BRACING FOR THE AFT
With unprecedented technological advancements and legislative dem
VITAL NEWS investigates what
With continued growth of Electrified Vehicle (EV) registrations this
year and post-Brexit speculations, the message is loud and resounding
– the automotive market is facing a new dawn. At Automechanika
Birmingham this year, there were more seminars and speeches about
EVs than ever before. As technology continues to advance relentlessly,
the question is no longer when change will happen; it is how.
Electrified Vehicle Registration
VEHICLE CATEGORY
Plug-in
Plug-in
Hybrid
Hybrid
Pure electric
Other electric
Petrol-electric
Diesel-electric
JULY
2018
881
3,669
6,173
11
JULY
2017
860
2,749
5,217
44
%
YTD
CHANGE 2018
2.4
8,322
33.5
25,591
18.3
49,367
-75.0
272
YTD
%
2017 CHANGE
8,554
-2.7
18,452
38.7
40,029
23.3
471
-42.3
(Source: EV Registrations, SMMT July 2018)
IT’S NOT ALL GREEN WITH EV
A recent press release from the ACEA has revealed that the European
Commission underestimates the impact of a forced push for electric
cars on EU employment. According to the FTI report, Europe’s
automotive suppliers are expected to produce roughly 38% less parts
and components for electric cars, compared to a loss of around 17% for
automobile manufacturers. The study points out that many of these
suppliers in the EU are SMEs, who are likely to struggle more with
making the transition in a short timeframe than car manufacturers.
RARE EARTH POWER
While it is estimated that batteries will make up 35-50% of the cost of
an electric car in the future, it is uncertain if they will be produced in the
EU or not. The sector will become extremely dependent on rare-earth
materials that are sourced outside of Europe.
With the automotive industry today accounting for more than 20% of
total manufacturing employment in EU regions like the UK, a forced
push to electric cars will likely affect jobs.
4 THE FUTURE OF THE AFTERMARKET
With more demand for EVs the automotive sector will be come extremely dependent on rare-earth
materials that are sourced outside of Europe
ACEA Secretary General has expressed that it is imperative for the
entire automotive supply chain to transform at a manageable pace in
order to protect employment and long-term viability of the sector. He
further added, “The report makes it evident that overly-stringent CO2
targets, as well as unrealistic sales quotas for electric vehicles, could lead
to serious structural problems across the EU.”
(Source: https://www.acea.be/press-releases/article/negative-job-impact-of-forced-electric-car-push-underestimated-
by-european)
TWO SIDES TO A COIN
Whilst the tone of the press release is quite foreboding, it does not
elaborate on the amount of infrastructure enhancements needed
to support the influx of EVs into the market, with the targets set
by lawmakers. Changing the way we power vehicles will not be an
overnight process, nor will it be as simple as swapping fuel combustion
engines for electric motors.
VITAL NEWS ISSUE 52