10 October 2018

The precise details of the number of NEDC cars that retailers will have to sell in the coming year before the deadline at the end of August 2019 have been revealed. And the figures tell several interesting stories.

Some brands have been organised and cleared their stock of NEDC models, while others have held onto stock that might not otherwise be available. Other smaller brands, however, appear to have vast numbers of cars versus their 2017 sales figures.

Manufacturers were able to derogate up to 2,000 NEDC tested vehicles without any questions asked, or up to 10% of their 2017 sales figures if that was more than 2,000. A document seen by Auto Retail Network, and reproduced here, shows that some brands have maximised their allowances and have been granted permission to carry over thousands of NEDC-registered cars to sell in the next 11 months.

Of those who were restricted to 10% or lower of their 2017 annual sales figures, Mazda, Suzuki and Kia pushed the limit the most, with Mazda and Suzuki only a few cars off their maximum allowance.

None of these brands were concerned about the cars carried over, with Mazda saying it had been factored into the plan from the start as the Mazda 3 is not WLTP compliant. By derogating 3,000 Mazda 3s, the brand ensured it had stock left until the new model arrives in 2019, and these cars were always factored into dealer targets.

A spokesman for Kia said that the selling of the cars had already started before the September deadline, and a bumper August and September set of sales figures meant that only 2,400 of the brand’s 9,285 derogated cars remained.

Jayson Whittington, chief car editor of Glass’s Guide said that the stock levels will help some retailers, especially at a time when WLTP has forced delays onto the industry. “Having cars that are ready to be sold and subject to the old rates will be beneficial as lead times have gone up due to testing,” he said. “To have a car ready in a couple of weeks would be a unique thing at the moment.”

It is also interesting to note the organisation of some brands, with Volvo and Vauxhall having carried over only a small percentage of NEDC tested cars. At the time of the deadline, Vauxhall UK managing director Stephen Norman said: “The introduction of WLTP on 1 September is almost a non-event for our stakeholders: the same cars are ready to order and ready for delivery, and this is 100% of our portfolio.”

Smaller brands are likely to see more disruption in coming months, though, with the derogated figures from Subaru, Aston Martin and Rolls-Royce particularly surprising. A leading retail boss told Auto Retail Bulletin that they wouldn’t be surprised if the stock that had been derogated was not the desirable models that retailers might want, pointing out that there wouldn’t be the need to carry over cars that are in demand.

They also said that they thought it likely that those with big numbers of derogated units might end up having to offer deals to shift the vehicles as new, unregistered cars ahead of the next deadline on 31 August 2019.

* Author Tom Webster is editor of Auto Retail Profit

Tags: Derogation, emissions regulations, NEDC, VCA, WLTP