In an exclusive guest comment for Just Auto, Ben Palmer an automotive sector specialist at European IP firm Withers & Rogers, describes the importance of IP strategies in the evolving electric vehicle market.
Despite the slowdown in the sale of new EVs last year, car makers in the UK and Europe know that they must continue to invest to remain competitive and secure a slice of a market that is only going to expand.
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Specifically, there is an opportunity for manufacturers to secure a competitive advantage by continuing to invest in innovation and adopting a forward-looking intellectual property (IP) strategy.
The EV market has become increasingly challenging for car makers globally and this is set to continue in 2025. Regulatory pressures are forcing them to produce more EVs at a time when demand in some key markets seems to be faltering, and consumer appetite for ICE vehicles remains strong. The arrival of cheaper EV imports, principally from China, combined with concerns about infrastructure readiness and resale values, are impacting the sale of new BEVs.
Despite private demand for EVs being weaker than expected, approximately 381,970 battery electric vehicles were sold in the UK in 2024 and Britain has recently overtaken Germany and France to become Europe’s biggest electric car market. However, with the sale of BEVs representing 19.6% of the new car market last year, they are still not growing as fast as the UK Government would like.
Globally, the automotive industry is responding to market challenges in a variety of ways. Volkswagen announced plans to close several production facilities in Germany last year, although this decision has since been reversed following pressure from unions. There is also much more evidence of industry collaboration and strategic partnerships, with manufacturers looking to accelerate product development and drive economies of scale. For example, Rivian and Volkswagen confirmed their joint venture last November and there has also been some market speculation about a potential merger of Honda and Nissan.
Putting the brakes on R&D spending and platform development is not an option for car makers that want to survive and thrive in the EV marketplace of the future. Despite considerable uncertainty about how technologies and the market might evolve, manufacturers can’t afford to take a ‘wait and see’ approach. Doing so would mean they lose ground to competitors and limit their attractiveness to potential partners.
From an IP perspective, manufacturers must stay focused on building a strong, forward-looking patent portfolio, with the aim of developing sector-leading products, regardless of whether they are applicable to BEVs or HFCEVs. This hedging strategy could bring significant commercial benefits in the short and long term. For instance, with EV repair costs projected to increase by 30% by 2027, companies with market-ready battery repair technologies could gain a significant competitive advantage in the future. Similarly, companies looking for ways to reduce production costs through centralised vehicle architecture or giga casting, for example, could reap the rewards by offering OEMs an opportunity to cut costs and assembly time. Manufacturers could also find that technologies that they are seeking patent protection for currently are applicable to multiple EV platforms, which means they could generate significant value through cross-licensing deals, as well as attracting M&A opportunities.
Optimising IP portfolios now will ensure that manufacturers across the value chain are ready to take advantage of growing EV sales in 2025 and beyond. Essentially, this means prioritising IP investment by protecting technologies where there is greatest value-generating opportunity and raising IP understanding internally in readiness for cross-industry collaboration.
Being IP-ready to engage with industry partners in the right territories, at the right time, is critical in a fast-developing market. In a bid to improve their resilience and sustainability, EV makers are increasingly looking to establish local supply ecosystems, which means locating production facilities closer to suppliers of critical raw materials and components and, where possible, to vehicle assembly. From an IP perspective, this might require a change of approach. Specifically, it may be necessary to consider patenting technologies in a broader range of European territories, such as Scandinavia, which could be a key location for battery gigafactories in the future, and Eastern Europe, which could become a key location for vehicle assembly. With considerable uncertainty about the shape of the EV industry, it may be wise for manufacturers to patent technologies in more geographies than would normally be required in the short term.
In summary, waiting for incentives that may never come and EV sales to surge is not a recipe for success. Manufacturers must build strong IP portfolios to ensure they are well positioned to compete and increase their market share.
Ben Palmer
Ben Palmer is a partner and automotive sector specialist at European IP firm, Withers & Rogers.
