The automotive industry briefing
The latest news, views and numbers you need to know this month
News in Numbers
100,000
Volkswagen Financial Services UK (VWFS) says it has financed a record 100,000 used cars so far this year
£50m
The amount which BP says it plans to invest in a new UK-based EV battery testing centre and analytical laboratory in Pangbourne, Berkshire
19.2%
UK car production fell by this amount in the first six months of 2022 and was primarily due to a shortage of key components, according to the SMMT
18.8%
The used car market slumped by this amount in volume terms in Q2 2022, against a 57.1% increase in sales of battery electric vehicles, the SMMT reported
86%
Eighty-six per cent of dealers say that having to sell older cars creates “specific problems” – with vehicle history, preparation and breakdowns, Startline Used Car Tracker shows
Performance
‘BEV leasing demand increases 72% in Q2’
Leasing continues to drive the new car market’s transition to electric vehicles, as demand for Battery Electric Vehicles (BEVs) increased by 72% in the second quarter of this year, according to new data released by the car leasing comparison website, Leasing.com.
Tough times ahead for car retailers as market slows
Car retailers in the UK will have to deal with increased competition and reduced margins as the market slows in line with the macroeconomic conditions, according to MHA head of automotive advisory Alastair Cassels.
Solera joins Leaseurope as an associate member
Solera, a global provider of vehicle lifecycle management for the automotive and insurance industry, has joined Leaseurope as its latest associate member.
BEVs overtake petrol vehicles on BVRLA’s leasing fleet for first time
Battery electric vehicles (BEVs) have become the most popular type of vehicles on the BVRLA’s leasing fleet, overtaking petrol vehicles. BEVs make up 32% of the BVRLA’s new orders.
Nearly 50% of authorities in England not prepared for EV transition
Around half of the local authorities in England are not prepared for the transition towards EVs, research by Geotab has found, despite the UK government’s decision to ban the sale of petrol and diesel cars by 2030.
Quotes
… for broader adoption of EVs, we need clarity on how the Government will tax electrified driving sooner rather than later. The 2030 ban on new vehicles with fossil fuel engines is fast approaching and drivers want to know what they are signing up for before committing to an EV.
Julian Rance, managing director at Paragon Motor Finance, discusses recent proposals to tax electric vehicle drivers per mile, see We need clarity on EV tax
British Ports Association chief executive Richard Ballantyne, following UK Chancellor Rishi Sunak’s announcement that the Freeports selection process will see the first sites in England set up by the end of 2021:
“This is a welcome development and by being more inclusive in terms of the number of freeports there might be, the government can now explore how to better deliver on its levelling up agenda without picking regions over each other. Coastal communities are often in areas of high deprivation and have also experienced challenges resulting from the coronavirus pandemic and lockdown so this potentially transformative policy will be welcomed across a range of suitable locations.”
If we are to achieve mainstream adoption of EVs in this country – and hit the Government’s decarbonisation targets – we need to redirect more attention to the development of the used EV market.
Mike Todd, the chief executive of Volkswagen Financial Services UK, considers the potential for used EVs to unlock mainstream adoption of green travel, see Unlocking the used EV market requires financing