Automotive Business Magazine – Q2 2026 – Digital edition - Magazine - Page 67
FEATURE
INDUSTRY OUTLOOK
models available. None of this is likely
to change significantly in 2026 without
revisions to Government policy.”
Holt says: “To hit ZEV Mandate targets,
momentum will increasingly depend
on whether policy feels supportive or
contradictory. Businesses are making
investment decisions with five- to 10year horizons, and in 2026, the market
will be highly sensitive to signals that
either reinforce or undermine long-term
certainty.”
He explains that fleets will lead
adoption, but purchasing cycles may be
longer, and infrastructure investment will
be more cautiously phased.
Another aspect of the transition
is policy and incentives. Versteegen
explains that mixed policy signals and
costly public charging could continue to
undermine confidence in EVs in 2026,
especially for buyers already concerned
about upfront costs and resale values.
He adds: “For buyers not yet confident
enough to make the switch, hybrid
vehicles will continue to be a bridge
technology.”
Bengtsson reinforces the importance
of fleets in the UK's transition to electric.
While it is a more complex process for
fleets to make the move, the more clarity
given by the Government – and further
developments to infrastructure – will be
“crucial going forward.”
She adds that it is likely there will be
a year-on-year rise in battery electric
vehicles (BEV), but says: “The pace of
this uptick is likely to ease slightly as we
move further into the pursuit of mass
EV uptake, and away from the early
adoption phase."
AI for automotive
From electrification on one side, to
advancements in technology and AI
on the other, the march of progress
continues in 2026.
The AI debate in automotive is, like
everywhere else, deeply divided between
those who believe it will revolutionise
the sector, and those who treat it with
distrust and even fear.
Versteegen says: “Many brands and
dealers are already experimenting with
generative AI to produce content at
scale, but this rapid adoption is also
exposing new risks that the industry is
only beginning to understand.
“AI-generated vehicle images, for
example, cannot be owned, protected
or reliably traced back to licensed
source material, creating legal and
brand exposure. In addition, subtle
distortions or ‘hallucinated’ design details
can quietly undermine manufacturer
confidence and accuracy.”
Nevertheless, many industry
professionals welcome the technology,
saying it will manage the rapid scaling up
of EV charging infrastructure and handle
a wide range of administrative tasks.
Evans explains that 83% of the charge
points required by 2035 still need to
be installed.
As the UK gets closer to meeting these
targets, operators will face networks
10-times larger than today's; without
smarter processes, utilisation and
performance will suffer.
He says that AI can change this “by
enabling smarter fleet and network
management, predictive maintenance,
and real-time data insights.”
AI has also been integrated into the
automotive retail sector, with dealers
deploying it for the administration and
automation of their tasks.
Jens-Peter Sjöberg, chief innovation
officer at Phyron, explains that 2026 is
the year for “full-scale deployment” of AI
systems across automotive retail.
He adds: “Dealers in the UK and across
Europe are already leading this transition,
and they will treat automation as core
infrastructure rather than a bolt-on tool.
That means faster adoption of video
and AI-driven storytelling as standard
marketing practice.”
Sjöberg and Versteegen agree that
speed and cost efficiency are recurring
themes when dealers consider adding AI
to their workflows. Dealers also want to
see a measurable return on investment
(ROI) from the technology they are
implementing, as well as systems that
focus on compliance and safety.
AI is also having an impact on search
engines. Versteegen advises that fleet
providers and dealers should adapt
quickly to ensure they are being cited in
Google’s AI summary.
He adds: “Focus on Generative Engine
Optimisation (GEO) is crucial for all
vendors. Unique digital vehicle images
are helping companies with their GEO
goals and to stay on top of the game.” →
Q2 2026
AUTOMOTIVE BUSINESS
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