The Automotive and Fleet sectors are geared for a significant transformation in the year ahead, particularly in the Electric Vehicles (EVs) field. The growth in the UK's new car market in 2023 has set the stage for manufacturers to intensify their investment in EV Research and Development (R&D). In this article, we will discuss the key factors driving this shift and consider how it aligns with the changing landscape of vehicle manufacturing.
Easing Supply Chain Pressures and Improved EV Availability
The supply chain challenges that slowed the UK's transition to electrification are gradually easing, enabling Original Equipment Manufacturers (OEMs) to catch up on production deficits. Jordan Brompton, co-founder and CMO of Myenergi, anticipates a rapid improvement in EV availability. Waiting lists for luxury models are expected to shrink, leading to increased pressure on legacy OEMs from new market entrants.
Production Efficiency, Price Parity, and Consumer Benefits
With supply aligning with demand, production efficiencies are set to rise, resulting in a noticeable reduction in EV prices. This shift brings EV's closer to price parity with Internal Combustion Engine (ICE)-powered cars, making them more accessible to consumers. This trend is evident in the financing industry, where many electric models are approaching price comparisons with their traditional counterparts. As production efficiencies improve and EV prices decrease, consumers will have more options when it comes to financing electric models.
Accelerated Transition to Electrification
As the transition to electrification gains momentum, vehicle manufacturers are expected to divert more resources towards EV R&D, phasing out investments in ICE models. This shift signals a pivotal moment in the decline of traditionally fuelled vehicles as consumers increasingly opt for cutting-edge technology over conventional alternatives.
Government Support and Funding for EV Technology
The UK government's commitment to the electric future is evident in the £89 million funding allocated to 20 cutting-edge net zero tech projects. The projects, supported by the Advanced Propulsion Centre UK, aim to establish a comprehensive supply chain for zero-emission vehicles in the UK. Minister Nusrat Ghani underscores the anticipated economic growth and job creation, with these projects estimated to safeguard over 4,700 jobs and reduce CO2 emissions by nearly 65 million tonnes over the next decade.
APC Chief Executive Ian Constance said:
"This latest round of funding coincides with the APC’s 10th anniversary. We have seen over £1.4 billion of investment into automotive projects since the APC was set up, and I am proud of the impact that we have made here in the UK. This latest announcement includes a diverse set of OEMs and suppliers that demonstrate the strength of UK automotive. They will further add to our portfolio of innovative projects and continue to drive the UK to deliver on its net-zero ambition."
Projected Revenue and Market Dynamics
According to projections, the Electric Vehicles market in the United Kingdom is expected to reach a substantial revenue of £16.1 billion in 2024. This indicates the impact of EV's in the automotive landscape and emphasises the economic benefits associated with the industry's transition.
Challenges and Opportunities in 2024
Despite the positive momentum, challenges remain for manufacturers. The new car market is anticipated to revert to a 'push' model, driven by factors such as slowing retail sales, new Zero Emission Vehicle (ZEV) Mandate targets, and increased competition. Dealers are expected to continue offering discounts and finance deals to stimulate consumer demand, leading to a projected 4.2% growth in new car sales.
The year ahead unfolds as a pivotal chapter in the automotive industry's journey towards electrification. Manufacturers, spurred by eased supply chain pressures and increased demand, are channelling resources into EV R&D. Government support and funding further reinforce the UK's commitment to becoming a major player in zero-emission vehicle technology.
What does this mean for recruitment?
As OEMs ramp up EV production, demand for candidates with specialised skillsets will increase. Battery technicians, electric motor specialists, and power electronics engineers will be in high demand. Existing automotive engineers can bridge the gap by upskilling in areas like battery management systems, software development, and electric propulsion technology. Additionally, specialists from adjacent fields like renewable energy and battery-based industries can find promising career paths in EV manufacturing.
With ICE-powered vehicles gradually fading into the past, production lines will adapt to accommodate the intricacies of EV assembly. Automation will play a significant role, but the need for skilled technicians to manage and maintain these automated systems remains crucial. The rise of EV R&D also translates to job openings for research engineers, designers, and software developers focused on pushing the boundaries of electric vehicle technology.
Embracing the EV revolution is not just about securing a job in the present; it's about investing in a future-proof career. The skills acquired in the EV sector are highly transferable and relevant to the broader cleantech and sustainable technology industries. By specialising in this rapidly evolving field, individuals can position themselves for long-term career success and contribute to a greener future.
As the Automotive and Fleet industries evolve, matching the workforce with the demands of this electrified era is paramount. E3 Recruitment is committed to facilitating the pairing of skilled professionals with opportunities within the Automotive and Fleet sectors. Our commitment aligns with the industry's trajectory, ensuring that businesses thrive in this electrifying future while fostering the growth and development of a skilled workforce.