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The UK new car market rose 1.0% in the key ‘74’ plate change month of September, to 275,239 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). In what is traditionally a bumper month for new car registrations, second only to March, the performance was the best since 2020, but still -19.8% off pre-Covid September 2019. Growth was driven by fleet purchases, up 3.7% to 149,095 units and representing 54.2% of the overall market. Private consumer demand fell, by -1.8% to 120,272 units, accounting for 43.7% of registrations, while the smaller business sector saw volumes fall -8.4% to 5,872 units.

Demand for the latest battery electric vehicles (BEV) hit a new record volume for any month in September, up 24.4% to 56,387 units, achieving a 20.5% share of the overall market, up from 16.6% a year ago. This was not enough, however, to shift market share significantly, which edged up from 17.2% in the first eight months, to 17.8% from January- September. It is expected to reach 18.5% by the end of the year.

Year-to-date private BEV demand remains down -6.3% – underlining the scale of the challenge involved in moving the mass market to meet the mandated targets that were conceived in very different economic, geopolitical and market conditions. Previous assumptions of a market delivering steady BEV growth, cheaper and plentiful raw materials, affordable energy and low interest rates have not come to fruition, with the upfront cost of BEV models remaining stubbornly high. Added to this is consumers’ lack of confidence in the UK’s charging provision – despite recent investment and growth – which still acts as a barrier to BEV take up.

Mike Hawes, SMMT Chief Executive, said, September’s record EV performance is good news, but look under the bonnet and there are serious concerns as the market is not growing quickly enough to meet mandated targets. Despite manufacturers spending billions on both product and market support – support that the industry cannot sustain indefinitely – market weakness is putting environmental ambitions at risk and jeopardising future investment. While we appreciate the pressures on the public purse, the Chancellor must use the forthcoming Budget to introduce bold measures on consumer support and infrastructure to get the transition back on track, and with it the economic growth and environmental benefits we all crave.

We will continue to report on industry news and trends in future issues.

Best wishes

Pay-per-mile car tax bands will cost drivers £190 if they do this mileage

It could cost motorists, road users and drivers a whopping £190 each, according to early projections, with the Labour Party government set to introduce the changes.

The changes come ahead of the ban on sales of new petrol and diesel cars in 2035. Rachel Reeves, the new Labour Party Chancellor, could introduce the scheme for motorists in a bid to build a “fairer” system across the country. Fuel duty is now 53p a litre for petrol and diesel vehicles. Zero-emission cars will also pay vehicle tax for the first time in 2025. The charity CBT - Campaign for Better Transport - is leading a forum of 37 organisations supporting reform, including motoring and other transport industry bodies.

What is a pay-per-mile scheme?

Using a pay-per-mile system will not only generate the income needed to cover the expected drop in road tax, we’re told it will put drivers off using unnecessary cars of all types. This would help to reduce congestion, especially if proposed variable rates of road charging were used, with high-traffic hours costing more than low-traffic ones.

Silviya Barrett of CBT said: “The new chancellor faces a looming black hole. She can avoid it, in a way which is fair, and which garners broad public support. But she should start now, as this issue will only get more pressing.” CBT said the easiest first step would be to levy a small pay-per-mile charge on zero-emission vehicles, with a transition period exempting existing drivers.

The letter said the group “fully appreciate that such a change would be difficult and be criticised by the opposition”. However, it said its research showed that 65% of the public believe it is fair for electric car drivers to be taxed, but at a lower rate than petrol and diesel drivers.

Who will pay more under pay-per-mile?

Andrew Jervis, CEO of ClickMechanic says three groups of motorists could be hit worst. He says they could impacted under a pay-per-mile system with commuters, families and those in rural areas likely to face the highest fees.

Andrew says motorists who barely use their cars still have to pay this amount to drive on UK road. He said: “There are people out there who pay the current £190 Vehicle Excise Duty while barely using their vehicles, so a pay-per-mile scheme would give them some extra money in their pockets each year.”

Who will pay less under pay-per-mile?

Drivers who do not get behind their wheel often will “likely” notice a reduction in their annual car bills if the change is brought in. Currently, the UK’s Vehicle Excise Duty (VED) fee is set at a flat £190 per year for petrol and diesel owners regardless of how often they use the roads. How much will pay-per-mile cost me?

According to analysis from the paper, drivers travelling fewer than 3,166 miles per year would save on the £190 VED fee. However, this mileage estimate doesn’t take into account fuel duty which could also be combined into any new pay-per-mile fee.

This would place the cut-off between saving on car tax or paying more at around 9,500 miles per year.- Previous governments have had to back away from the idea of pay-per-mile or road charging schemes as politically toxic, despite widespread support from experts and MPs on the transport committee.

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BEST BEST OF THE

Volvo EX30 receives theprestigiousRedDot DesignAward

The award recognises excellence in design based on four basic principles of good design: the quality of function, the quality of seduction, the quality of use, and the quality of responsibility. The jury of 39 experts from all over the world selected the EX30 as the winner in a competitive field with a total score of 93/100.

“The Volvo EX30 embodies Volvo Cars’ design values in a smaller format and is a showcase in premium Scandinavian design where form follows function,” says Jim Rowan, CEO at Volvo Cars.

“The EX30 shows the lowest carbon footprint of any fully electric Volvo car to date and is designed to be as safe as you’d expect from a Volvo car. It’s is packed with cutting edge technology and a perfect fit for today’s market as a growing number of car buyers switch to electric cars.”

The EX30 was revealed last summer and has already won more than 20 major awards, including the prestiguous Car Design award 2024, by auto&design magazine. It has also recieved The Sun Car of the Year, World Urban Car from World Car of the Year, the Small SUV/Crossover of the Year award from the Sunday Times, and the Eco Warrior of the Year award from Top Gear magazine.

Lexus is making the first revisions to its all-electric RZ luxury SUV range, introducing a new front-wheel drive model and a new entry-level grade, providing more customer choice and the potential for an increased driving range.

The Lexus EV ownership experience is also being enriched with the roll-out of Lexus Reserve, a ground-breaking complimentary hybrid vehicle loan programme for owners of Lexus electric cars.

Introducing the RZ 300e

Lexus is extending its RZ range for 2024 with the introduction of the new RZ 300e, a front-wheel drive version of its all-electric luxury SUV. It will join the line-up later in 2024 alongside the RZ 450e, introduced in 2023 which uses Lexus’s DIRECT4 all-wheel drive system.

In this new form, the RZ has an increased official driving range of up to 297 miles (WLTP combined cycle with 18-inch wheels), compared to 272 miles for the RZ 450e.

The RZ 300e uses the same 71.4kW/h lithium-ion battery as its sister model, powering a front electric motor. Output is 201bhp (150kW) with 266Nm maximum torque, enabling 0-62mph acceleration in eight seconds.

Structurally, the new model adopts a rear subframe, replacing the e-Axle unit featured in the all-wheel drive version.

In other respects, the two RZ versions are alike, displaying uniquely Lexus takumi craftsmanship luxury, a fully digital cockpit and the latest safety and multimedia technologies with the third generation Lexus Safety System+ features and the Lexus Link Pro multimedia system.

Urban: the new RZ entry-level equipment grade

Customer choice will be further extended later in 2024 with the addition of a new entry-level Urban grade for the RZ – both the new 300e and 450e versions.

The equipment specification remains fitting for a Lexus luxury model, with standard features including 18” alloy wheels, to help maximise the EV driving range, the Lexus Link Pro multimedia system with 14-inch touchscreen, wireless smartphone charger, dual-zone climate control, heated steering wheel and a 10-speaker audio system.

Safety and driver assistance features, in addition to the Lexus Safety System+ package, include Intelligent Clearance Sonar with front and rear sensors, Blind Spot Monitor and Rear Cross Traffic Alert with auto-braking and the Safe Exit Assist system to help prevent doors inadvertently being opened into the path of traffic approaching from the rear.

Across the wider model range, customers can now specify 18-inch wheels, to help maximise their RZ’s driving range, on both Premium and Premium Plus versions.

Prices and ordering details for the new RZ range and equipment options will be announced nearer the on-sale date later in 2024.

For more info visit www.lexus.co.uk

PAVING THE WAY

HyundaiMotorisdemonstratingitscommitmentto Chinabybringingsomeofitsmostimportantmodels tooneoftheworld’slargestautomotivemarket

Hyundai Motor Company is bolstering its brand competitiveness in the Chinese market by introducing its IONIQ 5 N high-performance electric vehicle (EV), all-new SANTA FE and the new TUCSON at the 2024 Beijing International Automotive Exhibition.

The company is demonstrating its commitment to the Chinese market by bringing some of its most important and in-demand models in an exhibition space that spans 1,208 square meters and features zones for new models, Hyundai N and the company’s hydrogen technology capabilities.

The New Model Zone spotlights the IONIQ 5 N, IONIQ 5 N Drift Spec, the all-new SANTA FE and the SANTA FE XRT concept. Also on display are mass-produced models including the SONATA launched in China in March, the SONATA N-Line, the PALISADE SUV, and the new TUCSON.

The Hyundai N Zone showcases a range of N models, including vehicles like the ELANTRA N1 Cup Car, ELANTRA N and N Vision 74, and specialized N Performance Parts. The zone also features the N Racing Simulator that allows visitors to experience the dynamic driving feeling and technology of high-performance N vehicles.

In the Hydrogen Technology Zone, Hyundai Motor presents its ‘HTWO Grid’ solution which combines the capabilities of Hyundai Motor Group’s affiliates to encompass all stages of the hydrogen value chain, production-storage transportation-utilization. As a customized comprehensive hydrogen energy solution, it can be tailored to the needs of different users. The zone also exhibits the W2H (Waste-to-Hydrogen) diorama and hydrogen fuel cell EV NEXO’s China model, showcasing the conversion of hydrogen fuel cell systems and organic wastes into hydrogen, highlighting the company’s commitment to eco-friendly mobility.

The high-performance IONIQ 5 N, in particular, will be a major differentiator for Hyundai Motor in the world’s largest EV market. Notably, its debut in Beijing marks the first anniversary of the Hyundai N’s entry into China at the 2023 Shanghai Auto Show.

Since its global debut at the Goodwood Festival of Speed in July last year, IONIQ 5 N has generated a lot of buzz and garnered numerous accolades, including the 2023 TopGear.com Awards, the World Performance Car by World Car Awards, and the 2024 iF Design Awards.

As the Hyundai N’s first high-performance EV, IONIQ 5 N integrates Hyundai Motor’s advanced electrification technology to maximize driving performance. It serves as a symbolic model that showcases Hyundai Motor Way, the core electrification strategy that promotes flexible electrification and builds on the brand’s design heritage.

“IONIQ 5 N embodies the three key elements of the Hyundai N: Corner Rascal, Racetrack Capability and Everyday Sports Car,” said Till Wartenberg, Vice President and Head of N Brand and Motorsport at Hyundai Motor Company.

“This model opens new horizons for high-performance EVs, offering driving excitement that remains unchanged even in the era of electrification.”

Hyundai Motor plans to launch the IONIQ 5 N in China during the second half of the year, supported by specialized marketing campaigns that will allow more customers to experience the driving pleasure and high-performance technology championed by the Hyundai N.

Also att the Beijing Auto Show, Hyundai Motor also introduced the all-new SANTA FE and the new TUCSON to strengthen the company’s SUV lineup, joining the strategic Chinese model, MUFASA, that launched a year ago.

The all-new SANTA FE comes five years after the release of the fourth-generation model in the Chinese market in April 2019. The company plans to launch it in the second half of the year.

The all-new SANTA FE stands out with its strong presence, long wheelbase and distinctive silhouette characterized by a wide tailgate. It features the iconic H light design, H motif’s front bumper and a bold roofline that emphasizes its grand presence. Furthermore, the SUV offers a spacious and enjoyable living space that allows passengers to embrace outdoor life at any time. The large tailgate space, designed with a terrace concept, can be utilized in various ways to accommodate passengers’ lifestyles.

In addition, Hyundai Motor introduced the new TUCSON, which the company plans to launch in the first half of the year. Notably, the new Tucson has been tailored to meet the preferences of Chinese customers who favor larger vehicles. It features a 30 mm expanded length, which allows a spacious interior with 4,670 mm of length and a 2,755 mm wheelbase, enhancing its market appeal.

With SANTA FE, TUCSON and MUFASA, a strategic compact SUV launched in China in June last year, Hyundai Motor aims to cater to the diverse demands of Chinese consumers through its expanded SUV lineup.

More information about Hyundai Motor and its products can be found at: www.hyundai.com/worldwide/en/

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