SMMT warns car sales could be hit by ‘double whammy’
The Society of Motor Manufacturers and Traders has warned that new and used car sales could be hit by ‘double whammy’ in the Autumn Budget.
It has said that ending the Employee Car Ownership Schemes (ECOS) and introducing a pay-per-mile tax on electric vehicles could severely impact the recovery in sales seen in the third quarter.
Its figures revealed that new car registrations rose 0.5% to 144,948 units in October, while more than two million used car transactions took place between July and September, with electric vehicles making up four per cent of that number.
But CEO Mike Hawes believes ongoing recovery could be dampened by what he has described as ‘the wrong policies at the wrong time’.
Double whammy
He said: “Progress is facing a double whammy with government plans to end Employee Car Ownership Schemes (ECOS) and reports of a pay-per-mile tax on EV motoring in the forthcoming Autumn Budget.
“These measures would stifle both demand and the supply of new cars, while cutting half a billion pounds annually from Treasury income. This is, evidently, a counterproductive approach just as government seeks to prioritise growth and manufacturers are charged with ramping up EV take-up.”
