Electric Vehicles along with the UK's Road to No Pollution

Electric Vehicles along with the UK's Road to No Pollution

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The UK automotive industry is at a crucial juncture as it transitions 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 greatly boost the presence of BEVs (BEVs), in spite of existing obstacles such as elevated manufacturing 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 adopting strategies like giga casting to lower manufacturing costs. Large-scale casting, previously employed by Tesla and several automobile Chinese producers, streamlines the production process by molding big parts of the vehicle, which reduces both complexity and expenses​ (Grant Thornton)​.

Even with these improvements, the industry encounters 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 dedication 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)​.