Dealers express concern over Government's EV deadline extension

More than four out of 10 dealers (44%) anticipate that used car buyers will hang on to their petrol and diesel cars following the UK government's decision to delay the new car electrification deadline to 2035.

Startline Motor Finance’s November Used Car Tracker report indicates that 29% of dealers believe this delay will hinder the development of the used electric vehicle (EV) market, while 19% predict a decline in consumer demand for EVs.

Moreover, the survey highlights that 24% of dealers foresee an increased preference for hybrid vehicles as an intermediate step toward full electrification. Additionally, 20% of respondents expect a further decrease in EV prices, building on recent reductions in the market.

Paul Burgess, CEO at Startline Motor Finance, expressed concern about the potential impact on the EV sector, stating, "Our research shows that almost half of dealers think that Rishi Sunak’s decision to push new car electrification back to 2035 will have a direct impact on the used market, reducing demand for EVs as consumers choose to take longer to make the switch away from petrol and diesel."

While some dealers foresee challenges for the EV market, 24% believe that the government's decision will have limited impact on the rate of used EV electrification. This group argues that manufacturers have already committed to the original 2030 date, and their plans for electrification are well underway.

"The main issue with the government’s 2035 move is that manufacturer plans to electrify over the course of the decade are already largely set in stone based on not just the UK’s previous 2030 deadline but also the EV mandate and a whole range of much bigger global production projections," explained Paul Burgess.

He also pointed out that the government's announcement might have minimal effect due to the rapid increase in the supply of EVs, coupled with a decline in the availability of petrol and diesel cars. Additionally, the possibility of a change in government policy, especially if a Labour government is elected, adds a layer of uncertainty to the situation.

The Startline Used Car Tracker, compiled monthly for Startline Motor Finance by APD Global Research, reflects the views of 303 consumers and 59 dealers, providing valuable insights into the dynamics of the automotive market.