Car chiefs meet Chancellor as industry calls for support on new technology 

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Although the Government has said it will stop the sale of new cars powered solely by petrol or diesel by 2040, the fuels could still be in use long after through hybrid-electric power trains and the industry wants the Government to recognise this. 

One industry source present for the talks described them as “constructive”.

Car makers – who export 80pc of their UK output – have been one of the most vocal in campaigning for a tariff-free Brexit trade deal, but a source at the meeting said while Britain leaving the EU did come up, it was not the focus of the event.

The industry trade body the Society of Motor Manufacturers and Traders has previously warned that the sector – which directly employs 169,000 people in vehicle manufacturing and 814,000 across the wider industry – could be hit hard if the UK leaves Europe without agreeing a deal.

No deal could mean a £1,500 hike on the price of cars imported from Europe as standard WTO tariffs are imposed, and reciprocal levies put on cars built in the UK and sold abroad making them unattractive to foreign buyers.

Source