REGULATORY LANDSCAPE: Regulation is one 12 of the major drivers of change within the automotive sector; changes happening at almost every level are forcing an evolution of the sector

THE INNOVATION GAME: 34 David Moss, Nissan's Vice President, Vehicle Design and Development, discusses LCV innovation The UK automotive sector operates in a unique environment, with strategic alignment between industry and government support

Ian Constance, While the internal combustion chief executive engine will remain part of the of the Advanced Propulsion Centre automotive ecosystem for some time to come, there is an increasing need to conserve fuel and minimise emissions lobal climate-change Europe. The UK automotive sector common technical interest. while maintaining compelling and air-quality operates in a unique environment, At the APC we have identified consumer propositions. agendas are driving with strategic alignment between a number of opportunity areas This is leading to increased rapid technological industry and government support. that align strong capability and electrification of the vehicle change within The UK combines world-leading good potential for growth in powertrain, which in turn the automotive research, world-renowned organisations operating in the UK is disrupting incumbent sector. This, in aptitude for innovation and with likely market demand. These supply chains, and providing turn, is creating world-class manufacturing provide the potential for the UK opportunities for organisations new opportunities productivity. to assert a strong future supply- willing to embrace change. globally, as Combining these advantages chain position, given suitable Organisations operating international, in a collaborative approach investment. Identifying these in the UK can build upon the national and local underpins the aims of the opportunities is a step towards advantages and capabilities regulations drive Advanced Propulsion Centre (APC) providing a foundation for further afforded by the British action on CO2 emissions and programme. The APC co-invests dialogue and focused support, to automotive sector, allowing other air pollutants. At the same in collaborative research and build on existing advantages in them to capitalise upon these time, technological evolution development projects, building these areas. technology-led disruptions to is disrupting many sectors. upon UK government investments Our programmes explore existing supply-chain positions. Automotive, for example, is seeing made via the Engineering and the opportunities arising from It is clear, however, that a huge push for the long-term Physical Sciences Research strategic technologies identified international competition development of connected and Council and Innovate UK, to by the Automotive Council. Aside for these opportunities is autonomous vehicles. accelerate the development of from the internal combustion fierce and that the incumbent Fortunately, the UK is well low-carbon and low-emissions engine, these programmes supply chain is very strong. placed to capitalise on these technologies towards production. support development in electric The UK must therefore act trends. The UK market for low- In addition, the APC is facilitating machines and power electronics, quickly and use collaboration carbon and low-emissions broader collaboration through energy storage and management, to mount an effective challenge,

technologies is accelerating the Spokes network, which draws and lightweight vehicle and if these opportunities are not LOW CARBON VEHICLES: THE ROAD TO A CLEANER FUTURE faster than many others in together communities with a powertrain structures. to turn into threats. 3 THE ADVANCED CONTENTS PROPULSION CENTRE

The Advanced Propulsion Centre (APC) was formed in 2013 from a commitment between the Government and the automotive 6 10 12 industry through the Automotive Council to position the UK as a global centre of excellence Industry Outlook Key LCV innovations The regulatory for low-carbon powertrain over time landscape development and production. APC is a central pillar of the industrial strategy created by the Automotive Council.

The APC is a private limited company, an industry-wide 16 22 24 collaboration of innovators and producers of low-carbon propulsion systems. It facilitates UK investment in low Political will, the Investment in low partnerships between those carbon technologies lifeblood of LCV carbon innovations who have good ideas and those who can bring them to market. The services provided by the APC enable projects that provide profitable growth and sustainable opportunities for the partners involved. Each 26 28 30 programme enhances the UK’s position as a “propulsion nation” and contributes to the country’s Funding innovation Bridging the Simon Edmonds economic prosperity. in the UK skills gap

The Government and industry have each committed to provide £500 million to the APC during its ten-year programme. The activity in this £1 billion project will be delivered through a small 32 34 36 team working across the UK from a central hub located at the University of Warwick and Drive to the Future The Innovation Investment in regional Spoke locations. Game opportunities Find out more about the APC at www.apcuk.co.uk.

39 42 44

Why the UK is an Moving forward: What might happen? automotive leader building on our strengths PUBLISHING MANAGER: Maram Alkadhi DESIGNERS: Giulia Flamini, Elisabetta Calabritto 46 48 COMMISSIONING EDITOR: Felicia Jackson CONTRIBUTORS: Looking Forward Innovation Paul Sillers, Celestine Cheong and R&D ecosystem he UK remains in companies and mainstream thermal propulsion system”, pole position to take manufacturers building vehicles explains Jackson. advantage of the and their powertrain components The engine in a normal growth in low-carbon here in the UK. Much of this passenger vehicle operates at vehicles (LCVs), a product is exported and plays a a maximum of around 33 per global industry that strong role in the UK economy. We cent, while Formula One engines has been buoyed by The UK has have some of the most productive achieve closer to 50 per cent. “So a focus on cutting car plants in the world, and our there is considerable scope to carbon from our had a leading technologies are at the core of improve,” he says, believing that roads and meeting vehicles manufactured globally.” around 60 per cent is, perhaps, tough targets to role in the achievable in the medium term. clean our air. In the SUPPLY CHAIN BOOST While the UK is home to many UK, for instance, development One area in which the UK does global automotive players, there are plans for an 80 per cent and struggle is its lack of tier one many of the other companies reduction in the C02 produced suppliers, which in the automotive that have pushed the UK to the by transport by 2050 – and that introduction industry means those key forefront of LCV technology are means huge opportunities for businesses that integrate new SMEs and University spin-outs. innovative businesses. of low-carbon technologies into packages that These include Edinburgh-based “The UK has had a leading the vehicle manufacturers can Celtic Renewables, which is role in the development and vehicles incorporate into their products. commercialising Biobutanol – introduction of low-carbon This is one of the issues addressed made from the residues of the vehicles,” says Professor David Professor by a recent capability report Scottish malt whisky industry – Greenwood of WMG at the David Greenwood into Low Carbon Automotive as a new . University of Warwick. “We have a Propulsion Technologies from the Elsewhere, Controlled Power very strong research community, Advanced Propulsion Centre – a Technologies is developing a new excellent design-engineering decade-long, £1 billion partnership A key objective of the Advanced generation of technologies for between the Government and Propulsion Centre has been more affordable “mild” hybrid the automotive industry. The to help develop these supply- vehicles, while Tevva is working report talks of a technology- chain capabilities by attracting on the first range-extended urban led disruption of existing supply international tier one companies delivery truck. chains, which, coupled with to set up in the UK, building Another key factor in the UK, the UK’s resurgent vehicle- links with suppliers in adjacent continues Jackson, is “the strong From hybrids to hydrogen fuel cells, efficient manufacturing sector, is creating industries and helping small working relationship between engines to lightweight bodies, the automotive a window of opportunity for UK and medium-sized enterprises industry and government and industry is changing, responding to pressure supply businesses. But, warns the (SMEs) grow their capabilities. how it supports and accelerates to create a new generation of vehicles that are report, “the competition is fierce It is the symbiotic relationship research and development so it and the UK supply chain needs to between every element of the can have real impact”. cleaner and more sustainable act quickly”. supply chain that means each new The Advanced Propulsion breakthrough is of benefit to the Centre has created a Spokes UK automotive sector as a whole. Network charged with bringing academic and industrial research SCIENTIFIC EXPERTISE and development communities The UK has proved adept at together to collaborate in all “exploiting its science base”, aspects of research, from according to Neville Jackson, Chief fundamental science through to Technology and Innovation Officer product industrialisation. at the R&D organisation Ricardo. The Advanced Propulsion “The next generation of battery Centre Spoke communities act chemicals, lightweight materials in a coordinated way as ‘centres and more efficient combustion of excellence’ throughout the engines are all areas in which the UK, with the Network providing a UK excels”, he says, “with the consolidated national resource of technology often developed on facilities and expertise. The spokes the back of our existing expertise are designed to provide access to in Aerospace and Formula One. the best expertise and facilities the Improving the combustion UK has to offer for each of the key engine involves engineers taking strategic technologies for the a holistic approach, optimising automotive industry. how all the parts of the engine And it is this focus on

THE UK LEADS THE LCV CHARGE work together and then reclaiming improvements that has led to a THE UK LEADS THE LCV CHARGE the waste heat – something renaissance in global exports. Both 6 THE UK LEADS THE LCV CHARGE that’s often referred to as a Indian car manufacturer Tata and 7 Chinese automotive giant Changan to switch from petrol to electric. have set up technology innovation “And for heavy-duty transport, centres in the West Midlands, you need to start looking at more ensuring the UK’s DNA is now efficient combustion engines and found in automotive products all more sustainable, low-carbon over the world. fuel.” Meanwhile, Greenwood observes: LOW-CARBON FUTURE “I hope we don’t see a short-term According to Jackson: “There is rejection of diesel technology a whole range of things we need as a result of the VW scandal – to look at, from electrification particularly as new diesel vehicles through to more efficient arguably represent a cost/benefit combustion engines and low- solution to vehicle cost and carbon sustainable fuels. emissions reduction. “It’s all about different “We will see electric motors and applications. If you want to drive power electronics get better and around the city, with low speeds, we’ll see a continuing improvement low power and relatively low in battery technologies – all of energy requirements, a battery- which will lead to cheaper and based vehicle makes a lot of longer range electric and hybrid sense,” he says. An employee vehicles.” fits a part However, if you want to drive to the inside Developments that are all good between cities, he says, a hybrid of a Range news for the consumer, as well as Rover Sport gives you the range and the option SUV the UK’s automotive sector.

THE UK LEADS THE LCV CHARGE A general view of the driverless 'Lutz Pathfinder' 8 pod vehicle DID YOU KNOW? DID YOU KNOW? DID YOU KNOW? TESLA HONDA CLARITY In 2003 Tesla According to the European Some manufacturers claim that At the 2015 Motors was founded In 2008, Honda introduced the FCX Environment Agency (EEA), the UK currently produces only half Paris COP21 by Elon Musk. In the average emissions level the number of engineers it needs conference, the 2008 they released Clarity which was available for lease of a new car sold in 2015 was to meet demand. UK government their first car which 119.6g of CO per kilometre, reaffirmed its used lithium ion in the US, Japan 2 and Europe. significantly below the 2015 commitment for batteries. target of 130g. almost all and to be zero emission by 2050.

BMW I3 In 2013 The BMW i3 was launched with the PC200-8 additional option of a In 2008 Komatsu Ltd. petrol range extender launched the PC200-8 and featured lightweight WRIGHT excavator, the world's composite materials to DID YOU KNOW? ELECTROCITY first hybrid vehicle used increase fuel eiciency. The first hybrid in construction. KINETIC ENERGY electric bus entered RECOVERY SYSTEM In 2001, the UK into service in The first Kinetic government London. Six Wright Energy Recovery changed Electrocity single System was used in vehicle excise deckers were ordered the 2009 Formula duty and taxed in March 2005 to One season. the amount of operate on route 360. CO2 emitted rather than the engine size.

FORD ECOBOOST In 2009 the first three- TOYOTA MIRAI cylinder Ford EcoBoost engine Toyota’s was produced achieving powered Mirai went approximately 20% better on sale in Japan fuel eiciency and 15% reduced in 2014 and is greenhouse emissions. scheduled for sale in Europe and DID YOU KNOW? America mid-2015.

By 2020 the SMMT predict that the STOP/START UK will be making Given the more than two success of stop/ HYDROGEN BUSES million cars per start engines Between 2004 and year, higher than in hybrid 2007, three trial the all-time Improved vehicles, car fuel cell powered record of 1.92 energy manufacturers Mercedes-Benz Citaros million in 1972. systems incorporated were used on the RV1 X gen the technology route in London. INTERNET into internal OF Increased combustion NISSAN LEAF APC 3 THINGS efficiency in engines. NISSAN LEAF In 2010 In March 2015, internal the Nissan LEAF was APC 2 The APC awarded combustion launched proving £30 million to Developments engines electric vehicles In November 2014, The APC four projects. in fuel cell could become viable APC 1 technology in the mass market. awarded £16 In April 2014, Increased As of 2014, Nissan had million to two use of Self driving The APC awarded Improved sold 158,000 LEAFs projects. lightweight vehicles £29 million to power around the world. materials four projects. 3rd gen Improved electronics biofuels energy and electrical recovery and machine KEY LCV INNOVATIONS OVER TIME KEY LCV INNOVATIONS OVER TIME storage systems INTERNAL COMBUSTION ENGINES EMERGE AS THE DOMINANT TECHNOLOGY systems 10 11 2011 2013 2012 2015 2014 2010 2001 2007 2030 2050 2003 2005 2002 2008 2006 2009 2004 2040 2000 2020 lobally, the international community is moving towards ratification of the UNFCCC’s 2015 Paris Agreement, the world’s first comprehensive THE REGULATORY climate change agreement. This would see countries enact legislation to peak emissions, and keep emissions below the point of causing 2°C warming. In September 2016, both the US LANDSCAPE and China ratified the agreement prior to the G20 summit, taking ratification from 1 per cent of Regulation is one of the major drivers of global emissions to 37 per cent. And, while individual countries change within the automotive sector, and may take their own approaches to there are changes happening at almost every role over time. Electrification of cutting emissions, transport is a level, forcing an evolution of the sector transport through battery-electric, major sector to be affected. hybrid or fuel-cell vehicles will Aside from the impact of the provide fundamental opportunity Paris Agreement, the EU has for reducing the carbon emissions already committed to cutting from light vehicles in particular. emissions by 40 per cent by 2030 has limits on the emissions of NOx There is no doubt that (based on 1990 levels). EU leaders and SOx, as well as particulates. the overwhelming trends in have also endorsed an 80 to 95 There are, however, likely to be automotive are for increased per cent reduction in emissions by increasingly robust regulations of efficiency, higher voltage 2050. A low-carbon roadmap has all emissions. electronics, lightweighting and been produced to show how this Following 2015’s controversies electrification. Add to that target could be achieved, which around the difference between the interest in the potential

includes binding targets on the lab-based CO2 emissions and of the internet and the level of emissions allowed from emissions from real-world growing connectedness of our new cars and vans. The EU also driving conditions, the European environment, and the change looks Commission is now looking to unstoppable. “We’re in the middle bring test centres under greater of a transport revolution, with scrutiny. Draft regulations suggest new energy vectors and a change the introduction of spot-checks in the way that we use vehicles – for manufacturers, as well as from ownership to mobility as a peer review between different service, and to newly autonomous industry and academia have British Prime national approval centres. They and connected vehicles,” says Minister come together to promote also request access to each car’s Denis Naberezhynkh, head of Ultra Theresa collaborative research and May and software protocols – an effort Low Emission Vehicles and ITS Chancellor, product development. Iwan Parry, What makes the to limit the future use of defeat- technology at the UK’s Transport Philip a principal consultant at TRL says: Hammond device software. Research Laboratory (TRL). visit a Jaguar “Because of a high level of OEM, UK market unique In the UK, the 2008 Climate It is the plethora of regulation Land Rover research and engineering skills, plant in Change Act committed the that impacts automotive; the West we can take risks and trial new is the way in which country to an 80 per cent cut in wherever a manufacturer Midlands technology, which could enable us emissions by 2050 (from a 1990 operates, compliance with the to leapfrog the competition and government, industry base). As part of the non-traded regulations of the key target develop in-country know-how.” and academia have sector (NTS), transport was markets must be reached. With According to Parry, who not covered by EU CO2 trading the confluence of domestic, works on the TRL’s GATEway come together to rules, so it is expected to play a regional and global regulation it (Greenwich Automated Transport larger role in the UK low-carbon appears as if the transition is an Environment) project, which is roadmap. While a large CO saving inevitability. testing driverless vehicles, “The promote collaborative 2 will come from increased fuel UK is held up as a good example

THE REGULATORY LANDSCAPE research and product efficiency, renewable energy COLLABORATIVE APPROACH of how governments can support THE REGULATORY LANDSCAPE (generating electricity) is expected What makes the UK market unique an open testing environment.” 12 development to play an increasingly large is the way in which government, He says that collaborative R&D 13 change, and a Government that is committed to staying ahead of the transport revolution. Not only is the Government creating frameworks that enable the industry to invest, but it is Getting regulation right supporting investment through a number of other means. and encouraging industry

INDUSTRY CHALLENGES development in a way that There are challenges that arise with all attempts to transform will enable the UK to lead the emissions base of the automotive industry. Lightweight this automotive transition materials, for example, can prove very expensive for could have a significant volume production. Batteries raise questions about rare economic impact earth elements, and there are regulations concerning safe transportation. Given the EU focus on recycling, the End- The new Bill is intended to provide GOVERNMENT FUNDING of-Life Vehicles (ELV) Directive a framework to underpin a shift Of course, success in these areas requires manufacturers to take in transport models, ensuring has demonstrably been dependent responsibility ensuring that safety standards, proposing on the wide-ranging collaborations vehicles are more recyclable. new approaches to insurance within consortia. One of the key Then there are issues around and liability and encouraging concerns for many stakeholders infrastructure for electrification further investment. has been the potential fallout and charging. Cars with advanced driver- from Brexit, and the impact As Erik Fairbairn, co-founder assistance features, such as on finance, skills and markets. and CEO of POD Point says, “The remote-control parking and Billions in European funds have challenge is going from today’s motorway assist, are expected been available (not least the £80 situation, in which there are not to be on sale in Britain in the billion in Horizon 2020 funds) and enough charge points, to where next two to four years, with the cross-country collaborations we need to be. We’re seeing automated and driverless between companies, academics plays a vital role in the industry’s we are already becoming one of this as part of the London vehicles expected on the roads and engineers have been crucial to success, saying, “It’s a way of the world’s leading centres for plan now – 20 per cent of parking any time from the mid-2020s the industry’s success. encouraging collaboration for the driverless car technology.” bays in any new development onwards. The government has A recent announcement development of market-facing Testing these vehicles in a living in London should have EV also announced a new fund to assuaged a good deal of that capabilities in this sector.” environment takes the concept charging installed.” enable councils to invest in new concern, when the Treasury It’s also crucial that such from fiction to reality and the goal Getting regulation right infrastructure technologies. announced it would underwrite projects highlight issues is to provide insights for vehicle and encouraging industry Parliamentary Under Secretary funding for approved Horizon 2020 around common standards for manufacturers, cities, commercial development in a way that of State for Transport Andrew projects applied for before the UK communication and security. An operators, legislators and insurers will enable the UK to lead this Jones said: “Britain has a proud leaves the EU – a commitment to understanding of these issues will to develop the legal framework automotive transition could have history of innovation and I am safeguard funding for research and be vital both for the development for the roll-out of autonomous a significant economic impact. delighted councils will be able innovation projects. of an effective legal framework mobility. Indeed, Parry says that According to the SMMT, it could to use this money to develop Secretary of State for Business, and for the reassurance of the it is this ability to bridge the gap potentially add £51 billion a year systems to make journeys Energy and Industrial Strategy Greg consumer. between blue-sky research and to the UK economy by 2030. easier and safer.” Clark said: “The Government’s As Sajid Javid, Secretary of a commercially viable modality – In the UK, not only has the Proposals include using commitment to our world-leading State for Communities and the understanding of what the real government established a new technology that will allow science and research base remains Local Government, said of the world benefits might be – that joint policy unit – the Centre vehicles to communicate with steadfast. By underwriting the Greenwich project: “Making makes the UK stand out. for Connected and Autonomous each other and roadside sensors significant Horizon 2020 grants driverless cars a reality is going The UK is rapidly becoming Vehicles (CCAV) but also, in to provide drivers with real-time we are showing the extent of to revolutionise our roads and a global test bed for transport the Modern Transport Bill, it is traffic information. Councils our commitment, standing travel – making journeys safer, technologies, due to a laying the foundation for the will also look at how warnings squarely behind our researchers faster, and more environmentally- combination of having a transport deployment of such driverless about changing weather and and scientists as they continue friendly. Very few countries can network that’s sufficiently vehicles. It was described by traffic conditions can be sent working with their European match our engineering excellence advanced so that technologies can then Transport Secretary Patrick directly to vehicles, so drivers partners to develop new

THE REGULATORY LANDSCAPE in the automotive sector or our make a considerable difference, McLoughlin as, “A bill to pave can plan ahead – helping deliver technologies… to pioneer everyday THE REGULATORY LANDSCAPE record of innovative research, a societal awareness of the the way for the technologies quicker, more efficient and innovations that will benefit all 14 and this announcement shows importance of, and need for, and transport of tomorrow.” safer journeys. hard-working Britons.” 15 ENGINES £161 MILLION GRANTED TO 122 TRACTION ELECTRIC MACHINES AND POWER ELECTRONICS TRACTION BATTERIES AND FUEL CELLS 7,284 ENGINE RELATED PROJECTS DURING 2010 TO 2015 5,577 Technology Maturity £122 MILLION Technology Maturity Principal Agency Number of Projects Total Grant Value £(m) 1993 Early Demonstrator Applied TOP PATENT FILERS 2010-2016: TOP PATENT FILERS 2010-2016: PATENTS FILED PER YEAR 1993-2013: £124 MILLION GRANTED TO 114 TRACTION Stage GRANTED TO 94 TRACTION BATTERIES BATTERY AND FUEL CELL RELATED 1994 T TRACTION ELECTRIC MACHINES POWER ELECTONICS OP P ELECTRIC MACHINE PROJECTS DURING 2010 TO 2015 ATE Early Stage EPSRC 22 £13 1995 NT

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2010-2016:2010-2016: Toyota Toyota TRACTIONTRACTION BATTERIES BATTERIES 12,530 12,530 Honda Honda

Intelligent Energy Intelligent Energy Hyundai Hyundai TOP PATENTTOP PATENT FILERS FILERS Tata Motor Tata Motor 2010-2016:2010-2016: SAIC Motor SAIC Motor FUEL CELLSFUEL CELLS Nissan Nissan Mann & HummelMann & Hummel

£34 MILLION£34 MILLION GRANTED GRANTED TO 29 TO 29 Sunrise PowerSunrise Power TRANSMISSION,TRANSMISSION, DRIVELINE DRIVELINE AND AND KINETIC KINETIC ENERGY ENERGY RECOVERY RECOVERY SYSTEMS SYSTEMS Denso Denso 11 11 14 14 TRANSMISSION,TRANSMISSION, DRIVELINE DRIVELINE AND KERS AND KERS 2,511 2,511 TOP PATENTTOP PATENT RELATEDRELATED PROJECTS PROJECTS DURING DURING 2010 TO 2010 2015 TO 2015 7 7 ACAL EnergyACAL Energy FILERSFILERS 2010-2016: 2010-2016: LG LG FLYWHEELFLYWHEEL KERS KERS TechnologyTechnology Maturity Maturity FAW AutomotiveFAW Automotive 57 57 HydraulicHydraulic Ford Ford 471 471 PATENTSPATENTS FILED FILEDPER YEAR PER 1993-2013:YEAR 1993-2013: Early EarlyDemonstratorDemonstratorAppliedApplied 10 10 DaihatsuDaihatsu KINETICKINETIC ENERGY ENERGY RECOVERY RECOVERY SYSTEM SYSTEM FlywheelFlywheel 39 39 Stage Stage DaimlerDaimler CEA CEA PrincipalPrinc Agencyipal Agency 391 391 GeneralGeneral Motors Motors KIER KIER Caterpillar Caterpillar Torotrak Spicer Off Highway Torotrak Changzhou Spicer Off Highway Changzhou Volvo Trucks Valeo Volvo Trucks Valeo XCMG XCMG LIT Motors LIT Motors JCB JCB Magna Powertrain Magna Powertrain Flybrid Flybrid GKN Hybrid Power GKN Hybrid Power Ricardo Ricardo EPSRC EPSRCInnovateInnovate UK UKAdvancedAdvanced PropulsionPropulsion

362 362 GeneralGeneral Electric Electric 2011

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BYD BYD Halla VisteonHalla Visteon Audi Audi Ford Ford

TRANSMISSIONSTRANSMISSIONS Aisin Aisin JKET JKET BMW BMW

Isuzu Isuzu NumberNumber of Projects of Projects Jatco Jatco RenaultRenault Denso Denso Mazda Mazda Suzuki Suzuki Scania Scania Nissan Nissan Toyota Toyota Hitachi Hitachi Kubota Kubota Honda Honda Renault Renault Daimler Daimler Porsche Porsche Hyundai Hyundai Komatsu Komatsu Mitsubishi Mitsubishi Schaeffler Schaeffler

Caterpillar Caterpillar Sony Sony

Hino Motors Hino Motors 282 282

Robert Bosch Robert Bosch SiemensSiemens Fuji Heavy Ind Fuji Heavy Ind 4 4 21 21 4 4 General Motors General Motors BYD BYD NTN Corporation NTN Corporation

PanasonicPanasonic Yazaki Yazaki Total GrantTotal Value Grant £(m) Value £(m) Hitachi Hitachi Porsche Porsche

1,533 1,533 475 475 17 17 BMW BMW Toshiba Toshiba £ £

Kia Kia LS Industrial LS Industrial 14 14

2,413 2,413 UK INVESTMENT IN LOW CARBON TECHNOLOGIES UK INVESTMENT IN LOW CARBON TECHNOLOGIES £ £ Audi Audi

Suzuki Suzuki

PATENTSPATENTS FILED FILEDPER YEAR PER 1993-2013:YEAR 1993-2013: £3 £3 208 208 109 109 VW VW Sanyo Sanyo TRANSMISSIONSTRANSMISSIONS 18 19

Sumitomo Sumitomo ENGINES £161 MILLION GRANTED TO 122 TRACTION ELECTRIC MACHINES AND POWER ELECTRONICS TRACTION BATTERIES AND FUEL CELLS LIGHTWEIGHT TECHNOLOGIES 7,284 ENGINE RELATED PROJECTS DURING 2010 TO 2015 5,577 Technology Maturity

£122 MILLION Technology Maturity Principal Agency Number of Projects Total Grant Value £(m) £101 MILLION Technology Maturity Principal Agency Number of Projects Total Grant Value £(m) 1993 Early Demonstrator Applied TOP PATENT FILERS 2010-2016: TOP PATENT FILERS 2010-2016: PATENTS FILED PER YEAR 1993-2013: £124 MILLION GRANTED TO 114 TRACTION Stage GRANTED TO 94 TRACTION BATTERIES BATTERY AND FUEL CELL RELATED GRANTED TO 68 1994 T TRACTION ELECTRIC MACHINES POWER ELECTONICS OP P ELECTRIC MACHINE PROJECTS DURING 2010 TO 2015 LIGHTWEIGHTING ATE Early Stage EPSRC 22 £13 1995 NT F AND POWER Schaeffler RELATED IL Early Stage EPSRC 19 £44 1996 E Technology Maturity

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1996

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2,959 Daimler 261 State Grid China BMW 2002 VW 342 PATENTS FILED PER YEAR 1993-2013: Number of Projects

2,766 Hyunday TRACTION ELECTRIC MACHINES Audi Toshiba 2003 Mazda Number of Projects Ford General Motors CEPRI

Panasonic TOP PATENT FILERS 2010-2016: TOP PATENT FILERS 2010-2016: Nissan Scania 55

46 61 7 LIGHTWEIGHT CARBON FIBRE LIGHTWEIGHT ALUMINIUM 2004 Schaeffler Mahle PATENTS FILED PER YEAR 1993-2013: Continental 336 ABB Group POWER ELECTRONICS Samsung Siemens COMPOSITE VEHICLE STRUCTURES VEHICLE STRUCTURES 2005 Caterpillar BMW 43 71 8

Hyundai 36 Daihatsu Total Grant Value £(m) 2006 VW Suzuki

Hitachi 367 660 Aisin Aisin PATENTS FILED PER YEAR 1993-2013: 43 2007 Isuzu S Tsinghua Uni

Foton Motor £ E FUEL CELLS IN 258 28 2008 G £ N Total Grant Value £(m) Honda Tonji University £5 3 E 302 2009 3: LS Industrial 01 148 2010 2 3- Nissan Zhejiang Uni Jatco 269 2011 99 68 1 £ Jiao Tong Uni

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2010-2016: Toyota TRACTION BATTERIES 12,530 74 Honda

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57 Honda Conglin Renault Daimler Porsche Ford 471 Hyundai Zephyros Hydraulic Westfalia PATENTS FILED PER YEAR 1993-2013: Early Demonstrator Applied 10 Daihatsu Sika Tech Kobe Steel

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2011 Samsung

2013

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PATENTS FILED PER YEAR 1993-2013: £3 208 109 VW

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2011

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Sumitomo aving recovered from movement of researchers and what appeared to be skilled employees is very important terminal decline at for both academia and industry, the end of the 1990s, and access to collaboration with the automotive European research institutes is at sector was then hit least as important as the money harder than most by which comes with it. the economic crash “We have already seen European of 2008. “In the case consortia reluctant to take on UK of the UK, it was a organisations due to uncertainty do-or-die moment,” over their future eligibility. We says Adam Chase, a hope this is a temporary situation.” director at the tech Another important consideration, consultancy, E4tech. “Concerted says Beasley, is that the UK’s action was needed, or the industry automotive success is in part risked disappearing altogether.” based on strong exports. The To survive, radical action was Government, he argues, will need needed, and the Automotive Low-carbon vehicles (LCVs) have to help companies comply with any Council was to prove a central new international legislation and player. Set up in 2009, and made reinvigorated an ailing sector and with trade agreements. up of senior figures from across political will, industry collaboration and Chase agrees: “It’s important the industry and government, touch environmental policies, the future is that the Government provides as it encouraged businesses and bright for UK automotive much certainty as possible and manufacturers to put aside their facilitates access to inter-global natural rivalries for the good of markets for UK innovators.” the sector as a whole. Another potential worry is that One of the Automotive Council’s European clear-air targets, which first important jobs was to a market for low-carbon vehicles, Sciences Research Council. have played such an important role coordinate the remaining key and supporting manufacturers This is followed by funding for in driving forward LCVs in the UK, industrial players to roadmap to develop and introduce them,” translational research from will have less impact post-Brexit. the future of the sector and says David Greenwood, professor Innovate UK, and culminates However, says Greenwood, “it is identifying which technologies of Advanced Propulsion Systems with financial backing around highly unlikely that the UK would

could be built upon to drive at the University of Warwick. commercialisation and A young David adopt vehicle emissions regulations the industry forward. Five key “The UK is unique in having industrialisation from the Cameron test which are significantly different to driving a low technologies were chosen: internal a well-networked automotive Advanced Propulsion Centre (APC). emission vehicle the EU, not least as vehicles are combustion engines; energy community, and a strong And it’s these continued rounds designed for large markets in order storage; intelligent mobility; dialogue between industry and of funding, suggests Chase, that, to achieve economy of scale, and lightweight vehicles; and electric government, which has put in “gave innovators the confidence it would be largely uneconomic for

machines and power electronics, place a world-leading support to start the journey, knowing that Consumer appeal based on vehicles’ CO2 emissions. manufacturers to produce UK- all areas that have proved crucial mechanism for the development it wasn’t just a one-shot thing.” Globally, the growth in LCVs It will likely also fall upon the specific derivatives. to the growth of LCVs. and deployment of new The results of the last round of shows no sign of slowing. Last Government to broker any deals “In practice the UK has had a technologies.” APC funding were announced in year, sales reached the one million around infrastructure issues, strong role in driving EU emissions Support network This mechanism begins with January 2016 and included grants mark for the first time, and a such as building a more advanced regulation, so if allowed to set “The UK Government has played early-stage research supported of £46.5 million to a zero-emitting recent report from HSBC predicts recharging network to support its own, they would likely end up an important role in both creating by the Engineering and Physical vehicles project from the London that by 2020, 8.65 million electric electric cars, and reinforcing very similar.” Taxi Corporation, £6 million to vehicles and 9.23 million hybrid the grid. The UK’s automotive industry the Morgan Motor Company to plug-ins will have been sold is in rude health once again but, develop hybrid and all-electric worldwide. Elsewhere, analysis by A post-Brexit world warns Beasley, there’s no room sports cars, and £5.4 million Bloomberg New Energy Finance But perhaps the biggest test for complacency. “Others are to a battery-pack generation has suggested that electric of the Government’s continued already looking at the UK and scheme from a consortium led by vehicles will be cheaper than commitment towards the industry trying to copy what we do. If we AGM Batteries. conventional cars, on a total-cost- will be the way it deals with any sit back and let it happen, they Without this type of funding, of-ownership basis, by 2022. post-Brexit fallout. will overtake and we will find It’s important that the argues Jon Beasley, the To take advantage of this, and to Access to the EU’s Horizon 2020 it very hard to re-establish the APC’s director of technology continue to meet climate-change programme has been a particularly advantages we have spent time Government provides as much and projects, research and targets, government intervention important source of research funds, and effort in building. demonstrator projects developed needs to keep stimulating interest says Greenwood, but he fears this “The UK needs to continue certainty as possible and in the UK would be snapped up by in LCVs among consumers, making may now change. And although to be seen as an attractive and foreign interests, and developed them more attractive to buy and the Government has said it will competitive place to do research,

POLITICAL WILL, THE LIFEBLOOD OF LCV facilitates access to inter-global and manufactured elsewhere, helping the industry move from underwrite any funding shortfall business and to invest in, and to POLITICAL WILL, THE LIFEBLOOD OF LCV resulting in lost opportunities “early adopters” to a mass market as a result of Brexit, in practical achieve this the sector will need 22 markets for UK innovators for the UK. with incentives such as taxation terms Greenwood warns that, “free continued government support.” 23 First £13m ‘IDP’ Catapult Centres: competition 2010-HVM launched 2012-Transport Systems

APC LAUNCHED IN 2013 Automotive 4 competitions and Innovate UK Council created £100m public investment to works with BIS, in 2010 industry and other date, 10 projects supported partners to build momentum in this Niche Vehicle £1billion total emerging sector Emerging LCV Network supported by investment industry comes As of 2015: £230m together for first Innovate UK and OLEV, a network invested in 220 projects time, supported by – total investment Innovate UK of UK-wide low volume specialist of over £450m. manufacturers

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020

First CENEX Platform ULCV Niche Vehicle Low Carbon LCV Impact 2016 APC Publish IDP1 IDP3 and 5 IDP10 LCV event estabilished demonstrator Network Truck Trial Report published UK Capability Report

FORECAST RETURNS ON UK INVESTMENT

£1 Invested £8-14 £20-34 Europe’s largest trial of LCVs undertaken, a £25m project with 350 First £28m vehicles driven over competition 1.5 million miles 10 years 15 years delivered in partnership with OLEV.

OLEV and Innovate THIS £41m OF SUPPORT IS FORECAST TO ADD... UK invest £11m in a By 2015, trial of low carbon OLEV have HGV technologies invested over £100m alongside Innovate UK EPSRC jointly £340 £820 invests £13m in million million the IDP series, delivering two

INVESTMENT IN LOW CARBON INNOVATIONS CARBON LOW IN INVESTMENT competitions for INNOVATIONS CARBON LOW IN INVESTMENT TRL 1-3 projects

24 over 10 years over 15 years 25 he UK automotive development of the wider UK Innovate UK (demonstrator/ Innovate UK established its these world-class entities in the sector is the most automotive industry. It consists of The Advanced Propulsion Centre businesses) and the Advanced Low Carbon Vehicles Platform UK with their breadth of expertise productive in Europe, over 2,000 companies contributing supported around £75 million1 Propulsion Centre (applied). back in 2007, with the highly and knowledge. Without them, with productivity an annual £4.3 billion direct to worth of projects early in 2016 Between 2015 and 2020, via successful IDP programme being LCV innovation would brake to around 50 per cent the UK economy. The sector has to the winners of its fourth- the Office of Low Emission a key element of that long term a standstill. higher than overall undoubtedly suffered significant round competition: projects to Vehicles alone, the Government approach to supporting the sector. UK manufacturing. setbacks in past decades but is develop new low-carbon and has committed to spending more Joint investment from OLEV, the BUILDING ON SUCCESS The sector comprises now undergoing a renaissance: 41 energy-efficient technology in the than £600 million to support Department for Business, Energy What is important in the UK nearly 3,000 per cent of the components in the automotive sector2: the uptake and manufacturing and Industrial Strategy and is that we continue to build businesses including average British-built car are now • £46.5 million for a The London of ultra-low emission vehicles Innovate UK has seen nearly 300 on our success and explore major vehicle sourced locally, up from 36 per Taxi Corporation project to (ULEVs) in the UK. This will ensure projects supported so far. The additional funding streams that manufacturers, cent in 2011. deliver a series of lightweight, that all cars and vans on UK 13th IDP competition is about to will help ideas reach the market. engine manufacturers R&D tax credits and the Patent zero-emission-capable, roads will effectively have zero open, with a further £24 million on There have been concerns over and supply-chain companies, as Box are important in supporting range-extended vehicles emissions by 2050. the table to support innovation in access to EU research funding well as the world-class Formula in-house research, rewarding the • £6 million to Morgan Motor OLEV and Innovate UK work the sector. following a vote for Brexit. Louise One sector. Together the industry development of new ideas and Company to develop heavily very closely together to fund Innovate UK’s low carbon vehicle Mothersole at Innovate UK says, employs around 163,000 people, intellectual property by providing downsized, fuel-efficient petrol R&D activity, a relationship that activity has already delivered real however, “there are hundreds supports a further 330,000 jobs corporation tax relief. engines coupled with the latest goes back to 2007. In April 2016 impact and supported business of millions of euros available indirectly and contributes £14.5 electrification technologies to OLEV and Innovate UK awarded growth across the UK. Examples each year for the automotive billion to the UK economy. INNOVATION THROUGH produce hybrid sports cars and £38 million for greener cars, include JLR’s REALCAR project sector’s advanced manufacturing, According to the Confederation COLLABORATION all-electric variants from their IDP12 and Lightweight and SMEs such as Bladon Jets, materials and digital businesses of British Industry, over 80 per The critical enabler for the • £5.4 million to a consortium led Vehicles competition. Transport Oxis Energy and Magnomatics to based in the UK, with over cent of the vehicles manufactured industry’s success, however, has by AGM Batteries to develop the minister Andrew Jones said of name a few. €100 million for research, in the UK today are exported, been the working relationship next generation of battery packs the awards at the time: “This Finally, support from the Niche development and innovation of and more than 50 per cent of between the Government and for high-performance LCVs competition continues our £600 Vehicle Network who fund smaller, on-vehicle technology for ultra- exports go to the EU. A survey industry, working closely together • £13.1 million to a project led by million commitment by 2020 to shorter term R&D projects from low emission, connected and undertaken by the Society of through the Automotive Council. Jaguar Land Rover to build up support the uptake of ULEVs, the UK’s buoyant niche vehicle autonomous vehicles from the Motor Manufacturers and Traders One of the key initiatives for the automotive turbocharger making journeys cheaper and manufacturers completes the EU’s Horizon 2020 initiative. Some earlier in 2016 reported a planned the Automotive Council and the supply chain in the UK greener, ensuring the nation is picture. organisations in the UK, including £225 million investment by SMMT Department for Business, Energy fit for the future.” OLEV is also One of the challenges for universities and industry (large supply-chain members over and Industrial Strategy (BEIS) has operating a “go ultra low cities automotive funding is that and small), have been incredibly 1 APC figures denote total project fund, not grant the next three years, as efforts been to improve the alignment of fund figures fund”, to encourage schemes that it can be capital intensive, successful in accessing this and continue to boost the British government support and funding incentivise low-carbon transport. and the products, and their are highly sought as collaboration content of vehicles built in the UK. throughout the innovation cycle. 2 These five projects are expected to create and Innovate UK and the Office for components, operate within a partners by their counterparts in protect 851 jobs and save over 4.2 million tonnes This approach is widely regarded Low Emission Vehicles (OLEV) at complex ecosystem. As well as Europe. The added value of the of CO2. They build on the 10 low carbon projects al- RESEARCH AND DEVELOPMENT as being one of the best aligned ready awarded funding by the Advanced Propulsion the same time announced a grant the well-established Innovate collaboration element for driving Manufacturing output is part government funding mechanisms Centre which are forecast to create 4,500 jobs and to a consortium including Jaguar UK IDP programme and smaller exports of products and services save 12 million tonnes of CO of the equation, but the UK in the world, and as a working 2 Land Rover and Nissan to receive competitions run in collaboration should not be underestimated as is also home to research and model for many countries. £1.7 million for “light-weighting” with the Niche Vehicle Network this is of much greater economic development (R&D) centres for This alignment of technology- technology – applying the science the Advanced Propulsion Centre value to the participants.” Jaguar Land Rover, Ford, Bentley, led research to manufacture behind F1 cars and space satellites also operates a Technology What makes the UK market Rolls-Royce, Nissan and many supply-chain support spans the to make passenger cars weigh less Developer Accelerator Programme, unique is the way in which more world-class players. At Engineering and Physical Sciences and be more fuel efficient. The specifically created to support government, industry and the same time, the supply chain Research Council (early stage/ results could reduce the weight of small and medium-sized academia have come together to has a critical role to play in the university research), through steel components in vehicles such technology developers with low- promote collaborative research as the Nissan LEAF by more than carbon propulsion technology and product development. Iwan half, potentially extending the that can be applied to the Parry, a principal consultant at distance a plug-in car can drive by automotive sector space. Global TRL, says: “Because of a high level up to 25 per cent. businesses should not ignore of OEM, high-level research and engineering skills, we can take risks and trial new technology, which could enable us to leapfrog the competition and develop in-country know-how.”

Autodesk, Loughborough University, University College London, the FUNDING INNOVATION IN THE UK IN FUNDING INNOVATION University of Bath and the THE UK IN FUNDING INNOVATION 26 University of Nottingham 27 the practical people who have to Perrin, director of the Institute the UK manufacturing industry make, repair and service them, for Advanced Manufacturing and and to help tackle the sector’s then we will have a problem.” Engineering and executive director shortfall in skills. The centre, of the Manufacturing and Materials which is part of the Government’s COLLABORATION IS KEY Engineering Research Centre. Catapult initiatives, provides an In academia, and specifically in This September the relationship opportunity through engineering the low carbon engineering niche goes into its third year intake and apprenticeships for those at UK universities, collaboration the first students will graduate in entering industry to acquire the between learning entities and June next year. “A lot of people skills needed for projects that, he paradox of the potential employers is seen as are interested in hiring them,” “are redefining manufacturing UK’s automotive the key factor in helping reconcile says Professor Perrin. “Some of techniques of the future, including sector is that despite the dearth of automotive skills them have already been offered those in the automotive sector unprecedented in the UK with the fiercely jobs. What I'm trying to do now, such as and intelligent output – last year competitive global landscape. having tested this different way of automation,” explains Atkinson. the UK built over 1.6 “To be able to survive stringent working, is look for ways we can But to get to the point of million vehicles and global competition, the UK expand the model and find new attracting school-leavers into 2.4 million engines – automotive industry needs to be partners to grow it.” apprenticeships or engineering the talent pool that continuously fully equipped with Stakeholders in the banking courses at universities, the seeds underpins engineering new knowledge, new technologies and investment community are of interest in STEM subjects have excellence in British- and most importantly new world- equally interested in the skills to be sewn at the earliest-possible built vehicles and juncture. That’s the strategy components is struggling to scale behind Shell’s raft of educational up for future growth, both in terms initiatives, which include of manufacture and research “Tomorrow's Engineers”, a national and development. £1 million programme endorsed “In the short term we need by the Department for Business, 2,500 people to fill immediate Energy and Industrial Strategy vacancies, and by 2020 we may provides 11 to 14-year-olds with need as many as 50,000 more With rapid technological advances transforming hands-on engineering experiences, people than currently work in the the industry, developing a workforce with careers information, and helps industry,” says Nigel Stein, chief cutting-edge skills will be the difference them appreciate the incredible executive of GKN in his foreword between success or failure for the UK sector range of opportunities that a to the Automotive Council’s report technical career can provide. on employers’ views of the jobs In specific recognition of and skills required for the UK Advanced Propulsion Centre low-carbon imperatives, Shell automotive industry. (APC). “The APC funding has recently launched a new school “The biggest challenge brought together projects at programme, “Energy Quest”, is the changing skill mix Nissan Sunderland, which by their familiarising students with STEM required in moving from collaborative nature have research leading class problem. “Ensuring that the subjects “in a fun and engaging Employees traditional engineering topics to institutes involved carrying out hard at work engineers,” says Rui UK has a new wave of skilled way” using workshops and mechatronics, computational industrial research. These include at the Jaguar Chen, professor in workers, adept at using the latest classroom-based modules that Ensuring that Land Rover methods, communications established universities such as plant low carbon power technologies, is crucial to ensuring help students get acquainted with systems and the electronics the UK has a Brunel, Newcastle and Warwick engineering at the UK automotive industry new energy sources and eco- domain,” says Professor Neville who are bringing their research the Department remains competitive and can friendly tech. Over the next three Jackson, chief technology and new wave of to help deliver new technology. of Aeronautical and Automotive continue to meet demand from years the programme will reach innovation officer at Ricardo UK, Zero Carbon Futures are working Engineering at Loughborough domestic and overseas markets,” more than 70,000 students in over the engineering, strategic and skilled workers, between the OEM (Nissan) and the University. “Current success will says David Atkinson, UK head of 650 schools. environmental consultancy. “It’s universities to develop curriculum- not be sustainable if the industry manufacturing at Lloyds Bank In a similar vein, independent a fundamentally important area, adept at using based learning to upskill staff lacks the right skills.” Commercial Banking. charity Imagineering Foundation which is why the Automotive who will have to implement the A compelling example of introduces 8 to 16-year-olds to the Council has a skills group.” the latest technology, as well as into the collaboration between academia INSPIRING THE NEXT GENERATION fascinating world of engineering “There is the challenge to learning of apprentices entering and industry was brought about A tangible example of this, which and technology through fun, make universities realise that technologies, the workplace.” when Coventry University and is captivating young minds, is hands-on activities. Key partners engineering degrees can no is crucial to However, the skills gap, Unipart teamed up to offer the work taking place at the are Jaguar Land Rover and National longer be siloed into mechanical, Dr. Herron adds, also goes far engineering students a new way state-of-the-art Lloyds Bank Grid, bound to the Foundation with electrical, or chemical” adds ensuring the beyond what is required for to acquire the skills employers Advanced Manufacturing Training a vision to “enthuse and nurture Dr Colin Herron, MD of the research, development and require. “Unipart, like a lot of Centre outside Coventry. Lloyds young engineers of the future”. consultancy Zero Carbon Futures UK automotive manufacturing supply chain. manufacturers, was finding Bank is the largest private- Activities include fairs and clubs and professor of practice at “Vehicles coming on the market barriers to grow their business, sector contributor to the centre for young people, much of them

BRIDGING THE SKILLS GAP Newcastle University. industry remains have got such a range of integrated and one of them was skills – a and is contributing £5 million reliant on after-school clubs BRIDGING THE SKILLS GAP He says part of the solution technologies that if someone isn’t problem across the whole sector over a five-year period as part run by volunteers, many of them 28 is being provided through the competitive translating the required skills to really,” explains Professor Carl of its commitment to support retired engineers. 29 There is no doubt that the UK supported 277 projects via its been strongly committed to its is one of the most interesting Low Carbon Vehicles Innovation support, and Edmonds expects SIMON markets for low carbon vehicles. Platform, with over 700 that support to continue. Obviously the country has a degree collaborators from around the UK. What really makes the UK most of technology readiness but it’s The impact of this investment is interesting however is the new EDMONDS, the combination of this readiness significant. An impact evaluation Modern Transport Bill, which is set with significant R&D strength, and report from last year showed to create a framework enabling DIRECTOR the ability to scale development that it had resulted in over £500 the UK to become a leader in that makes the UK unique. million of ‘follow on’ investment driverless and electric technology. Innovate UK is part of a secured by industry with up to In order to really transform a specialist innovation ecosystem 12,000 jobs created or protected market, a legal underpinning is which has been held up the over the next ten years. required to allow technology to Manufacturing world over as an example of how This support continues – this come to the forefront. This is to support the development of year alone Innovate UK will be especially critical for vehicles & Materials, an industry. There are various delivering over £110 million of reliant on satellite connectivity, elements of this: infrastructure new funding for low carbon and roadway sensors and the like – and government funding; world autonomous vehicles R&D with the question of liability is likely Innovate UK class science; skills and talent; our partners – OLEV, the APC to become a heated discussion. multiple, deep sources of funding and CCAV. By providing that framework at each innovation stage; networks What makes the low carbon ahead of the competition, and and exchanges across business, vehicle market in the UK so moving the UK forward in its science and finance; strong interesting is that four major development and deployment advisory and mentoring networks. social trends: electrification, of new technologies, there is an As Edmonds says, “In the UK automation, connectivity and opportunity for the UK to become it’s a very applied research world shared mobility – are aligning a real world leader. in this sector.” Innovate UK sits in with concerns about air pollution, And, while there have been the middle tier where companies climate change and resource discussions about the impact of take research and turn it into scarcity to have a significant Brexit on the automotive sector, viable products, where we co-fund impact on the automotive sector. and the LCV market in particular, development of projects. This is Low carbon vehicles have the the government has announced it often with technology supported potential to alter the traditional will support projects agreed under initially by the Engineering and energy model, and also the EU’s Horizon 2020 programme. Physical Sciences Research helping the transformation This matters because perhaps Council (EPRSC), which supports of transport mobility. the most important aspect of most research in the physical It is also having a direct impact such projects is the collaboration sciences in universities. on consumer habits, which makes which they require. An excellent example of this is it particularly exciting for Innovate That collaboration, between support Innovate UK has provided UK and its partners. academics, scientists, a recent spin-out from Imperial Given that the automotive engineers and industry has College, Impression Technologies sector has been seen for many always been a hallmark of the UK Ltd to develop a revolutionary years as a productive value add automotive sector and one of its aluminium forming process. It is for the UK, the government has greatest strengths. playing a vital role as a weight- saving, low emission technology in the new Aston Martin DB11. s the UK’s innovation It has built on 13 years of agency, Innovate UK advanced metallurgical and has a responsibility process research by the scientists to support and at Imperial College to create develop innovation complex, deep-drawn aluminium in key sectors of the pressings through a patented UK economy. Evolving technology called Hot Form out of the Technology Quench ™. It is a good example Strategy Board, of where a technology has been the agency was taken from pure research in the responsible for the science base and translated into a development of the commercial success with support Low Carbon Vehicle from Innovate UK and its partners (LCV) innovation platform. We at EPSRC and the Office for Low Workers on the SIMON EDMONDS SIMON spoke to Simon Edmonds about Emission Vehicles. EDMONDS SIMON assembly line at the future of the UK low carbon This is just one example. Jaguar Land Rover 30 vehicle market. Since 2007 the organisation has 31 port scenarios that show a range of options consistent with getting to 2050 at least cost. However, these are not forecasts or re- quired paths based on preference for any particular technology.” But with policy advisers remain- ing neutral on technology plat- forms, and manufacturers focused around product and infrastructure, is consumer behaviour adequately accounted for in the equation? Electrification was early out of the blocks, considerable, they’ll be far less “Just take London,” says Adam hydrogen’s a bit of a late bloomer – and by 2050 than alternatives, because the Chase, director of E4tech, a stra- electricity grid is already mature tegic sustainable energy consul- many vehicles won’t even need drivers. Who can say and embedded.” However, he tancy that collaborated on the what the automotive energy mix might be by then? acknowledges that the move to Advanced Propulsion Centre’s Low electric, “will be less so for HGVs, Carbon Automotive Propulsion other than buses”. Technologies report. “If London’s But what about “range anxie- low emissions zone extends signif- ty”? Consumers fret that they’ll icantly, that’s the point at which hirty something oceans, cars could empower peo- run out of power or won’t be able you’ll find people saying, ‘Well, do years into the future, ple to store, and then distribute, to access charging points when I want to own a car? Can I make traffic will move on renewable energy”. Overnight, cars needed – and don’t fancy waiting better use of car sharing schemes “lanes with dedicated autonomously swap around with 30 minutes to top up batteries. or ?’” With speeds of 50, 75 and other cars in the “smart street” to There’s no such anxiety at Daim- Volvo and Uber’s announcement 100mph, engineered top up their batteries in wireless ler Trucks, however, where the in August of a $300 million joint for speed”. Safety will charging bays. In the morning, Mercedes Benz Urban eTruck – the venture to develop the next gener- be resolved too, with “your house and the grid draw en- first fully electric truck with an Two workers ation of autonomous cars, some vehicles segregated ergy straight from your car, pow- admissible total weight of up to carefully interesting business models could inspect using “automatic radio ering your home as you start the 26 tonnes – could be on the roads material come into play. control”. Sounds a bit day”. Nissan’s vision also extends as soon as early next decade. Sim- used for Chase maintains that, “if interiors, at familiar? No, it's not into the workplace, where an ilarly, Tesla’s “Master Plan, Part Aston Martin you layer on technology and the vision of Google, Tesla or Ap- automated parking system whisks Deux” maps out a future product autonomous capability, that’s ple, but a General Motors concept your car away, “to be recharged – line that includes the Tesla Semi, where it gets to be game changing, called Futurama, exhibited at the or the battery could even be used an electric autonomous heavy network of hydrogen refuelling because that’s where the vehicle 1939 World Fair in New York, an to power your office”. duty truck. stations giving fuel cell electric as we think of it as a privately envisagement of what 1960s roads To fulfil that dream, Nissan is “Development in batteries has vehicles access to the first pan owned motor car just ceases to be could look like. Nearly 80 years exploring the symbiosis between been staggering – five years ago European network of hydrogen relevant”. With increasing purchase on, the science enabling cars to energy infrastructure and vehicles, the idea of an electric bus, let stations, initially across the UK, costs, insurance, parking and zone detect the proximity of other mo- with current trials in Europe of a alone an electric double decker, France, Germany, Norway and charges, ownership starts looking tors, people and obstacles is still vehicle to grid system that, “will would have sounded improba- Sweden. That would suit the am- like a mixed blessing – and that’s ironing out teething symptoms – a allow drivers to operate as indi- ble,” says Celine Cluzel, associate bitions of proponents of fuel cell where new entrants come in. “You stark reminder that auto industry vidual ‘energy hubs’, able to store, director at low carbon energy vehicles, including Toyota with its don’t have to be a car company technologists have many hoops to use or return clean energy to the consultancy Element Energy. “Now You don’t have Mirai; Hyundai with the ix35; and to build a lightweight two seater jump through to catch up with the grid” – good news for proponents entire bus routes are being con- Honda with the Clarity. Honda is urban vehicle, which is why Google sector’s visionaries. of electrification in the race to verted to pure electric powertrain, to be a car also collaborating with General and Apple are such a threat to Present day imaginings of prevail in the future energy mix. notably in London, in demanding Motors on a new hydrogen product the industry,” Chase says – albeit tomorrow’s automotive utopias operating conditions. The value company to build roll out for around 2020. the automotive aspirations of have greener priorities. At March’s CHARGE OF THE ELECTRICS of the integration with the wider these companies remain shrouded International Motor Show in “By 2050, we anticipate electric energy system – energy storage, a lightweight PLANNING THE ROAD AHEAD in speculation. Geneva, Nissan, in collaboration vehicles will replace a consider- grid services to support renewable And the role of policy advisers? But what it does mean is with architects Foster + Partners, able volume – if not the majority generation, and optimisation of two-seater “It's our duty to set out the cost that mobility on demand, new presented the answer to the ques- – of cars on the road,” says Simon electricity demand profiles – will urban vehicle, effective path to the UK’s 2050 ownership paradigms and tion: “What is the fuel station of Crowfoot, MD of Ecotricity’s Elec- present great opportunities for emissions reduction target of 80 disruptive upstarts will influence the future?” tric Highway, the vehicle charging both plug in and hydrogen–elec- which is why per cent,” explains Matthew Bell, auto manufacturers as they Revealed in a futuristic three network that covers most of Brit- tric vehicles.” CEO of the Committee on Climate strategise over the types of minute video clip, Nissan’s con- ain’s motorway network. “Elec- Indeed, Element Energy has Google and Apple Change, an independent statutory vehicles consumers will want – cept promotes its LEAF electric tric vehicle ranges will increase, set up and is coordinating a €68 body established under the Cli- and that society will need – in

DRIVE TO THE FUTURE car as the hub of a zero emissions charging speeds will improve and million demonstration project are such a threat mate Change Act 2008 to advise 2050. These factors will most DRIVE TO THE FUTURE metropolitan lifestyle where, costs will come down. While the called Hydrogen Mobility Europe. the Government on emissions tar- certainly be the determinants of 32 “charged by the sun, wind and the infrastructure costs will still be This will create the world’s largest to the industry gets. “We develop various trans- the energy mix. 33 Opinion piece: Enel to trial vehicle-to-grid technology across Europe. This latest development will turn electric vehicles into clean mobile THE INNOVATION energy units, able to put energy back into the grid as well as take from it. We also have plans to move GAME into the residential home energy By David Moss, Vice President, Vehicle Design and Development, storage market, with the launch of our ‘xStorage’ unit in Europe Nissan Technical Centre Europe later this year, in partnership with power management firm, Eaton. The system will not only give he UK government has The potential of advancements Nissan batteries a committed to an 80 per in fuel cell technology is another ‘second life’, but will also provide cent cut in greenhouse gas interesting field. At Nissan, for a fully integrated energy storage emissions by 2050 (from example, we’re already working solution that will put energy 1990 levels). At Nissan, on the development of fourth management and distribution back we have already reduced generation hydrogen fuel cells, in the hands of the consumer. overall CO emissions by while making advances in research Often, infrastructure – or lack We’re not only here to research T 2 36 per cent by modernising around solid-oxide cells fuelled A Nissan LEAF of – emerges as a major barrier and develop vehicles for the in London the design of the internal by ethanol converted from to innovation in alternative fuels, European customer, however – combustion engine, and by bringing materials such as sugar cane. In as proven with the lack of readily we’re here as a satellite for global clean technology such as electric international markets in particular, available refuelling points for operations. So when it comes vehicles (EVs) to market. this could be of major interest, hydrogen cells. to research, we want the best, At Nissan we’ve done a great as many regions already have an There is no question that the and that means understanding deal of work on downsizing infrastructure in place for the EV market is picking up and we’re what the UK has to offer in the turbo engine, as well as distribution of ethanol as a fuel. David Moss seeing a much more rapid growth terms of talent and facilities. improving on aerodynamics, to trajectory. We introduced our With the Automotive Council help improve efficiency levels. We first fully electric vehicle in 1947, providing strategic insight to the have achieved more power, with and, since 2010, have produced government, we ensure that the

fewer CO2 emissions and less fuel 220,000 of our latest vehicle, the research taking place across the consumption, all while ensuring Nissan LEAF, of which 50,000 are UK is guided and heading in the the aspect of fun in driving in Europe. To date, we’ve spent right direction. That translates as remains constant. roughly £2.2 billion developing clarity for suppliers, both large One of the key areas that we our EV capabilities, which and small, which in turn means need to work on as an industry is represents a significant proportion that we have a viable sector in weight reduction. This is a huge of our overall R&D budget. This operation across the board. issue for the automotive sector investment has enabled us to take As an industry, we face a and, while it is indeed possible, it’s the LEAF from an initial range of number of challenges ranging proving a challenge to implement 109 miles (covering the majority of from congestion, to traffic for the mass market. We produce daily commutes in the UK) to 155 accidents, and up to macro a vehicle every 30 seconds, so miles today. events such as climate change. there are huge efficiency gains We believe in providing a range Technologies such as EVs, to be made, however, it’s proving of solutions to meet customer autonomous driving, and hard to make aluminium economic needs. While we already produce connected vehicles, can together as a production material for such two vehicles which meet go some way to solving these a process. Carbon fibre could also the targets required for the issues. The UK has proven be a viable alternative – the UK government’s Ultra Low Emission itself in terms of world-leading has some of the world’s leading Zones, we’re also doing significant capabilities in R&D across these experts in its use through our work in the infrastructure space. fields, and with collaboration work in the Formula One arena, so Beyond production of the fully between industry members involving this technology in a mass electric Nissan LEAF and e-NV200 and the government, the future production environment is clearly LCV, we’ve announced a major for sustainable development worth investigating. partnership with energy provider looks bright. THE INNOVATION GAME INNOVATION THE GAME INNOVATION THE

34 35 Engines INVEST TO IMPROVE: UK could invest to improve positioning since these Transmission, opportunities appear to be attractive driveline and kinetic energy recovery system Short timeframe Medium timeframe (by 2020) (by 2025)

Traction batteries High volume manufacturing Development and Tier 1 and fuel cells supply of transmissions of electric traction machines that cost effectively meet by vehicle manufacturers the specific requirements (and/or Tier 1 suppliers) of low volume hybrid and generating demand for Tier 2 supply of components and/ Lightweight electric vehicles technologies or sub-assemblies Development and Tier 1 supply of electric machines and associated power Long timeframe Traction electric electronics for low volume (after 2025) / high performance traction machines and power electronics applications FOCUS: Development of new sustainable lightweight materials that UK could provide focused support to build are low cost, low embedded Development and Tier 1 upon existing advantages in these attractive energy and recyclable, supply of modular traction System opportunity areas with commercialisation via battery packs for lowvolume Integration licensing to established vehicle applications material producers

Short timeframe (by 2020)

Provision of vehicle system integration Application and systems engineering services to high and low volume vehicle services for next generation traction OPPORTUNISTIC: manufacturers and Tier 1 suppliers electric machine and associated power electronics technology focussing on low UK has good positioning for these opportunities, though volume and specialist applications, in their relative attractiveness is lower. The UK could take Research, development and manufacture addition to in-house activity conducted advantage of its position as opportunities emerge of advanced internal combustion by high volume vehicle manufacturers’ engines with improved efficiency and R&D centres in the UK reduced emissions that are adapted to Short timeframe Medium timeframe hybridisation for low and high volume (by 2020) (by 2025) applications Development and supply of lower cost, shorter cycle time lightweight Development of improved exhaust components, focussing at least initially Development of advanced boosting Development of advanced waste aftertreatment and Tier 2 supply of on the low to mid volume requirements of solutions, with commercialisation heat recovery solutions, with high value aftertreatment sub-systems domestic UK vehicle manufacturers via in-house development by Tier 1 commercialisation most likely via (including catalysts) to Tier 1 suppliers with a UK footprint and/or intellectual property licensing exhaust system suppliers Provision of research and development intellectual property licensing to Tier to established Tier 1 suppliers of services to lower volume and specialist 1 suppliers without a UK footprint exhaust and/or thermal systems Development and supply of alternative vehicle manufacturers, leveraging fuel engine solutions for medium and advanced design and process techniques Development and low volume Development and Tier 1 supply of heavy duty commercial vehicles for to deliver affordable lightweighting production of cost effective kinetic novel propulsion and auxiliary power both original equipment and retrofit solutions energy recovery systems, primarily for engines to niche and specialist applications bus and off-highway applications vehicle manufacturers to comply with emissions regulations and sustainability commitments

Long timeframe Development and licensing Medium timeframe Long timeframe (after 2025) of innovative solutions to (by 2025) (after 2025) established transmission Development and Tier 1 supply of manufacturers (vehicle High volume manufacturing of traction Research, development and low integrated fuel cell systems to manufacturers and Tier 1 battery packs (and/or cells) by vehicle volume manufacturing leading low volume vehicle manufacturers suppliers) for integrating manufacturers (and/or Tier 1 suppliers) to licensing of next and next + 1 the traction electric generating demand for Tier 2 supply of generation battery cell chemistry R&D, co-development and Tier 2 motor, transmission materials and components supply of high value components and driveline in to fuel cell manufacturers electrified powertrains INVESTMENT OPPORTUNITIES INVESTMENT OPPORTUNITIES INVESTMENT

36 37 OPINION WHY THE UK IS AN AUTOMOTIVE LEADER The UK’s collaborative R&D approach has led to huge advances in LCV development, says Dr Graham Hoare, Chairman of the Automotive Council Technology Group and director of Global Vehicle Evaluation and Verification at Ford

he UK is a key player of the UK Government. The value chain, through the Advanced in the world of Government is as much part Propulsion Centre’s model of low-carbon vehicle of the campaign for a stronger Hub and Spokes. The Advanced technology for a automotive sector in Britain as Propulsion Centre “hub” is located number of reasons. the industry itself, as it recognises at the University of Warwick, with It has a world- the role of the automotive “Spokes” as centres of excellence T class scientific and industry as a catalyst for, and throughout the UK, providing engineering base, contributor to, growth. a coordinated national resource strong R&D and of facilities and expertise. They a very interesting collection RECIPE FOR SUCCESS are designed to provide access to of companies, all of which That shared vision has been the best expertise and facilities complement one another. critical to the UK’s success and, the UK has to offer in key While these companies are despite concerns raised over the strategic technologies for the fiercely competitive in their own impact of Brexit, we would expect automotive industry. markets they can join together that to continue. We know things Each Spoke is developed to solve common industry and are going to be different but there through a collaboration, creating technological problems. is a real recipe for success in partnerships between those It helps that while the Britain and we need to continue to who have good ideas and those competitive landscape is strong, strengthen that approach. who can bring them to fruition. many of the companies are In the UK, we had huge success In London for example, the targeting different sections in collaborative R&D through partnership includes Ford, of the market, or have very Automotive Council led initiatives. McLaren, Cosworth, Ricardo, different brand identities. Ford We have identified the challenges AVL, the High Speed Sustainable in the UK, for example, is strong we need to address (in terms of Manufacturing Institute (HSSMI)

in powertrain development and air quality, CO2, solving thermal and Autodesk, Loughborough engine manufacturing, with efficiency issues and the broader University, University College a focus on the engineering of agenda of mobility) and how low- London, the University of Bath commercial vehicles. Jaguar Land carbon and autonomous vehicles and the University of Nottingham. Rover doesn’t really compete in will evolve in the future. We need to continue to the same space, as it’s targeting a In collaboration with the enhance the UK ecosystem luxury 4x4/premium market. Aston government, we created the £1 and the Automotive Council Martin competes in the high-end billion Advanced Propulsion Centre, technology agenda as we push luxury market but it, in turn, is a as a central part of the Automotive the boundaries of technology, very different brand to Bentley. Council’s Industrial Strategy, and for low-carbon, clean propulsion This means the UK provides which is expected to drive growth and especially in relation to an environment for companies of 30,000 new jobs in the industry. autonomous and connected to operate as world-class It is the Advanced Propulsion vehicles. In the areas of mobility competitors but in a spirit of Centre which is now working on systems, autonomous vehicles complementarity, with an ability how we address these challenges, and embedded controls, I’m sure and desire to work together to through the following strategic there are some game changers improve the automotive sector technology areas: lightweight awaiting discovery. as a whole. By contrast, in other vehicles and powertrain The UK is recognised and countries and regions there is a structures, electric machines and appreciated globally as an much more direct competitive power electronics, energy storage automotive leader, and now is landscape, where automotive and energy management, and the time to be even stronger, companies are all targeting internal combustion engines. helping both domestic similar markets and delivering automotive companies and those Lewis Hamilton

celebrates on the similar products. HUB AND SPOKES headquartered overseas to find WHY THE UK IS AN AUTOMOTIVE LEADER top of the podium Perhaps the most significant Part of the process is to help new ways of working together to following his 2015 US Grandd Prix victory reason however, is the engagement universities engage throughout the drive our industry forward. 39 Lucas di Grassi of Brazil and ABT Schaeffler Audi Sport celebrates by skidding his car after winning the Mexico City Formula E Championship 2016 he fundamental all making R&D spending and conclusion of the innovation key priorities. Advanced Propulsion Developing and maintaining an Centre’s Capability innovation culture is a challenge Report is that nonetheless. Establishing the UK is great at innovation systems with solid innovation. This was innovation inputs, sophisticated also recognised in markets, a thriving business the recently released sector and robust linkages Global Innovation Index among innovation actors is a 2016 (GII 2016), which complex process. measures the level This is where the UK automotive of innovation within a country, sector stands out – the unique where the UK came after only strategic alignment between Switzerland and Sweden. industry and government. Not What the GII 2016 reports is that only does it host bodies such a corporate innovation culture as the Automotive Council and built around novel partnerships the Advanced Propulsion Centre, and innovation platforms has providing strategic guidance and significant potential to drive funding for applied development, long-term economic growth. It but it benefits from specific highlights the central importance automotive programmes within of investment in research and Innovate UK and the Catapult. On development (R&D) and innovation top of that, the government also for economic growth. Countries offers a range of tax incentives, that consistently perform well in grants and loans to organisations the index, or show improvement taking part in R&D. Its continual in innovation performance, are investment in education, national

infrastructure and business the challenges it faces. Go Ultra Low support provides a softer measure Nissan LEAF It is likely that there will of its innovation backing. (R) and Kia be significant technology-led Soul EV (L) on The UK has an outstanding charge on a disruptions to incumbent supply tradition in producing the very best London street chains over time, a unique in science and research – with opportunity for the UK given its less than 1 per cent of the world’s relative lack of Tier 1 suppliers population, the UK produces 16 per compared with other leading cent of the top quality published automotive nations. The recent research. This is despite a relatively resurgence in the UK’s domestic small investment - as a share of vehicle manufacturers is creating a total GDP, investment in innovation window of opportunity for the UK was just 1.67 per cent in 2014. Yet supply chain, but the competition China and the US far outstrip the UK The UK is in is fierce and the UK needs to act in terms of patent filings, even in a quickly if it is to take advantage period which has seen patent filings a position to of that chance. The supply increasing by up to 500 per cent. chain must collaborate to offer What this suggests is that the UK take global competitive products and services is not taking full advantage of the that can challenge the incumbent UK automotive opportunity. leadership in Tier 1 supply chain positions. The Capability Report, led by Global competition is fierce, and Advanced Propulsion Centre’s Chris a number of emerging economies like China May who as project leader managed areas – but it (which joined the GII for the first industry collaboration in the time this year) are only increasing sharing of sensitive data, is very must act now that competition. The UK must The Advanced Propulsion Centre’s capability clear that the UK is in a position to evolve with this new reality, study explores the extent to which the UK’s take global leadership in a number to address driving its competitive advantage of areas - lightweight technologies, by transforming the UK’s ability automotive industry is set to build on the MOVING FORWARD: BUILDING ON OUR STRENGTHS traction batteries, traction electric the challenges to deliver increasingly complex MOVING FORWARD: BUILDING ON OUR STRENGTHS short, medium and long-term changes in the motors and power electronics - and rapidly evolving technology 42 global automotive sector but that it must act now to address it faces systems across the supply chain. 43 e’re entering the age of the electric vehicle. Many of the technologies necessary to achieve a transformation in the transport sector are already in existence. However, the battle to determine which can offer consumers the cost, convenience, usability and control advantages necessary to supersede their fossil-fuelled forbears is currently being fought across a number of fronts. Both fuel cells and batteries have advantages and both face challenges in establishing appropriate infrastructure that will facilitate that crucial usability 1 consideration. Professor David Greenwood at WMG, The University of Warwick, In the nearly two decades since Toyota launched its explains: “We would need an pioneering Prius hybrid electric, in 1997, technology infrastructure in place to support across a whole range of allied and supporting low- from any petrol station, or any The UK grid, in common with either. The difference is that carbon vehicle industries has advanced dramatically. liquor store,” says Dunsmore. many, needs more electricity there is already an electricity Major auto manufacturers storage capacity to balance supply infrastructure in place which can Lightweight materials, fuel cells and batteries, are nonetheless pushing hard and demand, chiefly because be reinforced and strengthened, transmission and traction, engine management and for better access to quick variable output renewables - such where there isn’t currently a catalysts, all have a role to play in determining the charging infrastructure, for as wind and solar - form an ever hydrogen infrastructure in place.” future of low-carbon transport. The ultimate technology example exploring on-street greater part of our energy system. This is a point echoed by parking for urban areas using Were every domestic vehicle Gareth Dunsmore, EV Director for winners will offer consumers what they want. ‘smart’ lamp-posts which have in the UK electric, the equivalent Europe at Nissan UK. “It’s very charging facilities. of several large power stations easy infrastructure with electric Also under development to would be potentially available. vehicles in some ways, every facilitate ease of charging for Harnessing this capacity single plug in the UK can charge an battery vehicles is wireless could allow grid and domestic electric vehicle, whereas hydrogen in the lithium-ion technology that thing of past. That is the most power transfer (WPT). Currently renewable output to be maximised of course has that great challenge, powers the current generation of exciting next step.” commercially available as a static without impacting grid stability but perhaps in the future, one day electric vehicles. Furthermore, Fuel cells also have another 2 system, in which the vehicle is by either absorbing excess that might be cracked.” a host of potentially attractive potential advantage though. parked over an inductive pad - capacity, disconnecting from Advances in battery technologies battery chemistries are currently In August Nissan revealed its dynamic, on-the-move, charging charging during peak load periods also threaten to erode the fuel being explored and developed prototype solid-oxide fuel technology is also potentially on or supplying power from storage cell’s advantages of superior range with some success. For instance, cell vehicle, an iteration of its 1. A prototype the cards. when required. and quick refills. lithium iron phosphate and nickel e-NV200, which uses reformer vehicle of a future Dunsmore highlights the Such a scenario could perhaps , unveiled According to Greenwood: “The cobalt manganese are chemistries technology to produce hydrogen by Rolls-Royce role that city municipalities see the owners even paying for niche that fuel cells fill is that of a which are already in commercial from liquid fuels - in this Motor Cars in could play in rolling out WPT, their EV charging costs by making London vehicle that needs to be re-fuelled use and though no small challenge case widely-available ethanol. for example through bus-lane storage capacity and other grid- charging systems: “If that sort relatively quickly in order to be to scale-up to commercially viable Currently undergoing field tests 2. Charging the balancing services available with able to travel long distances, if we systems, promising technologies on public roads in Brazil, the batteries of a of infrastructure is put in place smart, grid-connected EVs. And Nissan LEAF get to the point where batteries at an earlier stage of development vehicle is expected to have a by municipalities, it suddenly after all, most domestic vehicles are able to hold the amount of also include sodium-ion, lithium- range of more than 600 km. makes wireless charging for spend the vast majority of the energy required to do that and are sulphur and lithium-air as well as Although reformer technology will electric vehicles that people own time parked. able to fast charge very quickly solid electrolyte technology, also inevitably add cost, complexity as personal mobility something This type of smart use of EVs and efficiently then that’s eroding referred to as solid state batteries. and potentially weight, it does of use and the value would be as an energy storage asset is the market that fuel cells would As Dunsmore notes: “I think over address a big chunk of the phenomenal.” already under trial in Denmark by be looking to exploit.” the next three or four years, we’re infrastructure equation. Looking forward further though, Nissan. As Dunsmore observes: “It

WHAT MIGHT HAPPEN? MIGHT WHAT There is at least another going to see huge advancements “We’re focusing just on trials an even greater environmental and puts the user in control. Energy HAPPEN? MIGHT WHAT decade or more of both cost and in the range so that range at the moment in Brazil, but economic opportunity for EV will is becoming a shareable economy 44 performance advances anticipated limitations suddenly becomes a potentially you could buy this fuel perhaps emerge. with vehicle-grid technology.” 45 he Advanced organisations need to be widely Greenwood concludes: “I think Propulsion Centre’s recognised as leading the world the key message that comes recent capability in specific and significant areas forward from the capability study study explicitly of technology. is that we have to recognise concludes that the Professor David Greenwood that cars aren’t going to look UK has a tremendous UK organisations of WMG at the University of the same in 10 or 20 years’ time, opportunity to Warwick says of the study: “It that the UK is extremely well capitalise on the need to looks at lightweighting of vehicles placed to have an active part in transformation of the and concludes that we’ve got delivering those future transport transport sector by be widely some really good experience, solutions and that there is a building on its strong particularly in areas such as really good alignment between capabilities in areas recognised as motor sport. It looks at electric government policy-makers and UK such as lightweight motors and power electronics manufacturers to deliver against materials, traction batteries and leading the and concludes that we’ve got those objectives.” a host of allied fields. However, some really good capability. What the UK needs to do is more work is required to attract world in specific We’ve got an extremely strong look forward and build on its the needed inward investment and academic base developing strengths. The UK automotive realise this huge potential to forge and significant new battery technologies and sector is strong, and growing, but, the future of transportation. battery chemistries.” as Constance says: “We need to Transport is changing. Indeed, areas of step on the gas.” The capability it’s no great leap of imagination to FIERCE COMPETITION report demonstrates that both consider that children born just a technology However, while organisations the ability and opportunity few decades from now may find operating in the UK can build for LCV is in no short supply for the phrase “roaring traffic” as upon world-class research, the UK. As the world shifts from anachronistic as VHS video tape development and manufacturing current-generation technology to recorders are to the PlayStation capabilities to capitalise on the next the UK needs to be at the generation. Instead, their urban these technology-led disruptions, forefront of that change. All that’s world will be filled with the faint still remain over which low- international competition is needed is the will to ensure that hiss of tyres on tarmac and the carbon technologies will emerge fierce. Furthermore, investment capability is realised. whisper of moving air. to transform the transport sector barriers are still to be overcome While global internal combustion and which players will stand at to maximise the potential gain; engine manufacturing and sales the top of the LCV market. The UK for example, the UK lacks many may peak in the coming years, must evolve with this new reality. global tier one suppliers. As a there is a huge tail of need from As Ian Constance, chief executive result, the UK supply chain must heavy-duty applications such of the Advanced Propulsion Centre collaborate to offer competitive as buses and trucks and long- says: “There is a lot of activity products and services that can distance vehicles. Hybridisation in almost every area but most challenge the incumbent tier one will play an important role, companies can’t afford to back supply chain positions. Disruption especially for long-distance travel. all the horses in this race. If they of incumbent supply chains is While organisations select one technology now, it may always a potential threat, EVOLVING STRATEGY be too early.” but it also provides an operating in the With environmental considerations That is what the ecosystem opportunity for organisations indicating that the supremacy driven by the Advanced Propulsion willing to embrace change. UK can build of electric vehicles is all but Centre and Innovate UK is setting Greenwood notes, as an assured in the future, questions out to achieve; the ability to do example, scope for further upon world- more with less, and to take more development of large-scale risks. According to Constance: battery-cell manufacturing class research, “The capability report is a key capability: “Given the scale of aspect of what we do, and we’ll [battery cell] manufacture we’re development and be doing one every couple of going to need in the future for years. It means we’re making sure electric vehicles in particular, it manufacturing we’re constantly monitoring our would be helpful to generate, or to environment and evolving our encourage inward investment in, capabilities to strategy. It means we can keep on a large-scale cell-manufacturing capitalise on top of the trajectory of travel and company in the UK.” Building on its strengths inform the roadmaps we create. If the UK is to capitalise these technology- in automotive development, And it means we can go on that on its strengths and help the UK is at the forefront journey together.” forge the future of low-carbon led disruptions, vehicles, collaboration across of change in the transport In one key conclusion, the LOOKING FORWARD report notes that to attract industry, government, investors, international LOOKING FORWARD industry, as it adapts to further investment and secure the R&D sector and other 46 global advances in technology more export opportunities, UK stakeholders is key. competition is fierce 47 INNOVATION foreign investment in the partnerships between those automotive supply chain and who have developed low-carbon research and development, propulsion technologies and strengthen the Government’s those who can bring them to links with global automotive market. The APC Hub & Spoke AND R&D HQs, and promote UK model provides open access to automotive industry. the UK’s expertise and resources, by creating a national network Innovate UK aligned with the key strategic Innovate UK is the UK’s technologies for the automotive ECOSYSTEM innovation agency. It works with industry, identified through the companies to de-risk, enable consensus roadmaps created by and support innovation, putting the Automotive Council. them in a stronger position The Advanced Propulsion to attract investment, and Centre provides funds through available for trade. It does aligned government funding facilitating access to investors, a series of competitions. this through developing, co- mechanisms in the world, collaborators, customers and The funds are split between FUNDERS ordinating and delivering a it has a £4.6 billion research export markets. Since 2007, industrial research with new trade and investment portfolio, of which 54 per cent Innovate UK has invested around a business partner and policy to promote UK business is collaborative with over £1.8 billion in innovation, which experimental development with Department for Business, across the globe; developing 3,550 organisations. has been more than matched by a business partner. Successful Energy and Industrial Strategy and negotiating free-trade the private sector – returning consortia are expected to (BEIS) agreements and market access Automotive Investment between £11.5 billion and £13.1 include at least one SME and a The new Department deals with non-EU countries; Organisation (AIO) billion to the economy. It has Tier 1 or vehicle manufacturer. for Business, Energy and negotiating plurilateral trade The Automotive Investment supported innovation in 7,600 Industrial Strategy (BEIS) brings deals (focused on specific Organisation was formed in organisations, creating around Office for Low Emission Vehicles together responsibilities for sectors or products); and 2013. It forms part of DIT and 55,000 new jobs. (OLEV) business, industrial strategy, providing operational support is strategically aligned with Innovate UK’s Low Carbon The Office for Low Emission science, innovation, energy and for exports and facilitating the Automotive Council. The Vehicles Innovation Platform Vehicles is part of both the DfT climate change. inward and outward investment. AIO aims to increase targeted was established in 2007 to and BEIS. It funds and manages Business and Energy Secretary support innovation in the LCV a programme of industry-led Greg Clark said: “Our automotive The Engineering and Physical sector and help boost the research and development to sector continues to go from Sciences Research Council UK automotive supply chain. support strength to strength, thanks to (EPSRC) Alongside Innovate UK, the which the UK can exploit our highly skilled workforce and The Engineering and Physical programme of LCV support is and lead globally, where long-term investment in new Sciences Research Council also backed by the Office for full commercial funding is technology and innovation. This (EPSRC) finances research Low Emission Vehicles and not otherwise available. The Government’s comprehensive discovery and innovation. It the Department for Business, Government is committed to industrial strategy will build on is the main UK government Energy and Industrial Strategy. accelerating the pace of change that success, ensuring that we agency for funding research Nearly 300 innovation projects in ultra-low emission vehicle have the right infrastructure, and training in engineering and have been supported to date, technology and contributes skills and support in place for the physical sciences, investing involving over 700 collaborators to the funding of a range our world-leading industries, more than £800 million a year For every £1 from across the UK. of innovative research and as well as support for new in a broad range of subjects – invested in green development activities. emerging sectors to flourish.” from mathematics to materials The Advanced OLEV is focused on identifying automotive technologies, science, and from information Propulsion Centre and supporting emerging Department for International technology to structural a return of up to £34 The Advanced Propulsion technologies in this area. These Trade (DIT) engineering. over the next 15 years Centre is a ten-year, £1 billion currently include: energy storage The Department for The EPSRC is a non- could be realised, programme to position the and management; electric International Trade promotes departmental public body UK as a global centre of machines and power electronics; protecting up to 12,000 British trade across the world funded through the Science excellence in low-carbon light-weighting of vehicles; UK jobs in the process

INNOVATION AND R&D ECOSYSTEM to ensure that the UK takes budget by BEIS. Regarded by propulsion development and relevant industry disruptive INNOVATION AND R&D ECOSYSTEM advantage of the opportunities many as being one of the best- (Source: Innovate UK) production. The APC facilitates technologies. 48 49 The £35m CCAV2 call for are channelled through Transport Systems Catapult by an organisation with projects under the BEIS £100m three working groups, each The Transport Systems Catapult recognised expertise in those POLICY MAKERS Intelligent Mobility fund was divided into a range of work is one of ten technology and key technologies, but the launched on 22nd August 2016. streams. The working groups innovation centres established fundamental role of the Spoke Department for Transport (DfT) are: business environment and overseen by Innovate UK. It is to coordinate a community Department for Transport plans and skills; supply chain; and was created to drive and promote of common interest. This and invests in UK transport technology. intelligent mobility, using new community will act as a infrastructure. It has four and emerging technologies to centre of excellence in the strategic objectives: INDUSTRY AND Low Carbon Vehicle Partnership transport people and goods more key technologies for the UK • Sustain economic growth ACADEMIC BODIES (LowCVP) efficiently and effectively. The automotive industry. and improved productivity The LowCVP which was main focus areas are automated The Spokes network brings through reliable and efficient Automotive Council established in 2003, is a public- transport systems, modelling together academia and industry transport networks; The Automotive Council was private partnership working to and visualisation, customer to work collaboratively on • Improve the environmental established in 2009 to enhance accelerate a sustainable shift experience, information fundamental and applied performance of transport; dialogue and strengthen co- to lower carbon vehicles and exploitation and smart industrial research. It also • Strengthen the safety and operation between the UK fuels and create opportunities infrastructure. provides a platform to engage security of transport; and Government and the automotive for UK business. Around 200 the broader community in the • Enhance access to jobs, sector. The Council is made up organisations are engaged Advanced Propulsion Centre key challenges that the sector services, and social of senior figures from across from diverse backgrounds Spokes Communities needs to address. networks, including for the industry and government and including automotive and fuel The Spokes communities are most disadvantaged people. meets three times a year. It supply chains, vehicle users, designed to provide access The current Spokes are led by: provides strategic insight to academics, environment groups to the best expertise and • Loughborough University The department "creates government about opportunities and others. The Partnership facilities the UK has to offer (London): Digital Engineering the strategic framework" for for growth and development in became a not-for-profit in key strategic technologies & Test Centre transport services, which are UK automotive. The activities company limited by guarantee for the automotive industry. • Newcastle University: delivered through a wide range of the Automotive Council in April 2009. Each of the Spokes is hosted Electric Machines Spoke of public and private sector • University of Bath: ICE bodies including its own System Efficiency Spoke executive agencies. • University of Brighton: ICE Thermal Efficiency Spoke Centre for Connected and • University of Nottingham: Autonomous Vehicles Power Electronics Spoke Centre for Connected and • University of Warwick: Autonomous Vehicles (CCAV) is Electrical Energy a new joint policy unit between Storage Spoke BEIS and DfT. It is intended to address the interaction among The Society of Motor vehicles, infrastructure and Manufacturers and Traders data to achieve these (SMMT) technologies’ significant The SMMT is the trade economic and social benefits. association of the UK motor CCAV’s goal is to help ensure industry. It exists to support and that the UK remains a world promote the interests of leader in developing and testing the UK automotive industry at connected and autonomous home and abroad. It acts as vehicles by: leading and the voice of the motor industry, innovating policy development promoting its position to in this sector; delivering government, stakeholders and a programme of research, the media across a number of development, demonstration and major themes:

deployment activity, worth up to Renault • Competitiveness £200 million, through Innovate E Dams • Education and training team driver UK; providing co-ordination Nicolas Prost • Consumer protection across DfT, BEIS and the rest competes • Environment during the of government; and by being French • Globalisation stage of the

INNOVATION AND R&D ECOSYSTEM the single contact point for • Legislation INNOVATION AND R&D ECOSYSTEM Formula E stakeholder engagement. championship • New Technology 50 51