- If you order a gas car today from certain U.K. dealers, you will take delivery next year even though it could be delivered sooner.
- This rationing of ICE vehicle sales is what manufacturers and their affiliated dealer networks are doing to meet the U.K. government’s annual EV quota.
As the United Kingdom aims to transition to a future when it will only allow the sale of new cars if they are electric, it’s imposing a growing annual EV quota that manufacturers must meet. The country has a zero-emissions vehicle (ZEV) mandate, whose target for 2024 is for at least 22% of all new cars sold to be electric. However, with slumping buyer interest in EVs, the annual target will be missed, so dealers are artificially pushing back the delivery of combustion cars to hopefully get buyers to choose EVs, which they will take delivery of much sooner.
The Telegraph points to data provided by the Society for Motor Manufacturers and Traders (SMMT), which reduced its prediction that 19.8% of all new cars sold in the U.K. this year would be electric. The SMMT now expects only 18.5% of new cars bought in 2024 to be electric and even this prediction is boosted by companies adding EVs to their fleets, not private buyers going out and choosing an electric car.
Robert Forrester, the chief executive of Vertu Motors, claims that if you order a new car today at certain locations, it will arrive in February. The only reason it takes so long is because manufacturers don’t want to miss the required EV quota for 2024. This has apparently sent more people looking for a car on the second-hand market, which has seen a boost in demand.
Forrester went on to say that “in some franchises there’s a restriction on supply of petrol cars and hybrid cars, which is actually where the demand is. It’s almost as if we can’t supply the cars that people want, but we’ve got plenty of the cars that maybe they don’t want.” He explained that the manufacturers “are trying to avoid the fines. So they’re constraining the ability for us to supply petrol cars,” even though EVs are “not easily finding homes.”
The cooling of electric car demand has been felt in many markets around the world, and it is so noticeable that it has made manufacturers reiterate (and often postpone) their full transition to only making EVs. This is at odds with governments’ plans to phase out the sale of new combustion cars by the end of the decade or by 2035, and it could result in friction between them and the manufacturers and a lack of supply for the vehicles that people want to buy (electrified rather than fully electric cars).
In the U.K., the government plans to impose an increased EV quota every year until it reaches 80% in 2030. By 2035, current plans indicate that it will not allow the sale of anything other than electric vehicles. Other European nations have announced a very similar time frame for stopping sales of all non-electric vehicles, but they seem just as difficult to impose given buyers’ current preferences, which seem to be trending away from EVs and more toward hybrids and plug-in hybrids.
The carmakers aren’t pleased either and are backtracking on their EV plans. They’ve invested billions to develop and produce EVs in high volumes, assured by governing bodies that these vehicles would sell. However, they aren’t selling as well as they had hoped, especially now that many European governments are cutting back on tax credits for EVs and other benefits that encourage EV ownership. Help from the government made EVs (which are usually more expensive than equivalent ICE vehicles) cheaper and spurred demand artificially, but it seems that without it, the buyers will revert to driving combustion cars rather than having to pay more for an EV.
In recent months, the automotive industry in the United Kingdom has been facing a significant shift in consumer demand as dealers are reportedly ‘rationing’ gas cars and pushing electric vehicles (EVs) in order to meet government quotas. With the UK government setting a target to ban the sale of new petrol and diesel cars by 2030, dealers are under pressure to promote and sell more EVs to ensure compliance with these regulations.
This move comes in the wake of growing concerns over the environmental impact of gas-powered vehicles and the urgency to transition to cleaner and more sustainable modes of transportation. As a result, dealerships across the UK are reportedly limiting the availability of petrol and diesel cars, while prioritizing the promotion and sale of EVs to meet their government-mandated quotas.
This shift in focus towards EVs is also being driven by a combination of factors, including consumer demand for more eco-friendly vehicles, advancements in EV technology, and government incentives and subsidies for electric vehicle purchases. As a result, dealers are seeing a surge in interest and sales of EVs, with some reporting a significant increase in demand for electric cars compared to gas-powered vehicles.
Despite this positive momentum towards EVs, there are still challenges and barriers that need to be addressed in order to accelerate the transition to electric vehicles. These include concerns over the availability of charging infrastructure, the higher upfront cost of EVs compared to gas cars, and the need for government support and investment in EV technology and infrastructure.
Nevertheless, the automotive industry in the UK appears to be making strides towards a more sustainable and environmentally-friendly future by incentivizing the adoption of EVs and phasing out petrol and diesel cars. Dealerships are playing a crucial role in this transition by reshaping their sales strategies and emphasizing the benefits of electric vehicles to consumers.
In conclusion, the ‘rationing’ of gas cars and the push towards EVs by UK dealerships is a significant step towards achieving the government’s goal of phasing out petrol and diesel cars by 2030. With continued support and investment in EV technology and infrastructure, the UK is well-positioned to lead the way in the transition to a cleaner and more sustainable automotive industry.