The Society of Motor Manufacturers and Traders (SMMT) has called for greater support for private retail uptake of electric vehicles (EVs).
 
Analysis of new car registrations in 2020 shows that just 4.6% of privately bought cars were battery electric vehicles (BEVs) – compared to 8.7% for businesses and large fleets. In total, consumers registered 34,324 BEVs in 2020, compared to 73,881 corporate registrations.

To level the playing field, the SMMT has launched a blueprint to deliver greater retail uptake – calling for government and stakeholders to prioritise overcoming consumer concerns through fairer incentives and a commitment to expanding public charging infrastructure.

Consumer acceptance of EVs remains low, says the SMMT, because of concerns over affordability, charge point availability and infrastructure reliability. Around one in three households have no dedicated off-street parking, leaving them disproportionately dependent on public charging points – of which around one in 10 are out of order at any given time.

The government’s decision to reduce the plug-in car grant for pure EVs from £3,000 to £2,500 has drawn criticism from the UK automotive industry.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), stated that the decision is “the wrong move at the wrong time,” adding that new battery technology is more expensive than conventional engines, meaning that incentives are essential to making these vehicles affordable.

In addition to the slash to grant amount, the government has also reduced the list price cap from £50,000 to £35,000. Changes are effective immediately.

Defending the decision, transport minister Rachel Maclean, said: “The increasing choice of new vehicles, growing demand from customers and rapidly rising number of chargepoints mean that, while the level of funding remains as high as ever, given soaring demand, we are refocusing our vehicle grants on the more affordable zero emission vehicles – where most consumers will be looking and where taxpayers’ money will make more of a difference.”

Leading British car manufacturers attempted to obstruct the government’s decision to advance the ban on ICE vehicles from 2040 to 2030, according to written submissions obtained by the Guardian.

Citing concerns over declining sales and job security, manufacturers such as BMW, Ford, Honda, Jaguar Land Rover and McLaren lobbied against any ban earlier than 2040.

The manufacturers also argued that hybrids should also be exempt from the earlier deadline, alongside ambulances and hearses.

Based on guidance from the Committee on Climate Change, the government revealed its decision in November, which saw the ban on pure internal combustion engine cars (ICE) brought forward from 2040 to 2030 with the sale of hybrids permitted until 2035.

Cox Automotive has confirmed the acquisition of Codeweavers, a provider of commerce solutions and finance software for manufacturers, retailers, and lenders.

The acquisition of Codeweavers forms a part of Cox Automotive’s strategy to double the size of its operations by 2034 and stand as number one operator in the market.

Retaining its current brand, Codeweavers will sit alongside Cox Automotive’s existing digital marketing and retail solutions business – Modix.

Cox president, Martin Forbes, said: “Today’s acquisition is an integral part of our strategy to help our customers develop a strong digital retail presence.

“One of the key benefits of Codeweavers is their expertise, knowledge and product will complement those of Modix. Today’s acquisition of Codeweavers will help establish Cox Automotive to become one of the major providers of digital retail solutions to automotive manufacturers and dealer groups across the UK and Europe.”

Dealers need to be ready for a greater level of consumer interest in their finance commissions, driven by increased media interest and new FCA regulations.

This is according to MotoNovo Finance, who highlighted a recent article that suggested consumers could save a typical £1,100 on their car finance by questioning commission rates.

The FCA’s new CONC rules are also intended to ensure consumers have better knowledge of dealers’ finance commissions and are ‘more likely to engage with what is on offer’.

The updated CONC rule requires dealers to ensure customers are aware of the existence of any commission, fee or other remuneration ahead of any finance agreement being finalised. The prominence required in disclosing the existence of commission will inevitably lead to more people asking; ‘how much?’

The right to access commission details is not new, according to MotoNovo, but in light of the other changes and inevitable publicity, dealers should anticipate more requests for full commission disclosure, perhaps more especially as showrooms re-open.