SMTA Monthly Bulletin April 2022

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

APRIL 2022

MOT SEMINARS 2022

SMTA in conjunction with the DVSA will be holding six MOT seminars across Scotland. These seminars will bring you the latest MOT information from the DVSA.

NOT TO BE MISSED!

Glasgow 10th May

Over 70% sold

Edinburgh 11th May

Over 70% sold

St Boswells 12th May

Over 70% sold

Perth 17th May

Over 70% sold

Aberdeen 18th May

SOLD OUT

Inverness 19th May

Over 70% sold

Seminars kindly supported by

Places are limited, so click the link below to buy your tickets now!

CLICK HERE TO BUY TICKETS

BOOK YOUR MOT TRAINING AND ASSESSMENT FOR 2022/23 You can now book your MOT training and assessment with SMTA, in conjunction with the IMI. We are pleased to confirm there is NO price increase from last year!

To book your training and assessment email:

pauline.galloway@smta.co.uk

The approved insurance broker to the Scottish Motor Trade Association

A QUARTER OF CAR BUYERS MORE LIKELY TO BUY BRITISH, RESEARCH FINDS A quarter of in-market car buyers say they are more likely to buy British brands or choose cars manufactured in Britain to support the automotive sector.

According to the latest in-market research

by WhatCar? a quarter of buyers (25.07%) said they are more likely to buy from British brands or cars they know are manufactured in the country to support the domestic industry.

This is down from a high of 44.62% from January 2021, when What Car? asked the same question (whether consumers believe it’s important to support domestic manufacturers) during the third lockdown as showrooms were forced to close and sales plummeted by 40%.

Steve Huntingford, editor, What Car?, said: “Though the need to support domestic businesses has dropped from the highs seen during the worst months of Covid, buyers are still aware their purchase can help manufacturers operating in the

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country. This is particularly important for a sector that employs more than 797,000 people and contributes £11.9 billion in added value to the UK economy.”

The country of manufacturer is important for 43.12% of all buyers surveyed, with 9.82% claiming it very important and saying it dictates their purchase decision.

Earlier this month Society of Motor Manufacturers and Traders (SMMT) registrations data showed that the UK automotive sector has suffered its worst March new car registrations result since 1998.

When it comes to waiting longer for cars built in Britain or cars from British brands, 45.59% said they wouldn’t mind a longer lead time compared to other vehicles.

Cox Automotive’s latest forecasts have revealed that new car registrations are expected to decline 10% year-on-year in the first half of 2022 with all hopes pinned on a recovery in H2. While a quarter of buyers told What Car? that they were more likely to buy British, the survey also found 61% of all respondents believe it important for buyers in general to support British manufacturers and car brands.

What Car? also surveyed whether buyers know where their current car is manufactured, with 19.46% of owners unaware of their car’s country of origin.

Article courtesy of AM Online

GARAGES MUST PREPARE FOR SPRING MOT SHORTFALL Garages and workshops are being warned of a shortfall in MOT test demand this spring, as a result of the MOT extension in 2020. According to BookMyGarage.com, there will be up to 2m fewer MOT tests in April and May when compared to pre-pandemic levels.

The peak months for MOT tests this year will be September and October, when MOT numbers last year were 22% higher than prepandemic levels.

when they get their MOT. Losing this opportunity instead of gaining ground lost to fast-fits or other rivals could deal a significant blow to any garage.”

up capacity ahead of the busy September to December period. While this year will be highly backloaded, garages can act and adapt now.”

“There’s never been a better time to adapt fast by increasing market share and gaining conquest bookings – the months ahead will once again see historically low MOT numbers, yet garages can battle this shortfall by offering consumers the added transparency and convenience of a digital customer journey,” said Karen Rotberg, cofounder of BookMyGarage.com.

Last April and May saw 3.1 million MOTs take place, and while this represented a recovery of 1.5 million MOTs on the same months in 2020, it still fell significantly short of the 5.4 million MOTs which took place in 2019.

The IMI recently highlighted fears of a shortage of MOT testers that could lead to longer waiting times for tests in April.

“April and May will be tough months because as well as fewer MOTs, there will be less servicing work. In fact, our research shows that nearly 70% of drivers aim to have their vehicle serviced

The data shows how the long-established distribution of MOTs conducted throughout the year is, for now at least, a thing of the past. Traditionally, March and September would show modest spikes due to the new car registration release dates.

DVSA data, analysed by the IMI, showed that more than 40% the UK’s MOT testers needed to complete their annual assessment by March 31, or they would be suspended from testing.

Rotberg added: “With a post-summer rush in sight before long, it is the time to scale

Article courtesy of AM Online

MAY MOT VOLUMES FORECAST * POST TOWN

SUM OF FORECAST TO EXPIRE

SUM OF EXPIRED TYPICAL

SUM OF CHANGE FROM TYPICAL

CHANGE FROM TYPICAL [%]

ABERDEEN

11,252

23,063

-11,811

-51.21%

DUMFRIES

2,988

6,667

-3,679

-55.18%

DUNDEE

5,684

11,278

-5,594

-49.60%

EDINBURGH

15,931

34,954

-19,023

-54.42%

FALKIRK

5,721

11,723

-6,002

-51.20%

GLASGOW

19,621

42,450

-22,829

-53.78%

HEBRIDES

458

1354

-896

-66.17%

INVERNESS

5,355

12,499

-7,144

-57.16%

KILMARNOCK

7,680

15,371

-7,691

-50.04%

KIRKCALDY

7361

16,324

-8,963

-54.91%

KIRKWALL

981

2,643

-1,662

-62.88%

LERWICK

488

1261

-773

-61.30%

MOTHERWELL

6,853

13,801

-6,948

-50.34%

PAISLEY

5,726

12,641

-6,915

-54.70%

PERTH

3,820

8,222

-4,402

-53.54%

TWEEDDALE

2,485

5,486

-3,001

-54.70%

May 2022 figures courtesy of DVSA (Driver and Vehicle Standards Agency) 3

BMTA TRUST – IS LOOKING FOR BOARD MEMBERS

The BMTA Trust was in its former life The British Motor Trade Association, the leading UK Motor Industry organisation both representing the interests of car manufacturers and dealers and having legal powers over key areas of their business activities.

The Trust has recently revised its terms of reference and while remaining committed to offering welfare grants to motor industry connected individuals or families in need, seeks to expand its support for technical education and career development.

This can take the form of offering grants to young people for whom financial restraints may provide a barrier to motor trade entry.

Grants can be made available for training course costs, travel, subsistence, and personal tool requirements. In all instances we require to be satisfied that there is evidence of need, and that there is a tangible connection to the Motor Industry.

Grants will also be considered for mature technicians requiring to up-skill for hybrid and EV service and repair. As a rule grants are normally made to individuals or families but there can be exceptions where a development grant may be awarded in

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support of a project or initiative driven by another charity based organisation, involved in fostering the careers or well-being of young people. The BMTA Trust has a number of close working relations with established UK Motor Industry organisations such as SMTA, BEN, IMI, and recently added to these are Heritage Skills Trust, GASP Surrey, and Autotech Academy.

be a requirement for a few interim email exchanges, but these are not frequent.

During the pandemic we have successfully held a number of 'Zoom' type meetings.

Meetings which typically last 2/3 hours with lunch to follow, have traditionally been held in London. During and post Covid we have moved these out to the general area of the South East/ South Midlands.

The current Board of Trustees has become somewhat depleted due to the recent retirement of long serving trustees, and we seek to make two or three new appointments in the course of this year.

Ideally, they would have people from manufacturer, retail, aftersales, training.

Through our relationships referred to above we have recently started to meet in facilities provided by them, or at a suitably located golf or country club. In line with Charity Commission guidelines, Trustees are not paid for their work but will have their reasonable travel expenses refunded.

The time commitment for the role is modest with a maximum of 3/4 meetings per annum, with a few hours required in advance of each meeting to read and consider grant applications. Between meetings there may

If you are genuinely interested and wish to put your name forward, please email former SMTA president at alasdairpearson@btinternet.com for more information.

GLOBAL SUPPLY CHALLENGES WIPE 100,000 CARS FROM UK AUTOMOTIVE OUTPUT IN FIRST QUARTER ● UK car production falls -32.4% in first quarter, a decline of 99,211 units on pandemic-affected Q1 2021. ● Output for March drops -33.4% to 76,900 units, as 4.3% rise in production for the UK fails to offset -41.4% exports decline. ● As manufacturing costs soar, sector calls for measures to shore up UK’s global competitiveness and secure the UK supply-chain.

Thursday 28 April, 2022 UK car manufacturing declined -32.4% during the first three months of 2022, with almost 100,000 fewer units made than in the same period last year, according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT). With production volumes still constrained by the ongoing global shortage of semiconductors and other components, 207,347 new cars were built during the first quarter, down from 306,558 in pandemicaffected Q1 2021.

Output in the last month of the quarter fell by more than a third, down by -33.4% yearon-year, with 76,900 units made compared with 115,498 in the same month last year.

This decline, resulting in the weakest March since the financial crisis in 2009,1 was driven primarily by a decrease in production for overseas markets, which fell by -41.4%.

Exports to the US saw the greatest decrease during March, dropping by -63.8% year-

on-year, largely due to the closure of a major plant in Swindon in July 2021 which manufactured for the US market, while exports to the EU declined by -24.5%.

Despite this, seven in 10 cars (72.5%) made in the UK last month were built for export, with the EU taking the majority (67.0%), followed by the US (8.2%) and China (6.6%). Production for the domestic market, meanwhile, increased modestly by 4.3%, equivalent to 864 additional units. Over the course of the first quarter, outputs for both export and the UK domestic markets fell by -35.0% and -20.3% respectively.

Production volumes remain constricted with the ongoing global semiconductor shortage, the Ukraine crisis exacerbating parts supply challenges and manufacturers facing an increasingly challenging economic environment with rising energy costs and other inflationary factors.

To ensure the UK remains a competitive environment in which the latest and greenest vehicles can be ‘Made in Britain’, the UK automotive industry is calling for relief on energy costs equivalent to that afforded energy intensive industries and access to low cost and low carbon energy, comparable to European competitors.

Mike Hawes, SMMT Chief Executive, said, “Two years after the start of the pandemic, automotive production is still suffering badly, with nearly 100,000 units lost in the first quarter. Recovery has not yet begun and, with a backdrop of an increasingly difficult economic environment, including escalating energy costs, urgent action is needed to protect the competitiveness of UK manufacturing. We want the UK to be at the forefront of the transition to electrified vehicles, not just as a market but as a manufacturer so action is urgently needed if we are to safeguard jobs and livelihoods.”

CAR MANUFACTURING Mar-21

Mar-22

% change

YTD-21

YTD-22

% change

Total

115,498

76,900

-33.4%

306,558

207,347

-32.4%

Home

20,269

21,133

4.3%

54,650

43,548

-20.3%

Export

95,229

55,767

-41.4%

251,908

163,799

-35.0%

% export

82.5%

72.5%

82.2%

79.0%

CAR OUTPUT – ROLLING YEAR TOTALS (millions) 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 0.8 0.7

760,364

Mar 2016

Mar 2017

Mar 2018

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

Mar 2019

Mar 2020

Mar 2021

Mar 2022

UK SEES 15-FOLD INCREASE IN EV MODELS SINCE 2011 There has been a 15-fold increase in choice of EV model in the UK since 2011, as well as, on average, more than three times the battery range compared with a decade ago, according to new research by the Society of Motor Manufacturers and Traders (SMMT).

At the time of the launch of Britain’s first mass-produced battery electric vehicle, the Nissan LEAF, in 2011, just nine plug-in car models were available in the UK – making up less than one in 1,000 total registrations.

Today, there are more than 140 plug-in models available, accounting for around one in five new cars sold this year, with a further 50 models expected to be launched by the end of 2022.

SMMT will show this wide range of choice at its annual Test Day driving event on Tuesday, with 33 manufacturers demonstrating more than 100 models at Millbrook Proving Ground, including 42 plug-in electric models on the circuit.

Mike Hawes, SMMT Chief Executive, said, “The ever-increasing number of electric vehicle models launched by manufacturers since 2011 shows just how far Britain has come, with industry investment stimulating innovation at an ever-faster rate. With almost 200 electrified models expected to be available by the end of the year, manufacturers are turning ambitions for zero and ultra-low emission mobility into a reality, while motorists’ demand for these vehicles increases month by month.

“To turn this nascent demand into a mass market, however, motorists need choice, affordability and the confidence to charge.

The UK has an ambitious timescale to deliver net zero and road transport must shoulder the biggest burden delivering that goal. The industry is up for the challenge but we need all stakeholders, including government, charge point providers and energy companies, to match manufacturers’ commitment by providing the competitive incentives and infrastructure that assures a zeroemission future.”

Article courtesy of Motortrader

TRADE SNIPPETS Vehicle supplies, compliance and new mobility are car retailers top concerns Article courtesy of AM Online

The used car market is showing signs of shrinking, but a price crash is not on the horizon.

Article courtesy of CarDealer Magazine

Stock availability is ‘biggest challenge’ for used car dealers in coming months Article courtesy of Motortrader

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FCA to examine gender and ethnic diversity on firms' boards and committees Article courtesy of AM Online

Used Land Rover SUVs achieved biggest profits in March 2022, says Dealer Auction Article courtesy of CarDealer Magazine

Arnold Clark drives efficiencies out-sourcing licence checks Article courtesy of Motortrader

LATEST CAR FIGURES

FUEL TYPE

REGISTRATIONS BY REGION

MARCH 2022

YEAR TO DATE Petrol

23,877

Diesel

4,081

Petrol/Electric

5,421

Total Scotland

21,069 1,035

Grampian

3,543

Electric Diesel/Electric

76

Petrol/LPG

81

=

Summary

2,087

2,901

2,500

280

4,260 2,730 2,680

Kia

7.23%

2,478

6.68%

Audi

2,475

6.67%

2,210

BMW Mercedes Peugeot Hyundai

1,973 1,710 1,676 1,289

11.49%

7.36%

Volkswagen

Toyota

395

5,000

5.96% 5.32%

4.61% 4.52%

3.48%

TOP SELLING

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

1,250

831

Mini Mini

792

Ford Puma Kia Sportage

763

Other UK, other British

751

Toyta Yaris Cross

2,500

1046

Vauxhall Mokka

Volkswagen Golf

Borders

2,242

Vauxhall Corsa

Kia Niro

Lothian

Dumfries & Galloway

0

Vauxhall Crossland

Fife

9,983

Strathclyde

37,079

Vauxhall

1,582 Tayside 1,075

417,560 Ford

1,731

Central

TOTAL UK CAR MARKET:

0

Highlands

733 619 591 583

YEAR TO DATE

TOP 10 CARS 7

ISSUE

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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

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 2022/2023 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

- £52.00 (plus vat)

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

Non-member price

- £60.00 (plus vat)

This bulletin is kindly supported by

Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS 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.