In brief

27 July 2021

The month of June’s light vehicle sales have now been reported for all global markets. While they show a 9.4% year-on-year increase, this was slightly below the forecast 14.9% gain for the month, with China’s 12.7% fall in sales the most significant contributor to the weaker than anticipated market.

Although the market’s sales increased positively year-on-year it was once again a largely disappointing month for sales. The SAAR rate – at 81.9m – was ahead of May’s value, but it was some way off the levels seen in March and April which offered promise of an orderly recovery to global markets.

Performance in West Europe remained lumpy with Germany, Italy, and France leading SAAR gains while the Spanish and UK markets saw selling rates fall back. Markets outside the Big Five largely followed the lead of the stronger performing markets.

Chip shortages are beginning to materially affect sales in the US, Japan, and China which we expect to continue to choke sales into the start of Q4.

26 July 2021

The annual cost of running an electric car is 47% cheaper than running a petrol car, according to research from comparethemarket.

The data revealed that running an electric vehicle for a year costs £1,091 on average, compared with £2,062 for a petrol vehicle – a total difference of £971.

The research takes into account insurance, fuel, and road taxes. For electric vehicle drivers, car insurance is more than half of the annual running costs at £583 for a typical premium, while charging costs £454 per year on average.

The annual cost of driving an electric car has fallen by £77 in the most recent six months, due to a drop in car insurance for electric vehicles and in energy costs.

Despite the cheaper running costs, the up-front price of electric vehicles is likely to be a barrier for drivers wanting to make the switch.

16 July 2021

It will be increasingly difficult for motor finance companies to operate with a fixed-rate finance ‘one size fits all’ offering, says MotoNovo Finance.

Jon Slater, MotoNovo’s chief strategy and marketing officer, believes that COVID has changed the consumer credit dynamic. “While some people have been able to save money, sadly, many others have encountered financial challenges. Alongside this have been improvements in financial literacy gained during lockdown, notably amongst the vital millennial sector.

“Today, we must better meet the needs of increasingly well-informed customers across the credit curve. In car finance, one size will not fit all.”

Slater said the challenges facing dealer finance in meeting customer needs are being complicated by the returning lending appetite of personal loan providers. The pandemic saw many providers restrict their lending to protect themselves from an economic downturn, however confidence now seems to be growing.

15 July 2021

The UK government says it has unveiled the world’s first plan to decarbonise all modes of domestic transport and reach net zero emissions by 2050, but the UK motor industry trade body has warned that an ambitious infrastructure plan will also be needed if the Government is to achieve its targets.

The long-awaited ‘greenprint’ plan was released yesterday just months ahead of COP26, a major global climate summit to be held in Glasgow. The plan contains a “world-leading” pledge to end the sale of all new polluting vehicles and move towards net zero domestic aviation emissions by 2040.

Transport Secretary Grant Shapps said: “The Transport decarbonisation plan is just the start – we will need continued efforts and collaboration to deliver its ambitious commitments, which will ultimately create sustainable economic growth through healthier communities as we build back greener.

Other notable features of the plan include the news that new diesel and petrol lorries will be banned in Britain by 2040 while polluting lorries weighing under 26 tonnes will be phased out by 2035.

12 July 2021

SOGO has launched an all-inclusive monthly leasing service for businesses, with no upfront costs, servicing or breakdown cover fees.

Called SOGO Flexi, the service features a range of vehicles available for leasing – including an Audi E-Tron SUV 300kW 55 Quattro 95kWh Black Edition from £1,095 + VAT, a Renault Zoe 100kW i GT Line R135 50KWh Rapid Charge 5dr Auto from £200 + VAT, BMW X5 M sport £625 + VAT. All offers are based on 1,000 miles a month.

Karl Howkins, managing director of SOGO, said: “In an economy that is rapidly changing, businesses want a simple and flexible answer to mobility. We believe that our new Flexi service offers good value for money, unbeatable monthly flexibility and one simple charge to aid budgeting.

“It means our customers know they can have the vehicles they need to operate efficiently without carrying the overhead costs in quiet periods.”

7 July 2021

Vehicle manufacturers are deliberately exaggerating the range of their latest electric models by up to 30%, according to electric vehicle (EV) leasing company Fleet Evolution.

Andrew Leech, managing director at Fleet Evolution, said that it was common for manufacturers to “wilfully overstate” EV range figures to attract buyers. When customers find out the actual range of electric models does not match published figures, it can put them off making the purchase.

“Running out of battery charge is not quite the same as getting low on petrol or diesel as charging is less straightforward than simply popping into a filling station and topping up, and it can lead to some anxious moments for drivers,” Leech said.

Leech said that some of the worst culprits were luxury manufacturers such as Jaguar, Mercedes and Tesla, while Korean car makers Kia and Hyundai tended to publish more accurate figures.

5 July 2021

The UK consumer car finance market reported growth in new business volumes of 327% in May, according to the latest figures from the Finance & Leasing Association (FLA).

Looking at the first five months of 2021, new business volumes were 37% higher than in the same period in 2020.

In the new car finance market, new business volumes increased 514% year-on-year in May, while the value of new business grew by 555%. In the first five months of 2021, new business volumes in this market were 32% higher than in the same period in 2020.

The used car finance market reported new business volumes up by 270% year-on-year in May, while the value of new business grew by 293%. In the first five months of 2021, new business volumes in this market were 39% higher than in the same period in 2020.

The percentage of private new car sales financed by FLA members in the twelve months to May 2021 was 92.9%.

5 July 2021

Supply issues continue to pose a problem for the new car market, with registrations struggling to reach pre-pandemic levels, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

New car registrations in June were up 28% year-on-year to 186,128. However, the performance was artificially lifted through comparison with a year ago, when the UK began to emerge from the first lockdown.

“With the final phases of the UK’s vaccine rollout well underway and confidence increasing, the automotive sector is now battling against a ‘long COVID’ of vehicle supply challenges,” said Mike Hawes, chief executive of the SMMT.

“The semiconductor shortages arising from COVID-constrained output globally are affecting vehicle production, disrupting supply on certain models and restricting the automotive recovery.”

1 July 2021

Nissan has unveiled EV36Zero, a £1bn electric vehicle (EV) hub based at its Sunderland plant, creating around 1,650 jobs.

As part of the investment, Nissan’s partner Envision AESC will build an electric gigafactory, to increase production and provide batteries to power 100,000 Nissan EVs per year. Built adjacent to the Nissan plant, the new plant promises to increase the cost-competitiveness of EV batteries produced in the UK, using a new Gen5 battery cell with 30% more energy density for range and efficiency.

“This is a landmark day for Nissan, our partners, the UK and the automotive industry as a whole,” said Ashwani Gupta, chief operating officer at Nissan. “EV36Zero will transform the idea of what is possible for our industry and set a roadmap for the future for all.”

Of the £1bn investment, the Japanese carmaker will invest up to £423m to produce a ‘new-generation all-electric’ vehicle in the UK.

Production in Sunderland will create 909 new jobs at the plant, and more than 4,500 in the UK supply chain, while safeguarding a further 75 R&D jobs.

1 July 2021

The RAC has launched an electric vehicle (EV) leasing service in collaboration with Hitachi Capital Vehicle Solutions, to encourage greater uptake of EVs in the UK.

A range of EVs will be available on the site, with prices starting at £227.99 per month for a five-door Nissan Leaf 100kw N-Connecta 40kWh.

The RAC said that while prices are extremely competitive, EVs can work out cheaper than petrol models when factoring in savings on fuel. For example, 10,000 miles of petrol for a car capable of doing 50 miles per gallon would set drivers back in the region of £1,179 a year at the current UK average price of 131p a litre in stark contrast to equivalent electricity cost of around £167 (based on Nissan Leaf price) – a saving of more than £1,000 (£1,012) a year.

Additionally, as EVs are exempt from car tax, there’s a further saving of nearly £500 over three years which equates to £163 a year.