Industry Trends And Regulations In The Automotive Sector

It’s fair to say that the automotive industry has come on in leaps and bounds over the past decade alone. Progressions in the electric vehicle (EV) movement mean we now have the tools to work towards a low-emission future. Meanwhile, self-driving vehicles are set to be on the roads by 2026.

But with these developments comes a need for updated regulations to keep people safe. If you own a business in the automotive industry, it’s important to stay in the loop with industry trends and upcoming legislation. Certain elements may impact your business more than you might expect. Here are some things to consider.

Emerging technologies

Electric vehicles, autonomous driving and connected cars are just some of the automotive trends that have been witnessed in the UK and further afield.

There has already been a profound impact on automotive supply chains, with new models and makes requiring different materials, parts and technology. Traditional suppliers are also likely to see a reduced demand for elements such as combustion engine components, while suppliers of batteries and electric components are likely to receive more demand than ever.

Elsewhere, new opportunities are being created to accommodate software development in connected cars.

As dealerships begin to embrace the shift to new car trends, this means staff are being trained on this new technology and maintenance so they can advise customers accordingly.

Regulatory landscape

If you work in the automotive industry, you need to be aware of regulations that could influence the way your business operates, either directly or indirectly.

ULEZ low-emission zones in urban areas are one key example of how the transition to EVs is being encouraged. In the meantime, the government is investing heavily to create new charging points and is offering grants to encourage people to installthem outside their homes. EV owners alsobenefit from tax relief to make them more appealing.

Before autonomous vehicles are placed on the roads, they must undergo rigorous self-driving tests. The Automated Vehicles (AV) Act has been put in place, with the law demanding that self-driving vehicles meet a level of safety that’s on par with human drivers.

The rise of connected cars means new regulations arebeing created in the interest of privacy and cybersecurity. To minimise the threats surrounding this, there’s a need to monitor this industry closely. R&D departments are putting a lot of resources into this.

Regardless of the type of automotive business you own or work for, there’ll be an increasing need to facilitate these changes. Whether that means reviewing part-time motor insurance packages to better suit your business needs or investing in new technology to suit evolving manufacturing demand, taking a proactive approach will allow you to embrace this ongoing change.

Image by WDA Automotive