Howes Percival
Moving through the gears
Tom Redman Partner Howes Percival
The UK automotive sector, a vital component of the nation’s economy, is navigating a constantly and rapidly changing landscape shaped by technological innovation, regulatory pressures, and shifting consumer preferences. A combination of technological, regulatory and economic forces continues to converge, making the sector one that serves up both exciting opportunities and significant challenges. With the UK government’s mandate to ban the sale
of new petrol and diesel cars by 2030, OEMs are rapidly increasing their investment in EV technology. T e shift is not just about replacing old models with new; it involves developing new infrastructure, an extensive network of charging stations, and innovating battery technology to improve range and performance. While EVs are leading the charge, hydrogen fuel cells and other alternatives are starting to gain some traction. Hydrogen continues to be explored for its potential in heavy-duty and long-distance transport, where battery technology might not yet be viable (or, indeed, practical). Whether or not hydrogen becomes what the digital music revolution was to the minidisk player, remains to be seen…
As part of the drive to EV, the UK’s environmental
regulations continue to push the sector towards ever greater sustainability. Stricter emissions standards, requirements for increased fuel effi ciency, and mandates for recycling and waste reduction are all on the agenda. Compliance with these regulations goes beyond automotive retail; it’s fundamentally reshaping manufacturing processes and product designs. OEMs are acquiring companies specialising in electric vehicle technology, battery production, and clean energy solutions as seen with General Motors taking a signifi cant stake in a leading battery technology company in 2023, bolstering its electric vehicle line-up and securing further vertical integration of its supply chain. Aside from government regulatory mandated change,
consumer preferences continue to shift and infl uence the market. T ere is a growing demand for electric vehicles driven by environmental concerns, government incentives, and advancements in technology and the UK government’s upcoming 2030 ban is only likely to accelerate this shift. In June 2024, 34,034 (19% of all new car registrations in the UK) were EV but there remains signifi cant investment in EV infrastructure required if the UK is to hit its ambitious 2030 target. By comparison, China remains at the forefront of the EV revolution, with ambitious goals and substantial investments and is projected to achieve some 11.5 million
ALL THINGS BUSINESS | 10
MOTORS
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