Dealers predict EV decline

A new survey has revealed that just over a quarter of dealers expect EV sales to be better in 2024 than 2023.

According to a survey carried out by the National Franchised Dealers Association (NFDA), only 27% of the 50 respondents predict that EV would be better this year, with four per cent saying they’d be ‘much better’.

Meanwhile, only seven per cent of dealerships feel that the electric van market will fare ‘well’ in 2024 with 56% holding a neutral view.

The top three reasons dealers expected customers to turn away from EVs were range (82%), a lack of chargers (82%) and cost (80%).

Assessing overall outlook for the year, 42% said they were slightly optimistic and 44% were pessimistic.

Sue Robinson, chief executive of the NFDA, said: “With the Spring Budget set to be delivered on 6 March and a General Election likely to be called in the second half of the year, there are many pertinent issues flagged by the survey which NFDA will continue to raise with the government. NFDA has already highlighted various issues to the Chancellor ahead of the budget submission deadline on 24 January.

“Most dealerships do not appear to hold an overly optimistic view of the overall trading environment for 2024. As such, it is important that the government listens to the concerns of the industry during what has proven to be a tough period for the auto retail sector as it navigates its way through the cost-of-living crisis.

“Similarly, with dealerships investing heavily during the transition to electric, it is crucial that the government provides clarity and guidance surrounding EVs to help stimulate sales this year and avoid EVs flatlining.”