Industrial Risk or Strategy? With Daniel Fung | Future Engineering Bets

In this episode of Future Engineering Bets, Fred Warner is joined by Dan Fung, Head of Strategy and Performance at the Advanced Propulsion Centre (APC), to unpack one of the biggest challenges facing the UK industry: Why we’re great at innovation… but struggle to scale. From £4bn of funding and EV strategy to global competition with China, this conversation breaks down the reality of industrial strategy, electrification, and where capital should be heading next. If you're a CEO, investor, OEM, or Tier 1/2 supplier trying to understand where the market is heading, this episode will give you a grounded, insider perspective. In this episode: Why the UK struggles to scale innovation beyond R&D How £4bn of APC funding is being deployed across the industry The reality of EV demand vs policy (and impact on OEMs like Honda) How companies like BYD are reshaping the global automotive market The truth about battery overcapacity and gigafactories (Nissan, JLR) Net zero vs practical engineering decisions in real-world applications Where the UK can compete (motorsport, high-performance, niche vehicles) Where investment is going: software-defined vehicles, automation & connectivity Chapters: 00:00 Intro & Dan Fung (APC) 02:30 £4bn funding & Drive35 explained 03:40 The UK’s innovation vs scale problem 06:00 Does funding actually deliver results? 10:00 Why the UK struggles to scale 13:30 UK vs China & global competition 16:20 Net zero vs practical engineering 21:00 EV demand vs reality 24:15 China’s speed & innovation model 28:45 Battery overcapacity & gigafactories 31:40 Manufacturing & scaling challenges 34:00 Where to invest next 39:00 Final thoughts About Future Engineering Bets: Future Engineering Bets is for CEOs, board members, and private equity investors making high-stakes decisions in electrification, energy transition, and advanced engineering strategy. Get a boardroom-level view of the engineering decisions shaping billions in capital investment and defining the future of automotive and mobility. Each episode breaks down the engineering, commercial, and strategic realities behind topics such as: Electric vehicles and the global EV transition Hybrid powertrains and the future of internal combustion Hydrogen, sustainable fuels, and emerging propulsion systems Product strategy and R&D investment at OEM and Tier 1 level Market dynamics across Europe, the US, and China The impact of regulation versus real consumer demand If you are responsible for product direction, capital allocation, or technology strategy, this series will help you think more clearly about where to place your next bet. About Fred Warner: Fred Warner, Founder of 7Q Ltd (https://7q.ltd/), is a specialist partner and Chartered Engineer connecting capital investment with no nonsense value creation. With a background spanning motorsport, aerospace, automotive, clean tech, rail, and electronics - including experience across F1, Honeywell, GE, and Meggitt - Fred works with CEOs, boards, and investors on high stakes engineering and R&D programmes. Connect with Fred on LinkedIn:   / fred-warner   About Dan Fung & the Advanced Propulsion Centre (APC): Dan Fung is Head of Strategy & Performance at the Advanced Propulsion Centre UK (APC), an organisation established to accelerate the UK automotive industry’s transition to net zero while supporting innovation, jobs, and global competitiveness. Backed by government and industry, APC deploys significant funding into cutting-edge automotive technologies, helping companies bring new products to market and scale manufacturing in the UK. Learn more: 🌐 https://www.apcuk.co.uk/ 🔗   / advanced-propulsion-centre-uk