Electric Automobiles and the UK's Road to No Emissions

Electric Automobiles and the UK's Road to No Emissions

Blog Article

The UK automotive sector is at a critical juncture as it navigates towards a future centered around electric cars (EVs). The ZEV mandate, coming into effect in 2024, requires 22% of all passenger cars sold to be emission-free vehicles, with ten percent for LCVs. This legislative push is expected to significantly boost the market share of BEVs (BEVs), in spite of existing obstacles such as elevated production costs and limited profit margins for manufacturers​ (Grant Thornton UK LLP)​​ (EY US)​.

However, the market is not without its hurdles. Sales of BEVs have recently seen a decline, partly due to the upcoming regulations and the financial burden they impose on manufacturers. Companies are implementing approaches like large-scale casting to lower manufacturing costs. Large-scale automobile industry casting, currently utilized by Tesla and several Chinese producers, streamlines the manufacturing process by casting large sections of the vehicle, which reduces both complexity and expenses​ (Grant Thornton)​.

Even with these improvements, the industry faces a delicate balance. Elevated price increases and borrowing costs, together with changing battery technologies and potential duty changes on non-EU BEVs, cause market instability. Nonetheless, the commitment to green energy and innovative production methods yields a hopeful future for the UK's automotive industry as it shifts to a more eco-friendly model​ (Grant Thornton UK LLP)​​ (EY)​.