SMTA Monthly Bulletin September 2021

BULLETIN Your monthly news round-up of the Scottish Motor Industry

SEPTEMBER 2021

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USED CAR PRICES ROSE BY OVER 16 PER CENT IN FIRST EIGHT MONTHS OF 2021 Used car prices have risen on average by 16.6 per cent in the first eight months of 2021, new data suggests.

Indicata’s UK’s latest insights report shows buyers are turning their backs on new cars as the semiconductor crisis continues to bite.

This in turn is eating into the used car parc, said Indicata, with dealer stocks now 9.3 per

cent lower in September compared with the beginning of August. This is despite August used car sales falling 13 per cent in line with the usual holiday seasonal trends. Overall used car sales between January and August 2021 were 24.9 per cent above the same period in 2020 and 4.8 per cent in 2019.

Read the full CarDealer article here: www.cardealermagazine.co.uk

AUTOMOTIVE SECTOR LOSES 15,000 IN PANDEMIC, APPRENTICESHIPS HIT HARD The impact of the pandemic on the automotive sector from manufacturing through to retailing and aftermarket has cost at least 15,000 jobs.

The SMMT’s 22nd Sustainability Report reveals impact of pandemic on automotive sector sustainable development with declines in vehicle production, registrations and economic performance.

“The impact of Covid-19 can be seen across the industry, from manufacturing through to retail and aftermarket. With businesses unable to absorb the impact unilaterally, at least 15,000 jobs have already been cut across the industry.

Initial feedback from industry, manufacturers and business stakeholders suggests that the number of apprenticeships starts over the course of 2020-21 are expected to be down on the 7,156 full-year figure for 2019-2020.

The report found there was a mixed across the sector but said several of the UK’s most recognisable employers will be reducing their take-up of apprentices in 2020-21, and in some cases, are unable to take on apprentices at all.

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In these circumstances, government support mechanisms have been too small to offset the costs of the pandemic.

Nevertheless, the sector as whole remains committed to apprenticeships and continuously strives to understand how it can make best use of existing mechanisms, such as the apprenticeship levy.

was always going to be severe. As the latest Sustainability Report shows, economic and market growth stalled with many factories shuttered and retail closed.”

The industry has welcomed recent skills initiatives implemented by government. However, schemes such as Kickstart, Traineeships and Digital Skills Bootcamps are largely underutilised by businesses in the sector, many of which do not currently have the capacity to engage with such programs or find the associated requirements too constraining to deliver true value.”

Mike Hawes, SMMT CEO, said: “The impact of the pandemic on a sector such as automotive, one which depends on global supply lines, strong consumer demand and a highly skilled workforce,

Article courtesy of Motor Trader: www.motortrader.co.uk

OCTOBER MONTHLY MOT VOLUMES FORECAST POST TOWN

SUM OF FORECAST TO EXPIRE

SUM OF EXPIRED - TYPICAL

SUM OF CHANGE FROM TYPICAL

CHANGE FROM TYPICAL [%]

ABERDEEN

26304

19671

6633

33.72%

DUMFRIES

7710

5952

1758

29.54%

DUNDEE

13340

10008

3332

33.29%

EDINBURGH

41336

30937

10399

33.61%

FALKIRK

14894

10738

4156

38.70%

GLASGOW

53605

40139

13466

33.55%

HEBRIDES

1568

1210

358

29.59%

INVERNESS

14460

10321

4139

40.10%

KILMARNOCK

17845

13454

4391

32.64%

KIRKCALDY

17976

14010

3966

28.31%

KIRKWALL

2893

2180

713

32.71%

LERWICK

1349

949

400

42.15%

MOTHERWELL

17063

12375

4688

37.88%

PAISLEY

15565

11826

3739

31.62%

PERTH

9675

7133

2542

35.64%

TWEEDDALE

6135

4747

1388

29.24%

Figures courtesy of DVSA (Driver and Vehicle Standards Agency)

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PREMIUM SUVS ARE THE MOST IN-DEMAND STOCK AT AUCTION

Topping the desirability index for September was the Audi Q7 with 20% of the top 25 places taken up by premium SUVs. The increasing desire for used EVs and hybrids was apparent in September with the Tesla Model 3, Toyota Prius, Hyundai IONIQ and the Lexus RX all featuring.

This is the largest number of low and zero emission used cars that have appeared in the Aston Barclay desirability index since its inception.

A number of mid-sized hatchbacks also appeared in the list for the first time reinforcing the demand for lower price family cars such as the Toyota Auris, MG3 and Citroen DS5 in the index. Martin Potter, Aston Barclay managing director – Customer said:

8 DESIRABILITY SCORE

7 6 5

USED CAR DESIRABILITY INDEX

7.8 6.6

6.1

6.0

5.9 5.8

5.7

5.6 5.6

5.5

5.5

5.5

5.5

5.5

5.5

5.5

5.5 5.5

5.5

5.5 5.5

5.4

5.4

5.4

5.4

4 3 2 1 0 AU DI TO Q7 VO YO LV TA O LA V6 ND 0 CR SE UI AT SE ME AL R RC HA ED MB ED R A -BE NZ CL PE UG C EO T5 JAG 08 UA BM RX W J 6S ER TO IES YO TA AU RIS BM TE W SL A M X5 OD TO EL YO 3 LA TA ND PR I RO U JA S VE R R GUA R AN GE XF RO SK VE OD R AS UP ER B LE XU FO ME SR RD RC MO X ED ES ND -BE EO NZ EC CIT LASS VO LK RO SW N AG DS EN S MG SH MO AR A T O N ME RU RC KM ED GS ES -BE NZ HY CL UN A DA I IO NIQ AU DI A AU 8 DI A7

Premium SUVs are the most in-demand stock across Aston Barclay’s physical and online auction channels.

“Our latest index highlights the continued desire for premium SUVs in the used car market and it was good to witness the growing demand for hybrid and zeroemission used cars in September as more consumers consider moving away from petrol and diesels for the first time.

With the extended new car lead times currently facing the industry consumers have switched their focus to the premium used car market. Dealers continue to compete for the same stock to satisfy

consumer demand which is fuelling price rises in the market.”

Aston Barclay’s index takes into consideration three key metrics: web views prior to sale, number of physical and online bids per sale, and the sale price achieved as a percentage of CAP average.

Article courtesy of Motor Trader: www.motortrader.co.uk

IMI SKILLS COMPETITIONS FINALISTS ANNOUNCED FOR WORLDSKILLS UK INCLUDES THREE SCOTS More than 20 automotive apprentices who entered the Institute of the Motor Industry (IMI) Skills Competitions have been shortlisted for this year’s WorldSkills UK competition.

Culminating in a series of finals across the UK this November, more than 400 students and apprentices across 64 disciplines will battle it out to be crowned national skills champions.

Joanna Hollingdale, careers and student membership manager at the said: “The enthusiasm and commitment to their skills development shown by the competitors in the IMI Skills Competitions this year has been amazing. Despite lockdowns, reduced

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opportunities for hands-on learning and the general uncertainty of the pandemic, they have stepped up and demonstrated their focus, and fully deserve the opportunity to compete in the WorldSkills finals this November.”

This year sees the finals taking place in locations across the UK for the first time, on November 9-19. From the Industrial Robotics final in Ballymena, to Heavy Vehicle Engineering in Cardiff, Cyber Security in Lanarkshire and Web Design in Somerset,

the 25 venues cover all four corners of the UK. The finalists will compete for gold, silver and bronze, with the winners crowned at a ceremony hosted by TV presenter Steph McGovern from her Packed Lunch studio on Friday November 26.

Read the full AM Online article here: www.am-online.com

EV TAX PROPOSALS BACKED TO PLUG GOVERNMENT'S £40BN CAR TAX SHORTFALL Proposals that an electric vehicle (EV) tax should be introduced to help counter the loss of Government funding from the ban of diesel and petrol vehicles is supported by 38% of motorists.

That is according to the findings of a survey of 300 motorists conducted by Venson Automotive Solutions.

The research found that 87% of respondents agreed that a financial solution to recoup the Treasury’s anticipated ‘fuel tax’ loss of £40 billion as a result of growing EV adoption, is needed. And a new EV tax, which would see drivers of heavier vehicles, opposed to those with a greater engine size, paying heftier taxes, emerged as the most popular proposal.

Simon Staton, client management director of

Venson Automotive Solution, said: “Whilst it’s not anticipated that plans for a new EV tax will be revealed by the Chancellor in his October Budget, there is pressure on him to outline a 10-year trajectory to establish a financially viable means to achieving zero emissions in the UK. However, our survey findings confirm an understanding by the public that some sort of EV tax or related user charges will be necessary, which should offer Government assurances that people are mentally

preparing to make the switch, if they haven’t done so already.

A favourable tax regime, together with a raft of new models and significant growth in the charging network, will play a vital part in accelerating our journey along the road to zero.”

Read the full AM Online article here: www.am-online.com

TRADE SNIPPETS MINI delivers its one-millionth car 20 years after start of modern production Read the full Motor Trader article here: www.motortrader.com

Motor Ombudsman to 'expand scope' of Vehicle Sales Code in 5th year Read the full AM Online article here: www.am-online.com

Arnold Clark’s Craig McCracken becomes IAAF vice-president Read the full AM Online article here: www.am-online.com

Honda UK launches new virtual showroom ahead of HR-V release Read the full Motor Trader article here: www.motortrader.com

Flagship Lotus Emira V6 First Edition to cost £75,995 Read the full AM Online article here: www.am-online.com

COP26 webinar series – Zero Waste Scotland

Read the full Zero Waste Scotland article here: energy.zerowastescotland.org.uk

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