Aftermarket November 2023

Clear strategy NFDA Chief Executive Sue Robinson said: “The announcement to delay the sale of new petrol and diesel vehicles from 2030 to 2035 is unsurprising given the Government's inertia around driving EV adoption in the UK. This change will likely create further uncertainty for the industry, however, it does align the UK automotive industry with the European Union, its largest international trading partner, and automotive dealers support this.” The NFDA undertook a survey of its dealer members in August, which found 59.7% believed that the UK should aim for a 2035 ICE ban, in line with the EU’s goals. Sue added: “Ultimately, the phasing out of ICE vehicles in the UK requires a clear strategy from the government to achieve it, it must be supported by forward thinking legislation and attractive initiatives to encourage motorists in making the shift. If the UK is to reach its 2050 netzero targets it needs to support the automotive industry, now more than ever.” Transition Simon King, Interim CEO at Autotech Group, noted: “During his speech, Prime Minister Rishi Sunak commented that, as a country, we need to strengthen the automotive industry. For several years Autotech Training has highlighted the need for greater education and training on Electric Vehicles. “EV training isn’t purely for the vehicle technicians who are responsible for repairing and maintaining them, but anyone who works or operates them, including the customer who drives their new EV off the forecourt, needs educating. Not only for their safety, but to understand how to drive them efficiently. Fleet companies, along with local authorities and the emergency services have invested heavily in electrification and will undoubtedly continue to build on this electric future while vehicle manufacturers, who have made firm commitments on when they will move to fully zeroemission cars, have said they will not deter from these planned dates. Therefore, despite the Government moving its climate commitments, the aftermarket cannot afford to become complacent.” Simon added: “The fact is there are more electric vehicles on the road today than there are people trained to work on them. It is imperative that we continue pushing forward with plans to upskill technicians and educate the wider public on EVs - this will not only lead to a stronger automotive sector but ensure that everyone has the right knowledge to make the transition safely and successfully.” Monumental challenge John Wilmot, CEO at car leasing comparison website LeaseLoco, observed: “The announcement won't have come as a huge surprise within the industry. The 2030 target was always ambitious, but it's become more evident in the past 12 months that it's simply not achievable with battery production unable to meet the vehicle unit production required to hit the deadline. "While this is going to be an unpopular decision amongst many groups, it’s better that the Government accepts 2030 is unrealistic and calls it six years early, rather than leaving it to the last minute and creating a full-blown panic. Consumers aren't stupid. The cost of electric cars is too high and the public charging infrastructure rollout is well behind schedule. This has inevitably had an impact on people choosing to switch to electric cars now, with demand showing signs of stalling in recent months. On our platform we have seen EV sales drop from 31% of all sales in Q1 2023, to 23% in Q3 2023.” He added: "The Government has given itself some breathing space, but it still has a monumental challenge on its hands to convince the British public to embrace green motoring." Hybrid approach Gordon Balmer, Executive Director of the Petrol Retailers’ Association (PRA), said: “The Prime Minister’s announcement reflects the reality of the delays in meeting infrastructure targets. The widespread adoption of electric vehicles in the UK can’t be realistically achieved without the corresponding charging network to accommodate it. Delays in infrastructure targets and questions around alternative methods of tax to compensate for the loss of fuel duty revenue and VAT have cast a shadow over the 2030 deadline. “Our members are committed to the decarbonisation of transport and are installing charging points to support an uptake of electric vehicles. We have called on the Government to provide support and direction concerning the critical issues of connecting to the grid and delivery of the required electricity to support the infrastructure. The PRA has consistently argued that the ban on new ICE vehicles by 2030 is a date without a plan and we hope the movement of the date to 2035 will allow us to continue to work with the Government on a sensible strategy to decarbonise transport.” “The PRA agrees with the Transport Select Committee’s findings in their document ‘Fuelling the future, motive power and connectivity’ which stated the Government have put all of their eggs in one basket with electric vehicles. Instead of gambling our hopes for successful decarbonisation away on unrealistic mandates, they should instead be focusing on more pragmatic options.” Elephant in the room LKQ Euro Car Parts CEO Andy Hamilton acknowledged the negative reaction on the announcement expressed in some parts of the industry, but acknowledged that there are wider concerns: “There’s palpable anger in the automotive industry at the Government’s decision to push back the ICE ban to 2035. If not for its diluting of key climate change policy, then for how it could damage investment appetite in the UK. “But, in the last year, the elephant in the room has been the question of whether the UK will be ready by 2030. Some of the biggest critics among vehicle manufacturers to yesterday’s news had also been loud voices on the uphill battle 2030 represented. There continues to be a massive shortfall in charging point infrastructure, with millions of people in towns and cities without a driveway for which to charge. The same goes for businesses with large fleet or logistics operations. EVs also remain expensive for most consumers too, despite prices moving in the right direction with a growing second-hand 10 AFTERMARKET NOVEMBER 2023 BIG ISSUE www.aftermarketonline.net Despite the Government moving its climate commitments, the aftermarket cannot afford to become complacent ”

RkJQdWJsaXNoZXIy MjQ0NzM=