Industry news

Chancellor fails to mention electrification of the UK motor industry

17 March | Spring Budget

Chancellor Jeremy Hunt missed an opportunity in the Spring Budget to address a slow-burning issue for the sector: electrification of the motor industry.

Yes, there are huge expectations for the sector to go green by 2030, but doing so will require a reliable and widely available charging network. So, what’s the plan for rolling this out? There was nothing in this Budget to address this.

Managing director of FleetCheck, Peter Golding found it “disappointing” that electrification was not mentioned. He said: “Industry bodies have been calling for this and it really does feel as though the government is letting our car and van manufacturing capacity drift away to other countries that are being more proactive.”

David Bushnell, director of consultancy and strategy, Fleet Operations, said that “the lack of any significant new measures to incentivise further electric vehicle (EV) adoption and infrastructure rollout signals a missed opportunity.

Credit: Sean Aidan Calderbank / Shutterstock.com

1 March | EVs

EV lessor welcomes ‘baby Tesla’

Experts from LeaseElectricCar.co.uk have welcomed the news of a new entry-level Tesla hatchback to the market.

Tesla’s smallest and most affordable car so far could convince thousands of motorists to join the electric vehicle revolution, the leasing company said.

Dubbed the ‘baby Tesla’, the planned hatchback will be a rival for Volkswagen’s ID3 as well as cheaper EVs from Korean and Chinese manufacturers.

It is expected to go on sale in the UK for around £20,000, making it the cheapest Tesla so far and is predicted to offer a range of 250 miles on a single charge, which measures up well against rivals of a similar size.

Tim Alcock from LeaseElectricCar.co.uk said: “This new baby Tesla will really shake up the market. The launch of a new, compact entry-level Tesla is great news for electric car buyers. For many drivers Tesla is the brand they aspire to own but costs of entry have been high until now.”

27 February | Vehicle Production

EV output charges ahead in January

The UK’s ongoing shift to electrified car production was evident in January 2023, with combined battery electric, plug-in hybrid and hybrid electric vehicle volumes up 49.9% to 28,329 units, according to figures released by The Society of Motor Manufacturers and Traders (SMMT).

These vehicles represented more than four in every 10 (41.3%) cars made in January, a near-record monthly share, and further evidence of the UK’s capability in making these important models, most of which (77.0%) are exported to meet global demand (December BEV, PHEV and HEV production share 47.2%).

Production for the UK rose 5.6% to 12,196 units, while exports declined by -1.5%, largely due to the suspension of shipments to Russia.

In total, more than eight in 10 of all those produced, were destined for overseas markets, with over half of these (56.6%) for the EU, followed by the US (9.3%), China (8.8%), Japan (4.4%) and Australia (3.3%).

27 February | Vehicle Production

Commercial vehicle output up in January

UK commercial vehicle (CV) production grew 35.6% in January 2023, with 9,299 vans, trucks, taxis, buses and coaches leaving factory lines, according to the Society of Motor Manufacturers and Traders (SMMT). 

January’s strong output marks the best start to a year since 2012 and reflects the determination of manufacturers to get back on track following the pandemic and latent supply chain challenges.

Growth in the month was driven primarily by exports, with 5,326 units produced for international markets.

More than half of all UK-built CVs (57.3%) went abroad, with the EU, which remains the UK’s biggest overseas customer, responsible for 91.8% of these exports. The domestic market also saw growth with output up 36.2%. Volumes are expected to increase significantly throughout the year, notably as new models begin production and a major new electric van manufacturing plant comes on stream.

24 February | Vehicle Values

LCV values rise early in 2023

Light commercial vehicle (LCV) values in the UK averaged £9,938 in January 2023, as demand from online buyers saw values rise to their highest point since last July, the BCA reported.

Values rose by £486 (5.1%) compared to December and performance against price guides improved to 102.7%, a rise of 3.9 percentage points, month on month. Sold volumes rose rapidly and were well ahead, month on month.

LCV buyer customers reported improved demand at the retail level as January progressed, despite the continuing economic pressures affecting the small business sector and reports that business confidence has fallen amongst SMEs, the BCA reported.

Looking in detail at the weekly reports shows that average values rose quickly in the New Year, peaking at over £10,600 later in January, well ahead of where they have reached in recent weeks, the BCA reported.

23 February | Insurance

Longer used car warranties saw spike in popularity in 2022

Longer used car warranties became more popular in 2022, the RAC Dealer Network reported, in reaction to both the cost-of-living crisis and the ageing vehicle parc.

The number of policies written covering six, 12, 24 and 36-month periods all increased with only the shortest available cover – for three months – seeing reduced sales. Overall, the company’s average warranty term rose from 9.9 months to 11.1 months.

Sean Kent, European director of automotive at Assurant, which partners with the RAC in the aftersales market, said: “Longer warranty sales are being prompted by two sources. Firstly, dealers are increasing the standard cover they sell with their used cars. Secondly, more customers are choosing to lengthen their warranty at additional cost. This is a result of both tightening personal finances and concerns about the effects of unexpected motoring bills."

22 February | Mergers & Acquisitions

‘Global autotech sector saw 119 M&A deals in 2022’

The global automotive technology and mobility sectors saw 119 M&A deals in 2022, up 17% from 2021, according to Hampleton Partners, a financial advisory firm for technology companies.

The rapid adoption in some markets of electric vehicles (EVs) has helped drive this record deal number, the company said.

Michel Annink, director of Hampleton Partners, said: “2022 global EV sales grew by 55% year-on-year, reaching 10.5m, while global shipments of petrol and diesel-powered cars declined by 12% over that time. 

"The EV-charging market also continues to boom with global investments in this segment in 2022 equal that of the previous five years combined.”

Although China was initially slow to adopt EVs, aggressive government policies and government incentives encouraged EV sales, achieving 29 per cent of new car sales in 2022 vs. 15 per cent in 2021.

In brief

FLA provided £148bn of new business in 2022

The Finance & Leasing Association (FLA) released figures that show its members across the asset finance, consumer finance and motor finance markets provided a record £148.3bn of new business in 2022, 12% higher than in 2021. Of this total, £33.8bn was provided to businesses for investment in machinery, equipment, and vehicles, including £22.5bn to SMEs.

Two-thirds of European battery production at risk

More than two-thirds (68%) of lithium-ion battery production planned for Europe is at risk of being delayed, scaled down or cancelled, according to a study by NGO Transport & Environment. Tesla and Northvolt in Germany and Italvolt in Italy stand to lose the most, as the companies weigh up investing in the US instead.

Fleet Alliance directors invest in order-to-handover platform

Two directors of Glasgow-based fleet management and leasing specialist Fleet Alliance, CEO Andy Bruce and COO Nigel McMinn, have invested an undisclosed sum in AutoBuzz, a customer handover communications platform. The two have taken a minority stake and non-executive advisory roles in AutoComms Solutions, owner of AutoBuzz.

KeyFleet rebrands to Greenarc Vehicles

Key Finance and Leasing Limited (KeyFleet), a UK supplier of company vehicles since 2007, has rebranded as Greenarc Vehicles. The name change follows KeyFleet’s acquisition in November, for an undisclosed amount, by Greenarc Energy, a group of businesses that supply fuel and green technologies UK-wide.

SUEZ UK partners with Tusker green salary sacrifice EVs

SUEZ, a provider of wastewater management, has introduced a green-focused salary sacrifice electric vehicle scheme from Tusker. Tusker’s ability to implement its schemes across multiple stakeholders in larger corporations was an inducement for SUEZ, which needed to ensure a smooth roll-out process for its 5,700-plus employees in the UK.

Gofor rebrands to drive home fleet credentials

Gofor Finance, an Edinburgh-based fleet management company, is now simply Gofor. The Scottish business is dropping ‘finance’ from its name to better reflect its provision of end-to-end fleet management service, the company said. The name change is part of an overall rebrand launched on 1 February.