Robin's Diary: 4/7/24

Don’t blame the dealers or manufacturers…

As we enter the second half of the year, the motor industry has turned its focus to achieving legislative targets rather than sales targets. This will in turn have a major effect on new car sales, prices and availability.

The reason is purely political, as manufacturers must register 22% of their total registrations as EVs – if not, they will be fined £15,000 for each non-EV over 78% of their total, regardless of their model range. So, they have two choices, sell EVs at a loss in many cases, to people who do not suit electric cars, or sell less petrol, hybrid, and diesel cars. This is why we will see many models removed from ranges, and why registrations in the last few months of the year might be pushed into 2025.

What does this mean for you the car buyer? Basically, any petrol or hybrid car will cost the manufacturer up to £15,000 to sell, so they won’t be trying hard to sell them. They might not have any until next year, and, any that are available, will only become more expensive – So, if you want a petrol car, I suggest you get one quickly, as the target goes up to 28% next year, and, unless things change, it will only get worse, especially if the government impose tariffs on cheap electric cars because that will push up the cost of those as well as petrol cars.

“Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.” Groucho Marx