SMTA Monthly Bulletin February 2022

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

FEBRUARY 2022

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SMMT WANTS NEW REGULATOR TO HELP EASE EV 'CHARGING ANXIETY' The Society of Motor Manufacturers and Traders (SMMT) is calling on Government to create a new regulator to accelerate the expansion of the electric vehicle (EV) charge points and boost public confidence in the technology.

The SMMT today issued a seven-point plan, including the proposed creation of ‘Ofcharge’ and binding targets for chargepoint rollout, as part of a bid to “secure UK’s zero emission future”.

A 3,000% increase in the number of public charge points since 2011 has resulted in a ratio of one rapid charger per 32 EVs in the UK, according to the SMMT. The figure is the best in the Western world, behind only China (1:11), South Korea (1:12) and Japan (1:17).

But a 280% rise in the number of plug-in cars on UK roads between 2019 and 2021, as charge points increased by just 69.8% with a 586.8% rise in pure EVs accompanied by an 82% rise in rapid/ultra-rapid charger stock.

The SMMT said: “This is undermining consumer confidence to make the switch, with range anxiety now replaced by charging anxiety.”

The industry body wants every driver in Britain to benefit from “an electric vehicle charging network that is affordable, available and accessible to all”.

SMMT chief executive, Mike Hawes, said: “The automotive industry is up for the challenge of a zero emission new car and van market by 2035. Delivering this ambition – an ambition that would put

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the UK ahead of every major market in the world – needs more than automotive investment.

● Invest significantly to uplift all types of charging infrastructure, particularly public chargers, ahead of need

It needs the commensurate commitment of all other stakeholders, especially the charging industry as surveys show that range anxiety has been replaced by charging anxiety.

● Set binding targets to ensure adequate public chargepoint provision and social equity

Our plan puts the consumer at the heart of this transition, assuring them of the best possible experience backed by an independent regulator.

With clear, equivalent targets and support for operators and local authorities that match consumer needs, government can ensure the UK has a chargepoint network that makes electric mobility a reality for all, cutting emissions, driving growth and supporting consumers across the UK.” The SMMT’s seven step plan to delivering consumer-centric charging infrastructure for zero emission mobility is comprised of the following elements:

● Enact proportionate regulation to deliver the best outcomes for consumer experience and expansion of provision ● Provide adequate enabling support to incentivise and facilitate delivery of charging infrastructure ● Ensure electricity networks are futureproofed and fit for purpose for zero emission mobility If action is taken, the SMMT forecasts the new plug-in car market will continue to grow rapidly, resulting in a UK car parc comprising 9.3m plug-in cars by 2030 (27%) and 18.4 million by 2035 (54.8%), of which 6.9 million (20.1%) and 15.3 million (45.6%) respectively are zero emission.

● Embed consumer-centricity in policy and a national plan on charging infrastructure ● Develop and implement a nationally coordinated but locally delivered infrastructure plan

Read the full SMMT plan here

TRADITIONAL RETAIL MODELS TO EXPERIENCE “HUGE DISRUPTION” WITH INCREASED AGENCY INTEREST The distribution and retailing of vehicles is set to change as much in the next five years as it has in the last 50, according to the latest issue of Cox Automotive’s AutoFocus report.

Philip Nothard, Insight and Strategy Director at Cox Automotive, said: “When you look at the increasing interest from OEMs in agency models, changing consumer sales trends and the recent rise in the popularity of EVs, all signs point towards huge disruption to traditional automotive retail models. As a result, the next few years are likely to bring unprecedented change to the way people sell and purchase vehicles.”

The B2C sales retail model is currently undergoing change, as OEMs look to reduce costs by selling directly to consumers.

Historically, OEMs including Audi, BMW, Volkswagen, and General Motors have directly sold to fleets. However, selling directly to customers is less straightforward, leading to the success of the dealer-centric model for many years.

Owen Edwards, Head of Downstream Automotive at Grant Thornton UK LLP, said: “Stellantis, Mercedes Benz and Volkswagen have reported that they will be implementing a direct B2C process, also known as the agency model, but it’s unknown whether this will be the full agency model.”

Full agency models occur when all transactions are undertaken online, and the dealer receives a handover fee as part of the process. The alternative is a derivative model, which includes some of the characteristics of the current franchise model. However, the OEM still sells directly to the consumer, with the dealer contributing to a smaller part of the sales process.

Edwards added: “We believe that the full agency model is unlikely to be implemented by all OEMs; instead, the agency derivative model will be preferred.

The reason for our thinking is that all OEMs and their dealer networks are different, and to fulfil the required growth strategy of each of the OEM and its dealer networks, each OEM will need a different model; there will be no single standard agency model that fits all.”

Nothard concluded: “Edwards raises the question whether OEMs could go down the direct sale route for used vehicles, a market that’s widely understood that OEMs want to play a more significant part in. This would generate more profits through the sales of additional

car finance and additional spare parts, which are profitable for both the OEMs and their national sales companies.

Presently, some OEMs already are, with one example being the used online marketplace HeyCar, currently owned by Volkswagen and Mercedes Benz.

Cox Automotive and Grant Thornton both believe that the downstream industry will be affected by the rise of subscription market, which, while small at present, fits well with the agency model and omnichannel process. Customers benefit from this model by paying a monthly fee for all services for 9-12 months. In addition, reports from subscription provider OnTo suggest that subscribing for a BEV can often work out cheaper than leasing. It’s clear that subscription will be slow to take off, but with BEVs on the rise, it’s another way that flexible customer service can be offered by OEMs, dealers, and independent used car operators.”

Article courtesy of Motortrader

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END OF LEGAL CORONAVIRUS RESTRICTIONS On 21 February 2022, the Westminster Government published their “Living with COVID-19” plan detailing their proposal to remove all coronavirus restrictions from law in England in light of widespread vaccine protection in the population and the hope that the stability of the pandemic will continue to increase.

Whilst the plan has still to be scrutinised in Parliament, it is expected to be implemented.

The key changes proposed by the plan are set out below and can be accessed here.

SELF-ISOLATION From 24 February 2022, the following changes will be made to remaining selfisolation requirements: y The legal requirement to self-isolate following a positive test will be removed but those with coronavirus will still be advised to stay at home and avoid contact with others y Close contacts of those with coronavirus will no longer be required to test daily for 7 days (if vaccinated) or self-isolate (if not fully vaccinated) but guidance will be issued with advice for close contacts y Self-isolation support payments, national funding for practical support and medicine delivery services will cease however, those who were told to self-isolate prior to 21 February will have 42 days to access these measures y The Health Protection (Coronavirus, Restrictions) (England) (No. 3) Regulations will be revoked, meaning that many of the Government’s powers to close premises and regulate events for coronavirus-related reasons will be relinquished y Workers will no longer be legally required to tell their employers if they have coronavirus From 24 March 2022, the rules relating to Statutory Sick Pay (SSP) for coronavirusrelated absences will end, meaning that pre-pandemic SSP rules will resume. SSP will therefore only be payable after three waiting days and only where the individual satisfies the normal eligibility criteria. The coronavirus-specific Employment and Support Allowance rules will also end.

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From 1 April 2022, the health and safety requirement for every employer to explicitly consider coronavirus in their risk assessments will be removed but some business may still need to consider it where the risk is prevalent in their business, in line with pre-existing health and safety laws.

TESTING From 21 February 2022, the guidance which encouraged staff and students in most education and childcare settings to undertake twice-weekly asymptomatic testing is removed.

From 1 April 2022, the Government will no longer provide free testing for the general public in England. However, limited testing will be available for social care staff and a small number of at-risk groups.

CONTACT TRACING From 24 February 2022, routine contact tracing will end however those who test positive will be encouraged to inform close contacts so that they can follow the relevant guidance.

England, Wales and Scotland, the devolved administrations in the other parts of the UK will continue to set their own rules in relation to the pandemic.

The Scottish Government confirmed yesterday that its remaining legal restrictions will also be removed, with the laws requiring vaccine passports to be produced upon entry to certain events being removed from 28 February 2022 and those requiring face coverings in certain settings being removed on 21 March 2022.

However, self-isolation in Scotland was already underpinned by guidance rather than law and so the situation in that regard is largely unaffected. The Scottish Government is planning to review its approach to testing around the end of March but is still encouraging those with symptoms to have a PCR test meantime. Support payments for those self-isolating will also remain available for now.

From 1 April 2022, the Government will remove the current guidance on domestic voluntary coronavirus-status certification and will no longer recommend that certain venues use the NHS COVID Pass app.

Whilst the above proposals may be a welcome relief to businesses who have been struggling with staffing due to self-isolation periods in recent months, the Government has been clear that with this plan, they want to empower businesses to make their own decisions in terms of how they are going to manage the impact of coronavirus in their workplace.

From 1 April 2022, guidance to the public and to businesses will reflect public health advice however, there will continue to be specific guidance for those who are at higher risk of serious illness from coronavirus.

As such, businesses will need to decide what approach they wish to take. We will be providing our retained clients with an FAQ document in early course to assist them in making these important decisions.

The plan also confirms that by 1 April 2022 the legislation requiring those in health and social care settings to be fully vaccinated will be revoked.

If you have any questions about the changes to coronavirus restrictions in the meantime, or following receipt of the FAQ document, please do not hesitate to call us on 0141 331 5150.

Separately, we also take the opportunity to advise the SSP Rebate Scheme will end on 17 March 2022, with a deadline of 24 March 2022 in place to submit any new claims. Whilst the SSP Regulations apply in

Article courtesy of Just Employment Law

LATEST CAR FIGURES

FUEL TYPE

REGISTRATIONS BY REGION

JANUARY 2022

YEAR TO DATE

Total Scotland

7,140

Petrol

10,617

1,075

Diesel

420

1,590

Petrol/Electric

Grampian

757

Electric Diesel/Electric

30

Petrol/LPG

25

=

Summary

1,189

641 Strathclyde

10,617

750

111

1,200

Vauxhall

985

Kia

881

Volkswagen

879

Audi

666 611

Ford BMW Peugeot

578 504

Hyundai

456

Mercedes

405

202

1,500 11.30%

9.28%

8.30% 8.28%

6.27% 5.27%

5.44% 4.75%

4.29% 3.81%

TOP SELLING

MARQUES YTD 2022 Figures courtesy of the SMMT (Scottish Motor Manufacturers and Traders)

Tayside Fife

5,024 1,384

115,087 Toyota

732

914

Central

TOTAL UK CAR MARKET:

0

Highlands

Lothian Borders

Dumfries & Galloway

0

250

500

444

Kia Sportage

393

Vauxhall Crossland

376

Vauxhall Mokka

319

Vauxhall Corsa

270

Volkswagen T-Roc

226

Ford Focus

215

Peugeot 2008

208

Mini Mini Ford Puma Audi A1

176 172

YEAR TO DATE

TOP 10 CARS 5

WEST END GARAGE EDINBURGH WINS ŠKODA RETAILER OF THE YEAR Congratulations to SMTA Member, West End Škoda! ŠKODA UK has announced the winners of its annual Retailer of the Year (ROTY) awards, with West End Garage ŠKODA in Edinburgh scooping the top prize for 2021.

The top spot is based on consistently excellent performance throughout the year, taking into account sales, aftersales and customer satisfaction.

retailer network, who I am proud to say have been nimble and adaptive to ensure that our customers still receive the very best service. Huge congratulations goes to the Edinburgh team at West End

Garage ŠKODA, who have enjoyed a brilliant year and set a high standard for business excellence.”

Article courtesy of AM Online

West End Garage ŠKODA in Edinburgh proved a strong contender in 2021 taking home the top accolade of Retailer of the Year.

This year’s runners-up were Simpsons ŠKODA (Great Yarmouth) and D M Keith ŠKODA (Grimsby), who were awarded second and third place, respectively.

Kevin Rendell, Head of Sales Operations, ŠKODA UK, said: “The last 12 months have continued to throw challenges to our

TRADE SNIPPETS Dealers that offer add-ons more likely to be recommended Article courtesy of AM Online

Semiconductor shortage forces Mini factory to suspend production again Article courtesy of CarDealer Magazine

UK motor finance rises 16% in 2021 to hit £45.2bn Article courtesy of Motortrader

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Car shipping firms face £150m compensation claim for price fixing Article courtesy of AM Online

Franchised retail model will see ‘unprecedented’ change in next five years thanks to new trends and agency sales Article courtesy of CarDealer Magazine

Used car market returns to growth in 2021, up 11.5% Article courtesy of Motortrader

ISSUE

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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.