Vertu Motors chief govt Robert Forrester has welcomed the federal government’s new £650 million Electrical Automotive Grant as a “vital and welcome” intervention to spice up non-public EV gross sales, however has warned that it might put strain on the used EV market.
“EV uptake by non-public patrons has stalled,” stated Forrester. “Just below 20% of EVs are actually offered to people. That imbalance is unsustainable. This grant helps redress that by making EVs extra financially viable.”
Forrester additionally praised the tiered construction of the grant, which presents £3,750 for probably the most sustainably produced automobiles and £1,500 for people who meet some environmental standards.
“It’s good coverage,” he stated. “A holistic transition should take into account all the carbon footprint – not simply what comes out of the tailpipe.”
Nevertheless, he cautioned that the inflow of subsidised new EVs might trigger instability within the second-hand market.
“Two in 5 used EVs offered final yr had been beneath £20,000. If residual values fall additional, confidence could possibly be undermined,” he stated, urging extra help similar to scrappage schemes, battery well being certification, and tax incentives for used EV patrons.
Regardless of issues, Forrester known as the initiative a “step in the correct path” that sends a transparent message of long-term authorities help for electrification.
“The duty now’s to verify we carry the used automobile market together with us.”
Which is one thing that organisations such because the British Automobile Rental and Leasing Affiliation and the Automobile Remarketing Affiliation are involved about. Thomas McLellan, head of coverage on the BVRLA, fears used automobile patrons – which outnumber new automobile retail patrons by eight to 1 – have been forgotten.
“If we need to open up the transition, making it honest, actually boosting shopper sentiment, then we’d like motion within the area the place most individuals truly purchase their automobiles and the place will probably be hardest to alter individuals’s minds,” McLellan stated.
“Whereas I’m positive all components of the market will welcome extra retail clients prepared to make the bounce to EVs, because the ZEV Mandate ramps up, it fully misses an important facet of this transition – the used EV market and its patrons.”
