What is the future of the automotive industry in the UK? In the coming 10 years, we will live in an EASCY world of vehicles–Electrified Autonomous Shared Connected and Yearly updated vehicle models. With the increasing awareness around the impact of emissions on our environment and tech advancements, future drivers do not consider car ownership as an essential facet of life.
They demand eco-friendly and cheap options that make driving comfortable. Electric Vehicles (EVs) are changing the automotive sector of the UK and are one of the ways to help the country achieve the Net Zero target. As the Climate Change Committee (CCC) has set forward the motion to discontinue the sale of petrol and diesel vehicles by 2032, automotive companies are conducting innovative research and development.
EV Scenario in the UK
While the UK is one of the early adopters of EVs, it now reports more than 16% of total sales. Britain is Europe’s second-largest zero-emission car market by volume. By 2032, the number of EVs is expected to grow to 23.2 million, significantly impacting the electric vehicle market.
As transportation accounts for the highest GHG emissions in the UK, it is critical to reduce transport emissions, wherein EVs will play a significant role. Private car owners are to be credited for the EV adoption initially, but fleet businesses gradually started shifting to EV technology. Around 68% of private car owners want to drive an EV, but about 17% stated they will make the move in 2024.
More than 50% of the respondents are not ready to move–the high upfront cost of buying an EV could be one of the reasons. Likewise, car manufacturers are ramping up their production facilities with more focus on EV technology and offering more choices to meet consumers’ needs.
Challenges
While the public is ready to buy EVs, the UK government’s incentives could push consumers to purchase EVs sooner. Insufficient charging infrastructure is one of the significant reasons people are sceptical about shifting to electrification. Around 18,000 EV charging stations are available in the UK, helping charge about 400,000 EVs.
However, if the UK aims to grow the sales of electric vehicles to 23.2 million by 2032, it needs approximately 325,000 public charging stations. Also, around 80% of EV owners charge their cars overnight at home. People fear they might run out of power before locating an EV charging station, especially when travelling in rural or outskirt areas. The government will have to double up retail public charging points to help consumers leverage the benefit of UK electric vehicles.
But putting up more EV charging stations faces another challenge–significant costs for reliable charging infrastructure. Additionally, Transmission Network Operators (TNOs) and Distribution Network Operators (DNOs) do not have access to solutions to offer maximum charging capacity.
Another concern of using EV technology is the production of EV batteries. While electric vehicles are considered a sustainable transportation and greener option, producing lithium-ion batteries needs massive amounts of resources and energy, emitting carbons. However, tech engineers are focusing on developing advanced battery technology that will replace the need for mining lithium-ion batteries.
The Roadmap Ahead
Considering the challenges and the future prospects of the UK’s automotive sector, the UK government has already deployed regulations and programs to encourage people to shift to electric vehicles. Besides, it still needs to put together a comprehensive charging strategy to boost the electrification of public transport.
Owners of fleet companies and vehicle-sharing services can shift to an electrified fleet only when they can access charging stations with maximum capacity. The government should also pump in investments towards smart charging and mitigate challenges associated with network upgrades.
The UK government should keep working with industry and network administrators to guarantee a fair financing model to increase charging installations without imposing excessive cost burdens on network operators.
Furthermore, it can reduce VAT on EVs–similar to other eco-friendly installations like solar panels or heat pumps. They can implement mandates to cut down the VAT on public charging to enhance the attractiveness of EVs.
Many vehicle manufacturers in the UK have proactively flagged to give an end to the production of traditional petrol and diesel vehicles. On the other hand, they are investing in revamping their electric vehicle production operations. Vehicle manufacturers should align their strategies and fundamentally shift their assembling cycles and supply chains.
If UK car manufacturers delay their R&D and planning, they might be left behind as overseas manufacturers can step up with the necessary provisions. This helps raise awareness amongst consumers about the growth of UK electric vehicles and can trigger them to buy an EV soon. Vehicle tracking systems make it easier for EV fleets to plan according to their battery life and health while route planning.
The Future Of Transportation in the UK
The UK’s automotive sector can be the forerunner in developing EVs worldwide with the correct set of strategic procedures, investments, and implementations. A 100% transition to EVs can help the country attract more investments, increase production to 880,000 EVs annually, and create around 89,000 jobs in the EV landscape. Change is an ongoing process, but with a commitment to progress, the UK can make EVs the showstopper of the automotive industry.
