NFDA 2025 Outlook Survey reveals dealership pessimism

The NFDA 2025 Outlook Survey has revealed the level of concern among dealerships, with 71% saying they are pessimistic about the 2025 trading environment.
The survey was conducted from 10-24 January, with responses coming from 46 dealership groups representing more than 165 sites.
It found that just 29% said they were ‘slightly optimistic’ about the year ahead, with more than seven in 10 pessimistic.
Running costs such as business rates and Employers’ National Insurance were ranked as the most concerning issue by 52% of respondents, with 31% ranking the ZEV Mandate as their second major worry and 34% saying charging infrastructure was their third main worry.
Meanwhile, the survey also found that many dealerships believe government support is vital to achieving ZEV Mandate targets, with grants and investment in charging infrastructure highlighted as the most critical factors in driving EV uptake.
NFDA 2025 Outlook Survey outcomes
Sue Robinson, chief executive of the NFDA, said:
“The transition to EVs is a generational shift for the industry and NFDA members are supportive of the decarbonisation of transport. With the government currently consulting on the phase-out date/ZEV mandate, dealers are calling for stronger support, including grants and investment in charging infrastructure, key issues which NFDA have repeatedly advocated on. The advantages of hybrids beyond 2030, along with these insights, will be highlighted in NFDA’s response to the consultation.
“Many dealers have expressed a pessimistic outlook with the overall trading environment in 2025 amid what is shaping up to be a challenging period for the industry. It is crucial that the government listens to the concerns of the sector, with several key issues at stake, including the increase in Employers’ National Insurance and the introduction of Vehicle Excise Duty for electric vehicles starting in April.
“The UK automotive sector is a vital sector in the UK and historically NFDA members have been very flexible and resilient to headwinds. This will continue as we help our members navigate the current operating environment and NFDA will maintain its lobbying efforts with the government on all these critical industry issues.”