Auto Retail Agenda: 13 May 2024
12 May 2024
- COX ‘CAUTIOUSLY OPTIMISTIC’ ABOUT USED CARS IN 2024
- UK URGED TO AVOID US 100% TARIFFS ON CHINESE CARS
- FOS HAS 20k MOTOR FINANCE COMPLAINTS
- AUTO RETAIL LIVE BUSINESS BAROMETER
- CHINA RETAILERS DITCH FOREIGN ICE BRANDS FOR LOCAL EVs
- NISSAN ASKS US RETAILERS TO FUND SALES SPUR
- STOCKWATCH
- COMING UP: Vertu full year
- PENSION SAVERS RUSH TO USE TAX BREAKS
- AUTHORISED PUSH PAYMENT FRAUD WARNING
Cox ‘cautiously optimistic’ about used cars in 2024
Following fears the new ICE market may slow in the second half of 2024, due to potential sales restrictions from brands eager to meet ZEV Mandate targets, there are fresh hopes used cars could take up some of the slack for retailers.
Although Cox Automotive is maintaining its baseline forecast of 7.4m used cars sales in 2024, it is “cautiously optimistic” they could reach up to 7.7m by the end of the year.
The potential for the new car sales bounce to extend into the used car arena is behind this optimism, although Insight director Philip Nothard still believes 7.4m is the most likely outcome.
The latest Cox Automotive used car forecast will be published this morning (Monday 13 May).
* This topic will be discussed in the next Auto Retail Live Business Booster on 22 May. There are more details below and you can sign up here: https://tinyurl.com/yz28rj8f
UK urged to avoid US 100% tariff on Chinese cars
The Biden administration plans to raise tariffs on Chinese EV imports from 25% to 100%. The move is expected to be announced on Tuesday. The tariffs would build on the 25% tariff initiated by former president Donald Trump.
In the UK, back in 2019, 1.7% of UK EVs came from China. By 2022, this grew to 31.8%; figures for 2023 are still being finalised but will be higher still.
This is leading some to say the UK should follow suit, but experts are urging caution – not least due to the role battery giant Envision, which is spearheading Nissan’s expanded battery plant in Sunderland, may have in building JLR’s battery plant in Somerset. Lotus and LEVC are also Chinese-owned.
Consumers should be remembered too. Chinese EVs are selling so well because they are cheap. That’s why MG is on track to overtake Tesla in the UK this year for EV sales.
“Slapping tariffs on Chinese imports would simply put EVs financially out of reach of many Brits and dash our environmental targets”.
FOS has 20k motor finance complaints
The Financial Ombudsman Service has revealed it has around 20,000 open complaints referring to motor finance commission. In March, three court cases were granted permission to appeal. The update builds on the FCA’s review of historical motor finance commission agreements; more information will be provided by 24 September 2024.
Auto Retail Live Business Booster
Devonshire Motors’ Nathan Tomlinson, Hatfields’ Craig Petty and Real World Analytics’ John Hogan will discuss the state of the market on 22 May in the Auto Retail Live Business Booster webinar.
Topics will include what to do about subdued retail demand, how to handle pre-reg and overage stock, what can be done about rising business costs and how to work with OEMs on EV targets.
The session will be led by Auto Retail Live chair Mike Jones and the expert panel will also be available live to answer your questions.
* Sign up here: https://tinyurl.com/yz28rj8f
WORLD NEWS
China retailers ditch foreign ICE brands for local EVs
Chinese auto retailers are ditching foreign brands slow to respond to the EV transition for homegrown EV makers “that have been gobbling up market share at a blistering pace”. One retailer said profitability of brands such as Infiniti is declining annually, and some ICE brands are now loss-making.
Startup EV brands have also discovered direct-to-consumer sales burn cash too quicky, and the new trend is to work with retailers to expand their sales channels. “They have to rely on these partners to ensure they’re able to engage properly with consumers,” said Daniel Koll, an expert at consultancy Intralink.
Nissan asks US retailers to fund sales spur
Nissan America, which has nearly 100 days’ supply, is allowing retailers to advertise vehicles at up to 10% below invoice. However, some retailers are criticising the brand for requiring them to fund the sales spur, rather than Nissan boosting incentives and marketing.
STOCKWATCH
Closing prices on 10 May 2024 and weekly change
Auto Trader Group 748.2p (+25.2p / +3.4%)
Caffyns 500.0p (-25.0p / -4.8%)
Halfords 151.6p (+2.2p / +1.4%)
Inchcape 788.0p (+25.0p / +3.2%)
Motorpoint 145.0p (+2.0p / +1.3%)
Pinewood 331.0p (+7.0p / +2.1%)
Vertu 75.3p (+3.4p / +4.6%)
COMING UP
Tuesday, UK unemployment
Wednesday, Vertu full year results
Wednesday, Radius Law Annual Conference
22 May, Auto Retail Live Business Booster
MONEY MATTERS
Pension savers rush to use tax breaks
Pension savers are rushing to use tax breaks in case they are scrapped by a Labour government. In last year’s budget, chancellor Jeremy Hunt scrapped the lifetime allowance of £1.073m and increased the annual pension allowance from £40k to £60k. The Labour party voted against the increases and said it would reinstate the lifetime allowance.
Authorised Push Payment fraud warning
New rules come into force later this year that will force banks to refund all scam victims. Those targeted by ‘Authorised Push Payment’ (APP) fraud will almost always be able to get their money back – but experts have warned the new rules could backfire as fraudsters could pretend to be victims in order to claim reimbursements.
Tags:
Why Subscribe?
As an auto retail executive you need insightful and unique industry intelligence to boost your business potential. Here’s a taste of what Auto Retail Network has to offer:
- Get informed and boost your business potential
- More than 1,200 fellow executives have joined us since launch
- Independent, carefully crafted, unique content relevant to you and your business
- Develop a greater awareness of market trends and opportunities
- Access to a wide range of materials whenever, wherever and however you want it
- Significant discounts on ARN events, reports and other publications
