Economic factors such as rising prices, borrowing costs, and global trade policies still play a major impact in influencing the UK car market. As manufacturers endeavor to regain stability from the disruptions of the past few years, these economic conditions influence manufacturing costs, pricing approaches, and overall market dynamics (Grant Thornton) (EY).
Inflation and increased borrowing costs have a significant impact on both production and buyer spending ability. Auto makers are obliged to find economical production processes, like large-scale casting, to maintain profitability while remaining price-competitive. These economic challenges also impact consumer behavior, with higher interest rates possibly reducing interest in new cars (Grant Thornton) (EY).
Global trade policies, particularly those concerning tariffs on electric vehicles from non-European Union nations, introduce another dimension of challenge. The continuous review of state assistance for Chinese electric vehicle manufacturers and potential tariff increases could automotive lead to market adjustments and impact pricing tactics. As the industry handles these issues, it continues to be committed to new ideas and cost-saving measures to support growth and satisfy buyer needs (Grant Thornton) (EY US).