Car industry calls

for EV help

On-street EV charging, 2024, Vauxhall Mokka

THERE was good news and bad for Britain's car makers last month, prompting a call for urgent government help from the motor industry.

September is normally a boom month for new car sales thanks to the switch to the latest registration plate, but it turned out to be something of a damp squib with a mere one per cent increase in sales compared with last September.

Even so, the introduction of the new '74 plate saw the best September sales performance since 2020, although registrations were still almost 20 per cent lower than those in pre-Covid September 2019.

And while sales of battery electric vehicles (BEVs) hit a new record volume for any month, up 24.4 per cent to 56,387 units, achieving a 20.5 per cent share of the overall market, only 410 more BEVs were sold to private buyers than in September 2023 with most of the growth down to fleet deals.

Hybrid power remains a more popular choice amongst buyers with a 32 per cent growth in sales of plug-in hybrids while sales of self-charging hybrids also increased.

In spite of the September boost, sales of BEVs to private buyers so far this year are down by 6.3 per cent on the first nine months of 2023 in spite of what trade body, the Society of Motor Manufacturers and Traders calls "unprecedented manufacturer discounting".

Says the Society: "Previous assumptions of a market delivering steady BEV growth, cheaper and plentiful raw materials, affordable energy and low interest rates have not come to fruition, with the upfront cost of BEV models remaining stubbornly high.

"Added to this is consumers' lack of confidence in the UK's charging provision - despite recent investment and growth - which still acts as a barrier to BEV take up."

The SMMT calculates that manufacturers are on course to spend at least £2 billion on discounting EVs this year and says: "Given the many billions already invested to develop and bring these models to market, the situation is untenable and threatens manufacturer and retailer viability."

Now the SMMT and 12 car manufacturers have written to Chancellor Rachel Reeves pleading for help and calling for measures to support consumers and speed up the pace of the EV transition.

These include temporarily halving VAT on new EV purchases, equalising VAT on public charging to match the five per cent home charging rate and mandating charging infrastructure targets to support potential buyers who cannot charge at home.

The SMMT's chief executive, Mike Hawes, emphasised: "September's record EV performance is good news, but look under the bonnet and there are serious concerns as the market is not growing quickly enough to meet mandated targets.

"Despite manufacturers spending billions on both product and market support - support that the industry cannot sustain indefinitely - market weakness is putting environmental ambitions at risk and jeopardising future investment.

"While we appreciate the pressures on the public purse, the Chancellor must use the forthcoming Budget to introduce bold measures on consumer support and infrastructure to get the transition back on track, and with it the economic growth and environmental benefits we all crave."

LATEST MOTORING NEWS

HYUNDAI has given its Bayon crossover SUV a facelift and the new model comes...

Read more View article

AFTER its launch in 2008, the Ford Kuga has grown from the company's first...

Read more View article

JAPANESE brand Subaru is a niche manufacturer that enjoys an excellent...

Read more View article

LATEST NEWS

Google+