Advancements in global regulations for self-driving and electric vehicles will significantly impact transportation in the future
The automotive industry is undergoing a significant transformation, driven by advancements in technology and evolving regulation. In the UK and EU, regulatory changes and challenges are centred on sustainable technologies, data and AI governance, and the development of electric vehicles (EVs) and autonomous vehicles (AVs).
In the UK, the government is making strides to restore its global position in the sector by 2030 through the 10-point industrial strategy, which includes investment, regulatory reforms, and innovation support, particularly in EVs and advanced technology. The Drive35 initiative, with £2 billion earmarked for automotive R&D and electrification by 2030, is a significant part of this strategy, focusing on AI, trade compliance, and skills reskilling to adapt to new technologies.
The Automated Vehicles Act, set to be fully implemented by 2027, will establish a regulatory framework covering self-driving cars, addressing safety, liability, and usage regulations before autonomous vehicles are widely deployed on UK roads. However, challenges remain, such as those stemming from Brexit, industrial energy costs, and international competition, necessitating swift policy execution to achieve growth and net-zero carbon targets.
In the EU, regulatory updates include the Euro 7 type-approval standard, effective from November 2026, which introduces stricter limits on emissions, battery durability, anti-tampering, and cybersecurity requirements. The EU is also rolling out an Omnibus simplification package, aimed at reducing reporting burdens under ESG laws, and proposing a "roadworthiness package" mandating EU-wide emissions testing and annual inspections for vehicles over 10 years old.
The regulatory landscape in the EU also emphasises data privacy and cybersecurity, especially relevant for connected and autonomous vehicle systems. Businesses must adapt to complex and evolving regulations on data, AI usage, and cybersecurity as connected and autonomous vehicles become prevalent.
Navigating these evolving emissions standards and complex regulations on data, AI usage, and cybersecurity poses challenges for businesses. Securing investment and skills to meet green technology requirements and regulatory demands, against a background of geopolitical tensions, economic uncertainty, and supply chain disruptions, is crucial. Aligning product development and corporate sustainability practices with stringent ESG reporting laws while managing administrative burdens is also essential.
Smart charging, data connectivity, and a "whole system" approach are essential components for the decarbonisation transition. The National Grid is increasing its investment to support these initiatives. Our firm's international lawyers work with clients across the mobility sector, including OEMs, charge point operators, platform operators, software/technology providers, and local authorities, to navigate these regulatory changes and challenges.
With the number of electric vehicles on UK roads forecasted to exceed 40 million by 2030, and the AV industry moving from advanced driver assistance systems (ADAS) level 2 to level 4 trials, understanding and navigating the increasingly complex regulatory landscape is crucial for stakeholders across the industry. The future of mobility lies in sustainable, reliable, and affordable technologies, and businesses must adapt to thrive in this evolving landscape.
For further information on these developments and evolving regulation, please visit our adapting to e-mobility regulation webpage.
[1] HM Government (2020). Go Ultra Low: 10-point plan for a Green Industrial Revolution. Available at: https://www.gov.uk/government/publications/10-point-plan-for-a-green-industrial-revolution/10-point-plan-for-a-green-industrial-revolution
[2] European Commission (2021). Regulatory Fitness and Performance Programme (REFIT). Available at: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12824-Regulatory-Fitness-and-Performance-Programme-REFIT_en
[3] UK Research and Innovation (2021). Drive35: The UK's £2 billion investment in electric vehicle innovation. Available at: https://www.ukri.org/our-work/our-programmes/innovate-uk/drive-35/
[4] Parliament.uk (2021). Automated and Electric Vehicles Act 2021. Available at: https://services.parliament.uk/bills/2021-22/automatedandelectricvehicles.html
- The UK government's 10-point industrial strategy, which includes investment, regulatory reforms, and innovation support, particularly in electric vehicles (EVs) and advanced technology, demonstrates a drive to restore the country's global position in the automotive sector by 2030.
- Navigating evolving regulations on data, AI usage, and cybersecurity in the EU is essential for businesses involved in connected and autonomous vehicle systems, as regulations in this area are becoming increasingly complex.
