Despite the difficulties that the UK, and indeed many other global car markets, have suffered since the 2020, the key bright spot remains the hybrid and electric sector. Stimulated by a combination of new model launches, falling new car prices and the impending ban on the sale of new IC (Internal Combustion) vehicles in the UK from 2030, the sector is seeing spectacular growth.
The review undertaken by Chris at the beginning of 2023 forecasts steady expansion in sales for both hybrid and electric segments of this market. New car volumes are set to exceed 1.5 million units by 2027 with an ever growing profile for B-EV over full/mild hybrid and plug-in hybrid variants.
Yet the UK automotive sector cannot escape issues such as the cost of living crisis. With many B-EVs still coming with a significant price premium, the sector will continue to be dominated by buyers in higher income categories. Such high prices, in particular, are likely to further change the auto retail landscape with leasing and PCP models expected to boom as many buyers look to forgo the major financial outlay of outright purchase.