SMTA Monthly Bulletin November 2021

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

NOVEMBER 2021

THE SMTA ANNUAL DINNER & AWARDS IS BACK!

Headline sponsor

SMTA was delighted to host its Annual Dinner on Thursday 28th October at the new venue of Hilton Glasgow. After a year of absence due to Covid-19, the black-tie event was back and what a great night it was!

This dinner is the only event in the Scottish motoring calendar that brings together hundreds of guests from all different aspects of the trade. A chance to network, meet old friends and make new ones.

The event this year was kindly sponsored

by Central Car Auctions to which we’d like to say a huge thank you to Jason, Mary-Anne and everyone at Central Car Auctions for their valuable support.

A thank you too to all our other sponsors, EMaC, Viking Wholesale Tyres, Moto Novo Finance, Car Care Plan, Supagard, Marsh Commercial, Tyres Life, Arnold Clark and Santander Consumer.

We will be featuring each of our Award winners in upcoming editions of our magazine Auto Insight.

SAVE THE DATE! You’ll be delighted to hear that we have a date for next year’s Annual Dinner & Awards and it is Thursday 27th October 2022, at the Glasgow Hilton Hotel.

The approved insurance broker to the Scottish Motor Trade Association

REVIEW OF THE MODERN APPRENTICESHIPS IN AUTOMOTIVE 2021/22 The Scottish Modern Apprenticeship Frameworks in Automotive were last reviewed in 2016/17.

As there will be some revised qualifications added to the frameworks over the next year, the IMI as a standard setting body is carrying out a review with the sector to ensure the framework content is fit for purpose and to analyse the use of all the pathways across Scotland.

We would be grateful if you could complete our short questionnaire to give us valuable feedback on the Modern Apprenticeship Frameworks.

Take the survey here

USED CAR SALES DECLINE 6.2% IN Q3 AS SUPPLY SHORTAGES ‘UNDERMINE’ RETAIL SECTOR Used car sales declined 6.2% in Q3 as vehicle supply shortages continued to “undermine” the retail sector, the Society of Motor Manufacturers and Traders (SMMT) has said.

Transactions declined 6.2% against strong Q3 2020 to 2,034,342 units, leaving the sector’s used car activity up 16.4% year-to-date but still 4% down against same period prior to the COVID-19 pandemic.

Year-to-date the used market was 16.4% up on 2020 to 5,889,601 units at the end of the quarter – an increase of 829,780 transactions – but 3.9% (241,160 units) off the total for the first nine months of 2019.

The SMMT reported that used car transactions had declined in every month in Q3, with July, August and September falling, by 4.9%, 5.9% and 7.9% respectively.

Overall, the period is down 2.0% on 2019 pre-pandemic, making it the weakest quarter three since 2015.

And while electric vehicle (EV) demand rose 56.4%, with 14,182 cars changing hands, Auto Trader commercial director Ian Plummer warned those outside the sector “not be fooled” into thinking the UK’s shift to EVs was happening at pace.

Figures courtesy of the SMMT (Scottish Motor Manufacturers and Traders)

Read full AM Online article here

2

SMMT PUBLISHES GUIDING PRINCIPLES FOR MARKETING AUTOMATED VEHICLES y SMMT publishes new guiding principles to ensure marketing of automated vehicles is clear and comprehensible. y Industry-led initiative, developed and agreed by the Centre for Connected and Autonomous Vehicles and stakeholders, provides principles for promoting automated vehicles. y Guiding principles recognised and supported by industry, government and the Advertising Standards Authority.

THE GUIDING PRINCIPLES STATE THAT: y An automated driving feature must be described sufficiently clearly so as not to mislead, including setting out the circumstances in which that feature can function. y An automated driving feature must be described sufficiently clearly so that it is distinguished from an assisted driving feature. y Where both automated driving and assisted driving features are described, they must be clearly distinguished from each other. y An assisted driving feature should not be described in a way that could convey the impression that it is an automated driving feature. y The name of an automated or assisted driving feature must not mislead by conveying that it is the other - ancillary words may be necessary to avoid confusion for example for an assisted driving feature, by making it clear that the driver must be in control at all times.

The automotive industry has committed to a new set of guiding principles for marketing automated vehicles, published today by The Society of Motor Manufacturers and Traders (SMMT).

Developed and agreed by the Centre for Connected and Autonomous Vehicles’ AV-DRiVE Group, the principles provide an outline for responsible advertising and communication relating to automated vehicles and their capabilities.

The industry-led initiative will ensure consumers receive consistent and clear information regarding automated driving features, ahead of their expected introduction to British roads in 2022.

Mike Hawes, SMMT Chief Executive, said: “The UK is at the forefront of the introduction of automated vehicles, which has tremendous potential to save lives, improve mobility for all and drive economic growth.

It is essential that this revolutionary technology is marketed accurately and responsibly, and we are delighted to have brought together industry, government and other key stakeholders to develop a series of guiding principles that will ensure consumers will have clarity and confidence over their capabilities from when these advanced vehicles first make their way into showrooms.”

Transport Minister Trudy Harrison said: “Self-driving vehicles have the potential to make journeys safer, greener and more accessible for all, which is why we want to make the UK the best place to trial, develop and deploy their technology, to ensure we are among the first to realise their benefits.

It is essential that industry and stakeholders are clear on their responsibilities and developed in partnership with Government, motoring and road safety groups, the SMMT’s Guiding Principles are an important step to promote the safe use of automated technologies in the UK.” Matthew Avery, Director of Research, Thatcham Research, commented: “These guiding principles are a key milestone in ensuring there is no confusion around the capabilities of assisted driving systems and future automated systems, as well as the responsibilities of the drivers using them. We have long advocated consistency of terminology.

There are two clear states – a vehicle is either assisted with a driver being supported by technology or automated where the technology is effectively and safely replacing the driver.

We urge manufacturers now to use simple marketing that does not over promise functionality and the key is for them to be delivered consistently across all marketing material, as well as through effective dealership education and their subsequent conversations and engagement with consumers.”

3

UK’S USED CAR PRICE RISES ARE EUROPE’S HIGHEST, SAYS INDICATA The UK’s used car price rises are the highest in Europe, according to new data published

by Indicata. Values were 28.3% higher in October than at the start of 2021 it said, with prices up by just 3.2% in France, 8.6% in Germany, 10.2% up in Italy, and 14.9% in Portugal during the same period.

Electric Vehicles (BEVs) were the fastestselling used cars in October, according to Indicata’s latest Market Watch report, which attributed the trend to EVs being “more readily available than other fuel types” in a market short on both new and used car supply.

Jon Mitchell, Indicata UK’s sales director, said: “Used car prices continue to rise and surprise the industry but with there being no signs of new car sales increasing any time soon more and more consumers are switching to the used market for their next car. BEVs are making an impact now with more drivers looking to opt for zero

emission motoring which has to be good news on the back of the environmental commitments made in the COP26 conference.”

Earlier this week Auto Trader said that a 26.9% year-on-year increase in values to a new record average of £19,766 on its platform in October, and UK inflation at a 10-year high, was still showing no sign of impacting consumer demand.

Indicata said that UK sales were being held back only by supply constraints. October online B2C used car sales were 4.8% lower than in September and by coincidence

also 4.8% lower than October 2020, it said.

However, total online B2C used car sales for October year to date are still 17.7% higher than the first 10 months of 2020 and 2.8% above the same period in 2019, the last full year before the market was impacted by COVID-19 lockdowns.

Indicata’s data suggests that car retailer’s buoyant sales have been draining stock levels. Stocks are now 18.3% below November 2020 levels, it said.

Article courtesy of AM Online

TRADE SNIPPETS Soaring UK inflation unlikely to threaten used car demand, says Auto Trader

Monday evening prime time for car buying says BuyaCar.co.uk

Read the full article here

Window of opportunity open for Independent dealers to restock

Read the full article here

European dealer market set for further consolidation

Read the full article here

Read the full article here

Green NCAP admits tests ‘flatter’ all-electric vehicles and next year it will look at total life-cycle Read the full article here

4

LATEST CAR FIGURES

FUEL TYPE

REGISTRATIONS BY REGION

OCTOBER 2021

YEAR TO DATE Petrol

75,452

Diesel

17,970

9,194 419

16,270

Petrol/Electric

823

191

Petrol/LPG

184

468 Strathclyde

118,194

118

1,422,879 5,250

10,051 8.50%

Volkswagen

9,578 8.10%

Vauxhall

9,218 7.80%

Ford

8,140 6.89%

Toyota

7,487 6.33%

Audi

7,370 6.24%

BMW Kia Mercedes Hyundai Peugeot

152

10,500

6,730 5.69% 5,607 4.74% 5,127 4.34% 4,917 4.16%

TOP SELLING

MARQUES YTD 2021

0

Borders

4,702 2,662

Ford Fiesta

2,526

Volkswagen Polo

2,502

Kia Sportage

2,306

Ford Puma

2,236

Mercedes A-Class

2,213

Mini Mini

Toyota Yaris

Lothian

5,000

Vauxhall Corsa

Volkswagen Golf

Fife

Dumfries & Galloway

2,500

Toyota CHR

Tayside

4,486 1,259

TOTAL UK CAR MARKET:

0

712

757

Central

Diesel/Electric

=

Highlands

Grampian

8,127

Electric

Summary

Total Scotland

2,069 1,858 1,817

YEAR TO DATE

TOP 10 CARS

Figures courtesy of the SMMT (Scottish Motor Manufacturers and Traders)

5

SCOTTISH GOVERNMENT COVID-19 UPDATE This week the First Minister delivered a statement to Parliament where she confirmed that Cabinet had decided to retain all of the remaining legal COVID protections - such as the requirement to wear face coverings.

The COVID certification scheme will remain in place for a further period and from 6 December, people attending venues covered by the scheme will be given the option of providing a recent negative lateral flow test for the virus, as an alternative to proof of vaccination.

Cabinet also considered the possible extension of the scheme to a wider range of premises and decided against doing so due to the impact on the operation of businesses.

The First Minister stressed that this was a finely balanced decision and if the situation deteriorates, extending COVID certification may be a more proportionate alternative to the re-introduction of more restrictions.

Applications for the Business Ventilation Fund are now open until 31 March 2022 or when funds are exhausted – whichever occurs first. More information, including eligibility, is available on the updated Find Business Support website.

The first round of grants from the Scotland Loves Local (SLL) Fund are being distributed.

Over 100 organisations have received a £1.5 million funding boost to help revitalise cities, town centres and neighbourhoods across Scotland.

Find Business Support

LATEST LEGAL NEWS COVID-19 Employment Tribunals.

There are now a number of Employment Tribunal decisions in relation to disputes concerning COVID-19 and, unsurprisingly, health and safety issues are consistent themes running through them.

Read the full article here

6

UK Border Force.

If you are an employer, you must check those you employ have permission to work in the UK. There is an online government tool to help you make the right checks and obtain the correct documentation.

Read the full article here

Got a court case in the pipeline?

Going to court as a car dealer and winning against a consumer is often hard going.

Consequently, here are seven “deadly sins”, that you must not fall foul of unless you want to make life in court even more difficult than it is already..

Read the full article here

OUT NOW! SMTA AUTO INSIGHT ISSUE 7 READ IT HERE

WOULD YOU LIKE YOUR GARAGE TO FEATURE IN SMTA’S MAGAZINE? SMTA produces a quarterly magazine to all our members, if you haven’t got one yet our Territory Account Managers will be visiting your garage soon with a copy for you.

If you’d like your garage to feature please contact karen.thompson@smta.co.uk

DVSA MOT ANNUAL TRAINING & ASSESSMENT 2021/2022 Book your Training & Assessment today - call us 0131 331 5510 or email pauline.galloway@smta.co.uk We’re pleased to advise there’s no price increase for 2021/22 SMTA member price

SMTA CONTACTS

MEMBERSHIP ENQUIRIES/ TRADING PARTNERS: Norman Stirling – 07917 095014 Membership Development Manager Marcus Lawrence – 07375 057561 Territory Account Manager, Western Region Stuart Kennedy – 07375 057560 Territory Account Manager, Northern Region

MOT QMS ENQUIRIES David Innes – 07789 264228 Operations Manager, Support Services Colin Meldrum – 07917 042576 Support Services Consultant Gordon Laing – 07799 732124 Support Services Consultant

APPRENTICE TRAINING ENQUIRIES Fraser Miller – 07789 264229 Apprentice Training Manager Kevin Millar – 07593 800386 Kickstart Gateway Project Manager

EMPLOYMENT LAW ENQUIRIES Moira Gaynor – 0141 331 5150 Company Secretary/Finance Manager

SCOTSURE WARRANTY: Lynn Greig – 07597 581335 Scotsure Account Manager, Scotland Claims and Enquiries – 0131 331 5512

EVENTS & MEDIA ENQUIRIES: Karen Thompson – 07922 079889 Events & Media Manager

ADVERTISING/SPONSORSHIP ENQUIRIES: Wendy Hennessy – 07974 380140

- £52.00 (plus vat) Non-member price

- £60.00 (plus vat) Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS This bulletin is kindly supported by

SMTA Ltd Tel: 0131 331 5510

www.smta.co.uk

SMTA is proud to support:

Disclaimer: Whilst we endeavour to ensure the information in this bulletin is up to date and correct, we make no representations of any kind, express or implied, about the completeness, accuracy, reliability and suitability. Any reliance you place on such information is therefore strictly at your own risk.