The United Kingdom automotive sector is at a pivotal moment as it transitions towards a future centered around electric cars (EVs). The Zero Emission Vehicle mandate, taking effect in 2024, requires 22% of all sedans sold to be zero-emission vehicles, with 10% for LCVs. This legal push is anticipated to considerably increase the market share of BEVs (BEVs), in spite of current difficulties such as elevated manufacturing costs and low profits for manufacturers​ (Grant Thornton UK LLP)​​ (EY)​.

Nonetheless, the sector is not without its hurdles. The sales of BEVs have recently experienced a decrease, in part due to the upcoming regulations and the costs they place on makers. Firms are implementing strategies like giga casting to cut production costs. Large-scale casting, currently employed by Tesla and several Chinese producers, eases the production process by casting large sections of the vehicle, which reduces both complexity and costs​ (Grant Thornton UK LLP)​.

In spite of these improvements, the industry encounters a precarious balance. Rising inflation and interest rates, together with changing battery technologies and potential tariff changes on non-EU BEVs, add to market volatility. Nonetheless, the commitment to renewable energy and creative manufacturing processes provides a promising outlook for the UK's automotive industry as it shifts to a more automotive indutry environmentally-friendly system​ (Grant Thornton)​​ (EY)​.