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:
Legacy ICE investments still need to be recovered
New EV platforms require massive upfront capital
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