The electric car market in the UK has been thriving for years, with consistent subsidies from the government for electric and hybrid vehicles. However, recent news may have a significant impact on both the electric car and utility markets.
National Grid Concerns
The National Grid has announced that it may struggle to power all the expected electric cars on UK roads in the next few years. This announcement implies that the country’s power infrastructure needs investment, which may benefit utility companies like National Grid PLC, SSE PLC, and United Utilities Group PLC. Investment means the potential for these companies will be higher, and the energy use that electric vehicles bring could be an incredible investment.
Honda
Another piece of news that may impact both markets is the shutdown of Honda’s plant in Swindon. While this won’t have a significant impact on the utility side of the markets, it may lead to a dip in Honda’s UK investment. The company may move its production capacity elsewhere, but it doesn’t initially spell good fortune for Honda in the UK, and it may be a warning shot for the rest of the car market.
Ultimately, this is mixed news with a simple short-term solution.