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VW Group UK ambitions, Chinese crosswinds, ZEV hope

VW Group UK ambitions, Chinese crosswinds, ZEV hope

Posted on October 12, 2024 By rehan.rafique No Comments on VW Group UK ambitions, Chinese crosswinds, ZEV hope

VW Group UK ambitions, Chinese crosswinds, ZEV hopeVolkswagen Group UK is pushing ahead with plans to remap its UK dealer networks with cuts to the number of dealer outlets and fewer investors.

To be fair, it’s not alone. These programmes are ongoing by carmakers and have long timelines, but the VW plan is ambitious, reflecting its big presence in the UK, taking a quarter of car sales, plus a big share of the van market.

The remap of the networks impacts the brands it has in the UK, including Audi, Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, SEAT, Cupra and Škoda.

Its aim is to make saving costs and gain synergies. Redrawing the map of the UK for so many brands and dealing with the legacy of the past is going to be a challenging time for many, while for a fewer number of investors it represents new opportunities.

This month we return to the topic of Chinese cars, plans for their UK networks. Going back a year it was all positive news all round with yet another Chinese maker coming to the UK.

Since then, there have been crosswinds. We already know what tariffs the EU has imposed on Chinse imports. Clarification from the Government on tariff hikes for Chinese-made EVs should come soon.

There is a big focus on the Budget next month with dealers and OEMs hoping that the government will do something to stimulate retail sales of EVs. The ZEV Mandate has come in for criticism for skewing the market.

Inevitably, the car side gets the headlines but don’t forget vans. Demand for vans at dealerships is looking solid with registrations up 2.7% in the year to July, the best year to date performance since 2019.

But there’s a downside. Since January, BEVs have accounted for 5.1% of all new vans. Given that manufacturers are mandated by government to ensure BEVs comprise at least 10% of new van sales in 2024, something needs to be done or as the saying goes, something must give.

With a change of political regime, trade are lobbying government to look at ways to stimulate demand for BEVs and improve the EV van charging infrastructure. Also, on the lobbying from are the NFDA and the BVRLA. All will be looking to the budget in late October  to see if they have made an impression on this new government.

 

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