Editor's note

Covid cases in the UK have dropped to their lowest point since September, hundreds of thousands of people are being vaccinated every day, and we’re now just two weeks away from pubs re-opening their doors.

Opening alongside the pubs will be car showrooms across the UK, as dealers welcome customers through their doors for the first time this year. Forecasts predict a strong initial rebound in car sales, as months of pent-up demand are unleashed on the market.

Combine this with the fact that public transport is falling out of favour with Brits, and staycations look set to be the order of the day for the foreseeable future, there is certainly cause for optimism in the car industry.

Turning to news, the main auto headlines this month emanated from the government. At the beginning of the month, Rishi Sunak unveiled the 2021 Budget, which was met with some positivity from the industry as both the furlough scheme and business rates holiday were extended to relieve some of the pressure on firms as they start their recovery.

One glaring omission from the Budget however, was any mention of support for the transition to zero-emission vehicles by 2030. This was then exacerbated by a government announcement two weeks later, which revealed that they would immediately be slashing the plug-in car grant for pure EVs down to £2,500 – without any previous industry consultation or warning.

Unsurprisingly, leading figures from across UK automotive were quick to voice their concern with the new measures with Mike Hawes of the SMMT dubbing the decision as ‘the wrong move at the wrong time’.

It certainly does seems like a step in the wrong direction, considering the ambitious Road to Zero targets and the still-significant cost disparity between ICE and electric vehicles. Growth in the sales of BEVs is ongoing but remains far behind the pace needed to meet the 2030 target.

Reducing incentives at this point certainly does seem like the wrong move at the wrong time; we’ll have to wait and see what impact the move will have on the market.

Chris Lemmon, editor