News analysis
In this issue Above: The Ford Puma was the UK’s best-selling car in the first quarter of 2024.
Reacting to the March sales figures, Novuna Vehicle Solutions managing director Jon Lawes said: “The new plate month inevitably sparks strong take-up of zero-emissions vehicles, yet the transition is in danger of stalling without addressing the fundamental barriers to EV adoption, particularly after a lacklustre Spring Budget.
“Achieving the [UK Government’s] ZEV mandate will prove increasingly difficult unless support measures for private buyers to make the switch are introduced, coupled with the sustained rollout of EV charging infrastructure which remains unfit for purpose.” Lex Autolease managing director Nick Williams said: “While market share fell in March, I still believe this will be a pivotal year for electric vehicle adoption. With the 2024 ZEV target and tough competition from Chinese rivals bearing down on carmakers, many are reimagining their operations and creating partnerships to cut manufacturing costs and launch more affordable models. “And we’re seeing appetite among private drivers grow at the same time. Our latest 'Future of Transport' report found that two-thirds of 17 to 35-year-olds are planning to make their next car electric, and that far fewer see costs as a barrier compared to their parents’ generation. “While there’s still strong demand from both industry and drivers for more action from government to speed up adoption, we expect to see significant market growth this year.”
David Borland, UK and Ireland automotive leader for accountancy firm EY, said the overall sales growth seen in March underscored the “continuing resilience” of the sector, despite “a variety of persistent headwinds”. He continued: “[These include] ongoing consumer confidence challenges, due in part to interest rates staying high for longer than many anticipated, and a complex and evolving regulatory environment in
relation to decarbonisation as well as finance and insurance products. “In response, OEMs have ramped up sales incentives and discounts offered to consumers to boost demand, and we are seeing clear signs of a return towards the ‘supply push’ model. However, how sustainable such incentives will be longer term remains to be seen.”
On EV sales, Borland noted that these remain substantially below the 22% target in the UK Government’s ZEV mandate, and said: “This is likely to be due, in part, to ongoing consumer hesitancy caused by the delay to the ICE sales ban, persistent concerns about charging infrastructure adequacy and more recent issues around BEV residual values and insurance premiums.”
The SMMT has also published registration figures for the first quarter of 2024. These show 10.4% year-on-year growth overall, with fleet registrations up by 28.9%, private registrations down by 9.2%, and business registrations down by 7.7%.
The fuel mix figures show EV registrations up by 10.6%, taking 15.5% of the market (an increase of just 0.1%), plug-in hybrids up by 34% for a 7.8% market share, and hybrids up by 12.5% for a 13.6% share.
Petrol car registrations are up by 9.4% for a 56.3% market share, while diesels are down by 5.3%, accounting for 6.9% of the market.
The Ford Puma was the UK’s best- selling car over the first three months of the year, with 15,054 registrations. The Nissan Qashqai was second with 14,555, and the Kia Sportage third with 13,632. The fourth best seller was the Nissan Juke, with 11,206 (making an all-SUV top four), and the top ten was completed by the Audi A3(10,493 registrations), BMW 1 Series (10,406), Volkswagen Golf (10,290), Mini hatch (10,049), MG HS (10,028), and Volkswagen T-Roc (8,934).
Considering how forward-looking the fleet industry can be, I was surprised to read Jack Carfrae’s lead feature exposing the reliance on spreadsheets to run a fleet, rather than spending out on fleet-specific software. Going a little deeper into this, it seems smaller SMEs are happier to use Excel, rather than sophisticated management systems that seem to be the preserve of bigger fleets. While cost does seem to be a key consideration, there also seems to be a lack of confidence in whether fleet-specific software will work for them and their drivers. The fact that the fleet market is 10-15 years behind accountancy software, is a shocking admission in my opinion. Another element of this, and it’s a topic we’ve talked about here before, is a lack of training and understanding regarding their legal responsibilities for their fleet, with spreadsheets not easily being able to prompt for items such as licence checks for drivers, or whether MoTs are up to date for vehicles. Jack has also had a look at the latest innovations in fleet management software for context. It’s a subject we seem to be coming back to again and again, check out Jack’s piece, which starts on P24. Following on from the launch of the 2024 Business
Car Awards last month, which will take place at the Hilton, London Bankside, on Thursday 19 September. I’m pleased to announce that on top of the support already confirmed, Fleet Operations will again be the lead sponsor. Time is moving fast, so if you’ve not entered yet, why not? It is going to be a fabulous night celebrating great products, companies, and individuals – get involved!
I hope you enjoy this issue.
Martyn Collins Business Car Editor
www.businesscar.co.uk | April 2024 | 5
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