and demand in the UK. Europe was lagging behind South Korea and China in terms of battery cell production and there were opportunities on that front. But because of advances in technology, investment had to be on the basis of early gains.

Tony Walker said the UK was a good place to make cars because of good labour relations and flexibility. But there was not a big enough market. Mike Kerslake told the committee the strong R&D links in the UK meant BYD was about to embark on an Innovate UK-funded partnership with UK companies. Such things created a more fertile environment for manufacturing here.

Replying to Drew Hendry, Ian Robertson said there was nothing on the political front, including Brexit, that was stopping progress in the UK. But new work was always put out to competition within BMW’s plants throughout the world.

Mark Pawsey MP asked about the supply chain and Vernon Coaker MP questioned the witnesses about prospects for jobs. Ian Robertson said car plants nowadays were more flexible to changes than in the past. Tony Walker said Toyota was moving from being just a car provider to a mobility services company. It boiled down to being productive and competitive.

Stephen Kerr MP asked about end-of-life disposal, to which the witnesses agreed there was potential for a thriving second-life battery market.