Automotive News – Early October 2024
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Unprecedented EV discounting shores up September new car market.
• New car market up 1.0% to 275,239 units in key ‘74’ plate change month of September as heavy EV discounting shores up demand.
• Record 56,387 BEV registrations in September, driven by massive manufacturer discounting, pushes YTD market share to 17.8%, with 18.5% forecast by year end – still below the zero-emission vehicle mandate.
• SMMT and major vehicle manufacturers write to Chancellor calling for urgent consumer support as growth in private buyer demand for diesel outstrips EVs in September.
Demand for new vans rises in September but EV uptake falls again.
• New light commercial vehicle (LCV) registrations up 8.3% in best September for four years.
• Battery electric van (BEV) uptake falls -0.5%, down for the sixth time in 2024 with market unlikely to reach the UK’s ambitious and mandated 2024 zero emission vehicle targets.
• Sector calls for long-term provision of Plug-in Van Grant and mandated van-suitable chargepoint rollout – critical to operator confidence in zero emission fleet operations.
Aston Martin is cutting its predictions for 2024, blaming a disrupted supply chain and a continued macroeconomic weakness in China.
The luxury car manufacturer says it no longer expects to achieve positive free cash flow this year, with adjusted EBITDA now expected to be slightly below 2023.
It says it’s experiencing a growing number of late component arrivals due to disruption at several of its suppliers, resulting in a delay in operations and delivery.
Luxury carmaker Aston Martin’s share price sank more than 20% after it said profits will be lower than expected this year. The company, famed for its links to fictional superspy James Bond, has been hit by supply chain issues and falling sales in China.
The share price of Stellantis, the owner of brands such as Peugeot, Citroen, Fiat and Jeep, also plummeted on Monday after a profit warning.
Carmakers across Europe have been suffering lately, with disappointing sales and increased competition from abroad taking a heavy toll on earnings.
Aston Martin is a prestige brand which makes upmarket cars in relatively small quantities. Last year, it sold 6,620 vehicles, with about a fifth of those going to the Asia-Pacific region.
Big taxes will be imposed on imports of electric vehicles from China to the EU after the majority of member states backed the plans. The move to introduce tariffs aims to protect the European car industry from being undermined by what EU politicians believe are unfair Chinese-state subsidies on its own cars.
Charges of up to 45% are to be enforced on electric cars made in China for the next five years, but there have been concerns such a move could raise electric vehicle (EV) prices for buyers. The decision, which split EU member states such as France and Germany, risks sparking a trade war between Brussels and Beijing, which has condemned the tariffs as protectionist
Pure electric models accounted for 20.5% of all new car registrations in the UK last month, with the trend continuing to be buoyed by commercial fleets. The Society of Motor Manufacturers and Traders (SMMT) confirmed the milestone on Friday (4 October), highlighting that the proportion is a record.
The trade body expects pure electric vehicles (EVs) to account for 18.5% of all registrations in 2024.
Up to 500 UK manufacturing jobs are to be supported as bus operator Go Ahead announced a £500m investment to decarbonise its fleet – with Plymouth and Gloucestershire set to benefit.
Go Ahead said it will create a dedicated manufacturing line and partnership with Northern Ireland-based bus manufacturer Wrightbus.
The investment is set to fund the manufacturing of up to 1,200 new zero emission buses over the next three years.
Built for operator Go Ahead, this investment will accelerate the transition to greener buses across the country including in Plymouth, Gloucestershire, East Yorkshire, London and the Isle of Wight.