The National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle dealers in the UK, has reacted to the Autumn Budget and Spending Review 2022, details of which were outlined in Parliament earlier today (23/9/22). Sue Robinson, NFDA chief executive, commented on the announcements made today by the Chancellor regarding National Insurance contributions, Corporation Tax, the Energy Bill Relief Scheme, business rates, and infrastructure spending.
The National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, has conducted the Dealer Attitude Survey twice a year since 1989. Commenting on the results of the NFDA Dealer Attitude Survey Summer 2022/2023 published on Monday 12 September 2022, Sue Robinson, Chief Executive of the NFDA, said: “Despite the unprecedented challenges facing the automotive retail industry, it is optimistic to see our survey has revealed only marginal differences in manufacturer ratings. Franchised dealers show high levels of satisfaction in key business areas, particularly in used car margins and performance measures.”
The National Franchised Dealers Association has written to the Chancellor of the Exchequer, Rt Hon Nadhim Zahawi MP, urging support to mitigate the impact on UK automotive businesses of spiralling energy costs. Bills for auto dealers are expected to have risen 250 per cent by October. 94 per cent of the association’s members said the energy crisis will have a significant and detrimental impact on their business.
The Q2 figures for used car sales in the UK shows a substantial fall from the figure for 2021, according to the Society of Motor Manufacturers and traders. “The decline reflects the strength of the figures in 2021, the busiest quarter since records began. Franchised dealers continue to see strong demand in the used car segment driven by a combination of consumer demand and a lack of supply of new vehicles”, said Sue Robinson, Chief Executive of the National Franchised Dealers Association.
The National Franchised Dealers Association (NFDA) has responded to the Mayor of London’s consultation, expressing concern around his proposed plans to extend the Ultra-Low Emissions Zone (ULEZ) in August 2023.
New UK car registrations fell -20.6 per cent to 124,394 units in the second weakest May since 1992, after the 2020 pandemic-hit market, as supply shortages continued to hamper new purchases and the fulfilment of existing orders, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). The decline, compared with the first full month of reopened showrooms in May last year, demonstrates the impact of continued global supply chain disruptions, with the market -32.3 per cent below the 2019 pre-pandemic level despite strong order books.
“As new car sales continue to be impacted by the ongoing supply constraints, it is encouraging to see that consumer appetite for second-hand vehicles remained robust in the first quarter of the year”, said Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), commenting on the latest SMMT’s used car figures. The UK’s used car market rose 5.1 per cent in the first quarter of 2022 with 1,774,351 transactions. There were 86,596 more cars changing hands compared to the same period in 2021. Despite this increase, used car transactions remain -12.2 per cent below pre-pandemic levels.
The National Franchised Dealers Association (NFDA) Government-backed Electric Vehicle Approved (EVA) accreditation scheme was developed in 2019 to encourage retailers to enhance their expertise in the electric vehicle sector and support consumer confidence as the market moves towards EVs. The EVA scheme is endorsed and subsidised by the Government’s Office for Zero Emission Vehicles (OZEV) and is independently audited by Energy Saving Trust. There are now more than 300 EVA accredited sites spread across the UK with “many more dealers in the pipeline…”
The UK automotive sector recorded a positive start to 2022 as 115,087 new cars were registered, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). Registrations were up by more than a quarter (27.5 per cent) on January 2021, when lockdown restrictions kept car showrooms shut.
The National Franchised Dealers Association argues that there is cause for optimism in the new car sector based on strong consumer demand, despite a disappointing 1 per cent increase in new car registrations in 2021. Chief executive Sue Robinson said: “A poll conducted by NFDA revealed that 78.6 per cent of franchised vehicle dealers are optimistic about the level of demand in the year ahead as consumer confidence improves while we move through the pandemic and the electrification of the UK car parc continues apace.
The Government has announced a number of changes to the Plug-in Car Grant (PICG), the Plug-in Van Grant (PIVG) and the Plug in Motorcycle Grant (PIMG) rates and eligibility criteria. The new terms apply from 07:00 on Wednesday 15 December 2021. The Government has temporarily suspended the grant portal as we transition to the new rates.
NFDA Northern Ireland has responded to Northern Ireland’s Department for Infrastructure’s consultation on proposals to carry out MOT tests every two years. Sue Robinson, NFDA NI chief executive said that moving to biennial testing “is not the correct solution to the issues currently facing the NI Testing Scheme.” She said that the solution to current capacity issues should not come “at the expense of road safety.” The proposals were put forward earlier this year with the region’s MOT testing capacity struggling to keep pace with demand.
July’s new car registrations fell by -29.5 per cent to 123,296 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). The decline was artificially heightened by comparison with the same month last year, when registrations rose dramatically as showrooms enjoyed a full month’s operation following the first 2020 lockdown.
The buoyancy of the British van market post-lockdown is demonstrated by the swift rise in new van registrations in 2021. While certain goods and service industries have supported business continuity for van fleets during the pandemic – such as home delivery and mobile vehicle servicing – the rise in new van purchases demonstrates both confidence in the market and demand for newer, more efficient van technologies. This is good news for UK van tyre suppliers, with original equipment sales supported well in the short-term, and continuity of demand for the latest tyre models to suit new van technologies in the replacement stream, notably including electric vans.
Commenting on the SMMT’s figures for LCV registrations in May, Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA) said: “It is extremely positive to see that light commercial vehicle registrations continued their upward trend with record sales in May, as increased confidence in the sector continues post lockdown.”