Electric-powered Vehicles along with the UK's Path to No Pollution

Electric-powered Vehicles along with the UK's Path to No Pollution

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The UK automotive industry is at a crucial juncture as it transitions towards a future centered around EVs (EVs). The ZEV mandate, taking effect in 2024, requires 22% of all passenger cars sold to be ZEVs, with ten percent for LCVs. This regulatory effort is expected to considerably increase the market share of battery electric vehicles (BEVs), despite present difficulties such as elevated manufacturing costs and low profits for makers​ (Grant Thornton)​​ (EY)​.

Nonetheless, the sector is not without its challenges. Sales of BEVs have recently experienced a decline, partly due to the upcoming regulations and the financial burden they impose on manufacturers. Companies are adopting approaches like large-scale casting to lower manufacturing costs. Large-scale casting, currently utilized by Tesla and several Chinese producers, streamlines the manufacturing process by molding big parts of the vehicle, which reduces both complexity and expenses​ (Grant Thornton)​.

Even with these developments, the sector encounters a precarious balance. Higher price increases and borrowing costs, combined with changing battery technologies and potential tariff changes on non-EU BEVs, cause market instability. Nonetheless, the dedication to renewable energy and innovative manufacturing processes yields a bright future for the UK's automotive future as it shifts to a more environmentally-friendly system​ (Grant Thornton automotive indutry UK LLP)​​ (EY US)​.