ELECTRIC VEHICLES - THE FUTURE OF THE UK AUTOMOTIVE INDUSTRY?

In a move which Volvo has termed a “historic end” to constructing models with only an internal combustion engine, the company has stated that all of its cars launched from 2019 onwards will be either hybrid or fully electric.
Chief Executive, Håkan Samuelsson, asserts that this is a direct response to an increased demand in electric cars – one which will also help Volvo meet the legally-binding carbon targets for new cars produced in the EU as of 2020.

 

In the UK, new Petrol and Diesel cars will no longer be able to be sold by 2040, a regulation which aims to drastically decrease carbon emissions – especially in light of the September 2015 VW Emissions Scandal.

 

The effect this has had on the automotive world is tumultuous, and with government grants now readily available for those companies looking to tackle pollution and climate change, the incentive to develop electric cars has taken front seat. Indeed, it is expected that by 2020, the electric car will begin to outcompete the internal combustion entirely.

Geely already has five plug-in models under its belt, and their recent purchase of Lotus has only increased the momentum of other car manufacturers’ strategies to do the same.

Just this week it surfaced that BMW will produce an electric Mini in the UK; Renault-Nissan has also unveiled plans for developing electric cars; and with Elon Musk’s Tesla Model S and X rolling off the production lines, the competition has really ramped up for other companies to do the same.

 

So what does this say for British car manufacturers, especially in light of the most changing landscape in the automotive industry since Henry Ford, and with Brexit looming ever closer?

 

There has been a strong and growing demand for British products: Aston Martin have made a distinct profit this year, and Jaguar Land Rover and Bentley sales are hitting a record high, but the recent requirement to create entirely new product lines, and the scarcity of automotive engineers, will only create added strain on the car maker.

 

The three main focuses for the car manufacturer are electrification, connectivity and autonomy. Developing large quantities of new products which adhere to these principles, whilst also taking into account the cost constraints, will generate a highly stressed automotive environment; that, or the opportunity for an established automotive business to step up and provide the automotive industry with a strategy for success.

AKKA Technologies, a European Technology firm with a workforce of 15,000 consultants present in 30 countries, is expanding in the UK automotive industry, despite the effects of Brexit.

For more than 34 years, AKKA Technologies has been supporting car manufacturers such as Renault and Daimler, and it is now developing its UK branch in order to help similar UK manufacturers take advantage of the subsequent increase in automotive sales.