The non-profit organization Cenex, established in 2015, focuses on low-carbon transport, related energy infrastructure, and items including project delivery, innovative technology support, and market development. It has observed the development of the UK automotive industry to a certain level.
A grand annual event for the automotive industry, the Cenex Expo is hosted by Cenex and is held every September in Milton Keyes. Robert Evans has been the CEO of Cenex for 18 years. During his interview with Digitimes, he stated that he has watched the UK automotive industry go through a complete change over the years.
Although Cenex has always focused on reducing carbon emissions and transport decarbonization, it has met many challenges during its early stages including immature technology and unclear technical development direction.
The UK government also quickly became aware that low-carbon transport is an opportunity for the UK automotive industry to gain competitive power. Thus, a better environment can be created when the government and industry are willing to invest equally.
The United Kingdom began investing in hydrogen vehicles and electric vehicles (EVs) a long time ago. Other than business opportunities for batteries, there is also demand for electric motors, electronics, and drive wheels, so the semiconductor industry began to receive attention as well. Vehicles and transportation including powered agricultural equipment and connected and autonomous vehicles (CAV) slowly became the trend.
The United Kingdom's innovation ability reflects the diversity of the ecosystem, and the United Kingdom is experiencing the continual business expansion of different types of innovation. The United Kingdom is searching for overseas companies to make a joint venture in construction. Aside from Taiwan-based startups, there are also companies from China and India who have expressed eager interest.
Changes to automotive industry sweeping the world
The chip shortage that swept across the global automotive industry in 2022 also directly impacted the UK automotive industry. Evans stated that because next-gen vehicles would require more electronic equipment and semiconductor demand would be greater, the supply chain collaboration structure would become even more important.
COVID-19 accentuated the issue of supply chain tenacity. Thus, when collaborating with international businesses, how they embed into the local supply chain power is crucial. This is also why the UK government is encouraging investments from overseas supply chains.
According to investigations, China-based brands have taken up about 10% of EV sales in the United Kingdom. Evans also offered his viewpoint regarding this.
The United Kingdom is not the only one that is facing the changes within the automotive industry, the whole world is. In regards to this, the United Kingdom is maintaining an optimistic and open attitude leaning towards free trade and economic development. It will treat any brand that enters the UK market equally, whether China-based or not.
In addition, aside from the UK market being highly accepting of startup brands, purchase methods for consumer cars have also been changing. For example, reduced chances of physically entering exhibition rooms.
