Electric Automobiles and the UK's Journey to Zero Carbon Emissions

Electric Automobiles and the UK's Journey to Zero Carbon Emissions

Blog Article

The United Kingdom automotive sector is at a pivotal juncture as it navigates towards a era dominated by electric cars (EVs). The Zero Emission Vehicle mandate, starting in 2024, mandates 22% of all passenger cars sold to be ZEVs, with 10% for light commercial vehicles. This legislative push is expected to significantly increase the market share of battery electric vehicles (BEVs), in spite of existing obstacles such as elevated manufacturing costs and narrow profits for producers​ (Grant Thornton UK LLP)​​ (EY US)​.

However, the sector is not without its challenges. Selling BEVs have lately seen a decline, partly due to the upcoming automotive rules and the economic strain they place on producers. Businesses are adopting strategies like large-scale casting to lower manufacturing costs. Giga casting, already used by Tesla and several Chinese producers, streamlines the manufacturing process by casting large sections of the automobile, which lowers both complexity and costs​ (Grant Thornton)​.

Even with these improvements, the industry confronts a sensitive balance. Higher inflation and borrowing costs, together with evolving battery technologies and possible tariff changes on non-EU BEVs, contribute to market instability. Nonetheless, the dedication to green energy and new production methods offers a promising prospect for the UK's automotive future as it shifts to a more eco-friendly model​ (Grant Thornton)​​ (EY)​.