With the 2030 ban on new petrol and diesel cars approaching for UK drivers, new research from Close Brothers Motor Finance reveals that a majority of independent dealerships (70%) are not currently selling electric vehicles.
While the Government prioritises encouraging the uptake of electric vehicles ahead of the planned ban on internal combustion engines, the research, which surveys car dealers, shines a light on their reluctance to stock electric vehicles due to demand concerns. Among the 70% who do not sell EVs, more than half (56%) have no plans to start within the next 12 months.
The hesitation around EVs extends far beyond the forecourt. Nearly six in ten dealers (58%) say they don’t plan to install EV charging points, 59% have no plans to update their workshops to service electric models.
When asked what would encourage them to make the switch, in their top three factors, dealers pointed to increased customer demand (80%), lower EV prices (39%), and more public charging infrastructure (37%). Followed by:
- 19% - A more consistent EV supply chain
- 19% - Help with the installation of charging on their forecourt
- 18% - More finance options for customers
- 9% - Funding to help dealers stock EVs
- 8% - A broader range of EV models
- 8% - Support with staff training
Despite the overall caution, some are laying early groundwork: 11% plan to train staff and create EV marketing materials, and 15% have already installed charging points on their forecourts.
John Cassidy, Managing Director at Close Brothers Motor Finance, commented: “Our research lays out the staggering challenge for the automotive industry as we approach the four-year-mark to the infamous proposed ban. While the percentage of dealerships offering EV options will undoubtedly increase as we get closer to the deadline, it’s nothing short of alarming that less than a third currently offer EVs to consumers.
“New registration data from the SMMT is, at least on the surface, positive for the provision of EV stock on the market, but most of these cars are going into fleets rather than to consumers for use on the road, which is what matters to dealers. While the latest Budget allotted funds to the continued development of the country’s charging infrastructure, as well as a continuation of the electric car grant, it also introduced a pay-per-mile tax for EVs which will only work to undo any momentum generated by the aforementioned incentives, and delay consumer decisions on making the switch to electric. Improving consumer demand for EVs ought to be much more of a priority for the Government.
“That close to a fifth of dealers would be encouraged to incorporate EVs into their forecourts if they had more finance options for customers shows that there are ways the industry can contribute to the solution. Close Brothers Motor Finance, for example, has a range of products which can ensure dealerships are well equipped to support customers looking to make the switch.”
