Market Trends of UK Automotive Parts Magnesium Die Casting Industry
Stringent Emission Norms Result In The Demand For Lightweight Vehicles With Better Fuel Efficiency
- The automotive industries in major economies across the United Kingdom have initiated major decarbonization drives and programs to reduce vehicular emissions significantly. This leads to large-scale adoption of electric vehicles, hybrid vehicles, and other new energy vehicles in developed regions. Significant investments in electric vehicle infrastructure development can be observed in developing countries like India. The factors above lead to the growing adoption of lightweight materials, such as magnesium, by the automotive industry.
- The European Union has set the carbon footprint limit for new vehicles at 95 g/km from 2021. However, European automakers have been slow in adopting new rules, and the carbon footprint for many new automotive models is higher than the specified limit.
- In November 2022, the commission presented a Euro 7 standards proposal to reduce air pollution from new motor vehicles sold in the EU to meet the European green deal's zero-pollution ambition while keeping vehicles affordable for consumers and promoting Europe's competitiveness.
- The stated factors provide a significant opportunity for vehicle manufacturers to adopt lightweight materials such as magnesium to attain the specified emission goals. The European Union is also contemplating the Euro 7 standards to achieve climate targets of 2030.
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Growth In United Kingdom Industrial Sector
- The UK industrial sector witnessed a rebound post-Covid-19 pandemic due to steady improvement in factory output and a resurgence in gas and oil production.
- Companies such as Kemlows, Norfran Ltd, Daften, MRT Castings, Carlton Die Castings, and Dynacast are slowly expanding their product range in order to strengthen their market share in the region. The demand for fuel efficiency and the government's emission standards are driving the UK magnesium die-casting market's growth.
- The total number of metal casting plants in the United Kingdom was nearly 380, of which nearly 200 were non-ferrous casting plants. With the increasing demand for luxury automobiles, light metal castings, especially high-pressure die-casted parts, are anticipated to gain prominence in the region.
- Among one-third of foundries, i.E., 70% of them observed their die-casting machines' capacity utilization at less than 70%, while the remaining observed capacity utilization at over 90%.
- During the COVID-19 pandemic, the foundry industry in the country saw overall positive growth owing to the increasing infrastructure projects, like high-speed rail. Additionally, the demand for lightweight auto parts from the automotive industry is likely to drive the foundry industry to invest and adopt more advanced die-casting machinery (CNC machines) in the parts manufacturing process.
