Future Proofing the UK

Supply Chain

2

Intelligent

Mobility Fund

20132009 2015 2016

£1 billion in matched funding

£200 million in matched funding

£900 million fund

Annual budget of over £150 million

2017

Faraday Challenge

for development of

EV technology

£250 million

CAV testing

infrastructure

£200 million

matched

funding

Automotive

Investment

Organisation

Government commitment:

Overall spend circa £2.5bn to automotive

Britain’s Strong Economy

3

0

0.5

1

1.5

2

2.5

3

World’s 6th Largest Exporterof Total Goods and Services *

Source: UNCTAD 2017

$UStrn

*Current $US

0

200

400

600

800

1000

1200

1400

2017 – No 1 For Number Of FDI Projects

Ernst & Young Attractiveness Survey Europe 2018

0

10000

20000

30000

40000

50000

60000

2017 – No 1 For Jobs Created

Ernst & Young Europe Attractiveness Survey 2018

0

5

10

15

20

25

5th Largest Economy In The World 2017 GDP*

*GDP at current $US Source: IMF World Economic Outlook Database Apr 2018

$UStrn

UK Automotive Growth Rate Over Ten Years

4Source: ONS 2017: inflation adjusted values

*R&D data covers 2006-2015

61.03%

94.04%

258.49%*

0%

50%

100%

150%

200%

250%

300%

Manufacturing Turnover Exports Value R&D Expenditure

UK Automotive Industry - Overview

1.7m vehicles

manufactured in 2017

2.7m engines

produced in 2017

169,000 people

directly employed

in manufacturing

814,000 people

employed across UK

automotive industry

78% of UK-built cars are exported

World’s largest

producer of

luxury cars

25,000 new jobs to be

created in automotive

manufacturing to

build connected &

autonomous vehicles

UK auto industry

turnover £71.6 billion

5*SMMT

UK Car and Engine Production

6

0

0.5

1

1.5

2

2.5

3

Pro

du

cti

on

Vo

lum

e in

Milli

on

s

Car Production Engine Production

*Source SMMT 2018

• 1.67 million cars were produced in 2017, which is the second highest output in 17

years

• 2.7m engines were produced in 2017, up 6.9% compared to 2016 and an all-time high

since records began in 2009

UK Content

7

Average UK content in British-built cars£3.7 billion of business re-shored

36%

41%

44%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2011 2014 2017

8

UK Automotive Sector Strategy and Deal

Britain is open for business

9

No 1 major

European economy

for global talent

Ranked 5th in the

Global Innovation

Index

Lowest corporation

tax in G7

Falling to 17% by

2020

Patent Box: 10% tax

rate on profits from

R&D done in the UK

World-class

research base:

4 of world’s top 10

Universities,

18 of top 100

Top 10 economy for

global

competitiveness