Government EV U-turn – what you need to know

The Prime Minister’s recent U-turn on the ban on the sale of new fuel-powered cars has yet to have an impact on consumer demand.

The date for the ban on new fuel-powered cars was originally set to be in 2030, but Rishi Sunak announced on Wednesday 20^th September that he will be delaying the ban on petrol and diesel cars to 2035.

Consumer impact

The news was met with a variety of reactions from both retailers and consumers. While consumer demand has seemed unaffected, the online marketplace has suggested many consumers are now planning to delay their switch to electric in response.

In the used electric car market, demand remains strong, increasing approximately 87% year-on-year in September.

Research by Auto Trader found 39% of buyers said they will buy an electric vehicle by 2035, but 37% of car buyers are now saying they’re unlikely to ever buy an EV following the news.

Retailer reactions

According to Auto Trader, retailers are mostly in agreement with the push back in deadline, with 75 per cent in favour of the delay.

Almost a fifth of franchise retailers disagree with the delay, suggesting their readiness to switch to electric vehicles, whereas independent retailers were more in favour of the change, with 85 per cent of them agreeing to the delay.

Commercial director of Auto Trader, Ian Plummer, said: “More electric vehicles will be entering both the new and used retail market in the coming years, which will significantly shape the forecourts of both franchised and independent retailers.

“Some retailers may feel this is distant concern but with fuel prices on the rise and infrastructure set to improve, it does feel like only a matter of time before the doubters begin to reconsider.

“Regardless of what the politicians say, preparing to electrify your business isn’t something you can put off – start now.”

Going forward

Despite the U-turn, the EV market will continue to see growth over the next decade, and it’s estimated that almost all new car sales are set to be electric vehicles by 2030. However, the U-turn has led to more confusion among consumers, and retailers will be working to set the record straight and inform car buyers so they are well aware of the journey to electric.

Explore our electric vehicles in our Exeter, Plymouth, Taunton, and Truro stores here.