Peter Vosper: 2024 new car market disappoints —is electric to blame?

The new car market fell by 2.6 per cent to close at just over 1.9 million registrations, but the figures are misleading.

The fleet market finished 11.8 per cent up, whereas the private market fell by 8.7 per cent. There are some obvious reasons for this, as manufacturers had to meet the 22 per cent electric content, and although there were financial benefits for business users and company car drivers to purchase an electric car, private drivers were expected to pay more for an electric car. The government consultation survey is now with us, and the government will examine all the replies before announcing their plans, probably in the spring budget.

Most dealers understand the barriers to certain drivers purchasing electric vehicles, but the government is likely to return to 2030 as the date when no internal combustion engine vehicles will be produced, but there will be exceptions, and plug-in hybrid vehicles with low emissions and improved range may continue until 2035. There have already been commitments to provide more charging stations with lower prices by dropping the VAT to the home rate of 5 per cent rather than the current 20 per cent and coming up with new ideas to make charging easier for those unable to have a wall box at their home. Range is improving, and for drivers with that home facility who make only occasional long journeys, the savings are substantial. With energy companies offering half-price overnight charging, there are drivers getting 200 miles for less than £5 even in this cold weather. More small cars will be introduced to the market this year, and prices will be closer to their petrol equivalent.

If you are still unsure, talk to your local dealer, and if it isn’t for you currently, expect some aggressive offers on petrol vehicles in the first quarter as manufacturers seek to reduce stocks and more Chinese brands arrive in Europe and the UK. The product is good quality, and the prices are generally cheaper. BYD, Omoda, and Jaecoo, and Ora are now available in Devon and Cornwall for private, business, and Motability drivers, and more brands will follow.

The used car market held up well in 2024, and forecasts are for a strong first quarter with more choice as well as the traditional January sales as dealers look to reduce stocks before the advent of higher NHI and minimum wage rates in April. Prices will rise, but the industry is aware the current economic situation is putting pressure on individuals and families as they have to manage increasing costs. Consider a service plan when purchasing any vehicle to avoid unexpected bills and be clear about what the warranties cover.

Finally, and I make no apologies for repeating my previous advice, take extra care in this extreme weather, which seems to be part of everyday life. Tyre tread, good brakes, and moderate speed can save lives, so allow more time for your journeys and take care.

A happy and healthy 2025 to you all.

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