According to Fleet News, there are growing calls for a review of the UK’s ZEV mandate, with some manufacturers arguing that EVs aren’t currently profitable.
At face value, that sounds concerning. But scratch beneath the surface and it’s a bit more nuanced.
The industry is in the middle of a once-in-a-century transition:
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Legacy ICE investments still need to be recovered
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New EV platforms require massive upfront capital
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And global competition, particularly from China, is ramping up fast
So yes, margins are under pressure. But that’s not unusual during a transformation of this scale.
The bigger question raised was this:
Are we measuring success using the right metrics?
Because focusing purely on short-term profitability risks missing the bigger picture, market share, innovation, and long-term positioning.
From The EV Café sofa
This isn’t a failing market, it’s a market in flux.
“Is it too simplistic just to use profit as the key marker of value?” John Curtis
“There’s going to be a huge amount of change in the OEM world.” Sam Clarke