When British automaker Jaguar released the I-Pace in 2018, it showed promise for the company’s future in the EV market, as it competed directly against Tesla in the luxury sector. However, despite the high praise and good public opinion, Jaguar did not release nor announce another EV, that is, until February 2021, when it suddenly announced that it would have an all-electric lineup by 2030.
However, the truth is not as simple. The main problem for Jaguar is that regulations in the UK and a large portion of Europe are changing. Most countries are planning to outlaw the sales of 100% petroleum or diesel-powered cars, forcing all manufacturers to change their game plan, or leaving them completely out of business.
According to Theo Leggett, a Business Correspondent at BBC, electric cars are much harder to produce and cost more to develop compared to traditional diesel or gasoline vehicles. While “Bigger manufacturers can throw money at the problem now, and hope to benefit from economies of scale later,” smaller companies such as Jaguar will struggle to keep up with increasing R&D costs while completely revamping their entire fleet of vehicles.
While the intentions of these changing laws are good, such developments will force several companies to shed weight, as already evidenced by Jaguar’s plans to cancel production plans of an all-electric XJ at its Castle Bromwich plant, one of its three plants located inside the UK. It is undeniable that these companies will struggle to keep up with the new regulations. However, the change that this will ultimately bring is undoubtedly positive, and a future of streets filled only with electric cars is closer than we believe.
The world of automakers is rapidly changing, with major players such as China also implementing similar regulations in the near future. With these two major markets, Europe and China, changing their automotive and emissions regulations, companies around the world will have no choice but to change their methods and invest in new technologies: the end of fossil fuel cars is fast approaching.
Categories: Student Interest