SMTA Monthly Bulletin February 2024

Tuesday 12th March, Huntingtower Hotel, Crieff Road, Perth PH1 3JT

Tuesday 19th March

GTG, 1330 South Street, Glasgow G14 0BJ

Wednesday 13th March

Kingsmills Hotel, Inverness IV2 3LP

Wednesday 20th March

GTG, 1a Queen Anne Drive, Newbridge EH28 8PL

Thursday 14th March

Thainstone Centre, Inverurie

AB51 5XZ

Thursday 21st March

Cross Keys Hotel, The Square, Kelso TD5 7HL

2024 SPRING BUDGET

URGENT FOCUS IS NEEDED TO SUPPORT THE AUTOMOTIVE BUSINESSES THAT ARE CRITICAL TO THE ROAD TO ZERO

The Institute of the Motor Industry urges the Chancellor to reinstate super-deduction to support the business investment needed in equipment and training for a sustainable EV aftermarket

There are numerous steps being suggested across the automotive sector for consideration by the Chancellor of the Exchequer for the Spring Budget (6th March) to support and stimulate adoption of electric vehicles. The Institute of the Motor Industry welcomes any changes that can be made to build consumer confidence in the new drivetrain.

However, the professional body for those who work in the sector is concerned that simply looking for financial incentives to encourage new EV sales misses the significance of ensuring the aftermarket is effectively trained and equipped to support zero emissions motoring. It is therefore urging the Chancellor to reinstate super-deduction – originally introduced by Rishi Sunak in 2021 - as

part of the Spring Budget.

“Although the government made the decision last September to move the deadline back to 2035 for the ban on the sale of new petrol and diesel vehicles, the passing of the ZEV mandate into law this January means that many businesses that operate in the automotive aftermarket still need to be EV ready if they want to be part of the road to zero”, explained Steve Nash, CEO of the IMI. “Yet they are faced with significant costs for equipment and training and little immediate incentive in the form of customer demand.

“If the government is genuinely committed to reducing carbon emissions it not only needs to stimulate the market; it also needs to ensure the aftermarket sector is adequately equipped and trained to support EV drivers. We, therefore, hope that the Treasury is giving serious consideration to reinstating the super- deduction (130% first-year capital allowance for qualifying plant and machinery assets; and 50% first-year allowance for qualifying special rate assets) as well as reducing rates to help motor businesses invest in equipment and skills for new

technologies. The Full Expensing 100% first-year capital allowance for qualifying plant and machinery assets introduced in March 2023 really doesn’t go far enough.”

The IMI also wants the Chancellor to ensure focus remains on rebuilding the UK economy with a skilled workforce. It believes this can be achieved through increased funding for apprenticeships; support for SMEs to offer apprenticeships; FE Lecturer Funding; Adult Education Support and better financial support for apprentices, including free bus travel and a review of how apprentices who are also caregivers can benefit from Universal Credit.

“Clearly the Chancellor will be focused on supporting every individual and business that has been hit by the cost of living crisis over the last 12-18 months”, concluded Steve Nash. “We hope that this strategy doesn’t miss the significance of how important the automotive sector is to the UK’s economic and social infrastructure as a whole.”

Article courtesy of Identity Management Institute (IMI)

ONE IN FOUR DRIVERS TO SWITCH TO HYBRID AS THEIR NEXT VEHICLE PURCHASE

More than half of drivers (51%) will look to purchase a vehicle this year, of which one in four (28%) will opt for a hybrid, according to new research from Close Brothers Motor Finance.

Just under a third (31%) of drivers will choose a petrol vhicle, and one in ten (11%) will pick a diesel.

Following the Government delaying the 2030 new petrol and diesel car ban to 2035, just 12% expect to buy an electric vehicle (EV) – slightly down from last year – 14%. Although almost half (47%) say the delay will give them more time to purchase an alternative fuel vehicle ( AFV).

Lisa Watson, director of sales at Close Brothers Motor Finance, said: “There’s certainly a desire to switch to electric, but with the current economic climate and financial pressures faced by many UK households, it’s likely that costs are prohibiting more widespread EV adoption in the UK.

“Coupled with concerns about infrastructure many are opting for hybrid – a segue from leaping from fully petrol to fully electric. “Although the UK recently hit a milestone of the one-millionth EV being registered, the statistics remain skewed by fleet sales, and demand is not where it needs to be if the 2035 ban is to be realistic. More will

FEMALES IN FOCUS

need to be done to encourage drivers to make the switch.

“And it’s not just drivers who remain cautious, currently just one in five (21%) dealers believe the ban will actually go ahead.”

Veterans. Their unparalleled commitment and wealth of experience have played a pivotal role in shaping Bridgend into the thriving business it is today,” it said.

FRIDAY 20TH SEPTEMBER 2024

GRAND CENTRAL HOTEL,

We are delighted to hold our Females in Focus lunch this year at Grand Central Hotel in Glasgow on Friday 20 September 2024.

This lunch is always such a highlight of our event calendar and we are proud to be able to run an event that highlights the many career paths available in the motor trade to females. The event will again have an inspiring panel of business women sharing their career stories and insights!

Full details will be available soon, in the meantime any queries can be emailed to events@smta.co.uk

Sponsorship items are available please email wendy.hennessy@smta.co.uk for information.

USED CAR PRICES INCREASE FOR THE FIRST TIME IN NEARLY A YEAR

The increase is the fourth largest upward movement in February since Cap Live was launched in 2012.

The average movement over the last 11 years is a slight increase of 0.2%.

Values at the one-year age point increased by a minimal 0.2%, while values at the five-year point went up by 0.6%. A minor weakness can be seen for older cars, with a 0.6% decline, not helped by some high mileage cars proving relatively undesirable.

Duncan has strong ties to the area,

having been brought up in Dundee, which is about 20 miles from Perth.

He added: ‘Lexus has never been represented in Dundee and speaking as a Dundonian, I am delighted the luxury brand is being launched in my home town.

USED EV VOLUMES CONTINUE TO RISE

BEV volumes continue to rise, and Cap HPI has received nearly double the amount of sold data compared to this period last year.

The first two months of this year have seen almost a quarter of last year's total sold volume already.

More BEVs are entering the used wholesale market than ever; they are selling, and values are holding up better than last year, primarily due to last year’s severe realignment.

However, average values are still dropping, while petrol and diesel cars are increasing by 1.2% and 0.5% respectively.

OEMS MUST "GET DOWN TO IT" TO MEET 2035 ZEV DEMANDS, SAYS TRADE BODY

Luca de Meo, president of the European Automobile Manufacturers Association (ACEA), has said OEMs must "get down to it" and ensure car buyers are into zero emission vehicles by 3025 rather than quibble about the deadline.

He said Europe's carmakers will not challenge the European Union's decision to effectively ban fossil-fuel vehicles as of 2035 through zero emissions targets.

At a press conference at the Geneva car show, de Meo said ACEA will not push back against the 2035 demands set by the EU, reports Reuters, even though many markets have found slowing demand for electric cars, particularly as private buyers are deterred by the higher costs of such vehicles.

The industry executive, who also heads Renault Group, added. "Now we must get down to it."

A full fossil-fuel car ban in 2035 "is potentially feasible, but the right conditions must be put in place," he added.

In the UK, the SMMT continues to repeatedly lobby for state support, such as reductions in VAT, to make EVs more attractive to new car buyers.

MOT FORECAST VOLUMES MARCH 2024

TRADE SNIPPETS

Fiat prepares to reveal first 'global' car in three year launch plan

Article courtesy of AM Online

Lloyds Banking sets aside £450m for FCA commission probe

Article courtesy of Motortrader

Suzuki boss expecting major market shift in 2024 as he warns dealers not to get too ‘cosy’

Article courtesy of CarDealer Magazine

Wheeler Dealer's Mike Brewer says hackers have control of Facebook page

Article courtesy of CarDealer Magazine

Court sends warning to industry on vehicle modifications

Article courtesy of AM Online

John Clark acquires Peter Vardy ex-CARZ site in Dundee

Article courtesy of Motortrader

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