The Government’s ambitious plan to phase out petrol and diesel vehicles by 2040 could provide a major shot in the arm for the North East’s automotive sector, according to Nifco UK (www.nifcoeu.com) managing director Mike Matthews.

The Business, Energy and Industrial Strategy (BEIS) Committee recently met with BMW, Nissan, Toyota and BYD UK in Westminster to outline plans to switch to electric-vehicle (EV) manufacturing.

The aim was to examine how the UK can maximise the economic opportunities of EV manufacture and to discuss what more could be done by the Government to support the industry.

The debate outlined the opportunities and challenges facing manufacturers — important topics in the North East, because the Sunderland-built Nissan Leaf is now one of the world’s best-selling electric vehicles.

BMW also hinted that it could bring battery manufacturing to the UK in the not too distant future, providing another major boost to the sector.

However, the companies also warned of the challenges facing the switch to electric — from battery life-span to low domestic demand and increased competition from overseas.

Mr Matthews said: “Our sector has always had a heavy focus on producing petrol and diesel vehicles, so it is naturally going to be a huge change for manufacturers to embrace.

"Nifco was one of the North East manufacturers selected for the supply chain for Nissan’s iconic Leaf when production began in 2013, and this experience will help us — along with many other regional manufacturers — to capitalise on the opportunities that will arise from the phasing out of petrol and diesel vehicles.

“Nissan has committed to producing its next-generation Leaf in Sunderland, and the continued investment by OEMs such as Toyota, BYD UK and BMW could potentially open up a whole host of new opportunities for the region’s manufacturers.

“For example, we have made great strides at Nifco in researching, understanding and supplying products for EV manufacture, which can differ greatly from those produced for petrol and diesel vehicles.

“The switch to producing electric vehicles will mark the beginning of a new era for the UK automotive sector; if we work together, there is no reason why the North East cannot lead the charge and continue to compete on the global stage.”