The United Kingdom auto sector is at a critical moment as it navigates 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 ZEVs, with ten percent for LCVs. This legal initiative is expected to significantly increase the market share of BEVs (BEVs), despite present difficulties such as high production costs and narrow profit margins for producers​ (Grant Thornton)​​ (EY)​.

Nevertheless, the sector is not without its obstacles. Selling BEVs have lately experienced a drop, partially due to the forthcoming rules and the costs they place on producers. Businesses are embracing tactics like giga casting to reduce production costs. Giga casting, already used automobile industry by Tesla and several Chinese producers, eases the production process by forming major portions of the car, which lowers both complexity and costs​ (Grant Thornton UK LLP)​.

Even with these developments, the sector encounters a precarious balance. Higher price increases and borrowing costs, together with changing battery technologies and potential duty changes on non-EU BEVs, cause market instability. Nonetheless, the commitment to green energy and innovative production methods yields a hopeful outlook for the UK's automotive industry as it moves to a more eco-friendly model​ (Grant Thornton)​​ (EY)​.