Electric car market loses some of its attractiveness

By the time you read this the Government will have delivered its Autumn statement and there is no question the biggest topic will be economic growth.
This will amount to a mini-budget and the question is did the statement deliver what the voting public wanted to hear.
The Prime Minister, Rishi Sunak, has already made it clear that as a result of meeting his objective to halve the rate of inflation he feels he can now reduce taxes as he sees this as a way to get things moving again and give confidence to the nation.
For most people and especially families the concerns are simple. When will interest rates come down?
Will prices, especially food, continue to fall?
What is the outlook for energy costs with the winter approaching?
Will there be enough money to enjoy Christmas and think about next year’s holiday?
By now you will know some of the answers to these questions and will be able to work out how it benefits you and the family and the press will have laid out for you in great detail how it affects your earnings and what more you get for your money.
Businesses will be looking for help too, in order to expand and take on more workers through tax incentives and/or cuts to help pay for their additional wage bills and other increasing costs.
The biggest thing we are all hoping to get from this Government is the knowledge and belief that we have turned the corner and are able to look to the future with confidence and take decisions without worrying whether there are more concerns on the horizon.
The motor industry is still trying to get back to pre-covid levels of new and used car markets and there seems little prospect of this in 2024 with forecasts of a static market place.
Higher interest rates have made it more expensive to borrow and, with leasing and personal contract purchasing having been the choice for many customers over the last fifteen years, this has had a major effect on monthly payments.
Manufacturers have invested substantially in the electric car future but with energy costs and prices of raw materials rising, electric cars sales to private owners have lost their attractiveness.
There has been a concession in the timing of the end of the internal combustion engine but this will have to be accompanied by further incentives to purchase or lease to ensure the private buyer returns to this option as soon as possible.
To those whom a reliable vehicle is vital, which applies particularly to rural areas, the solution has not been provided by turning to a second-hand product as the shortage of new vehicle supply has not created enough part-exchanges and used car prices reached record levels.
As a result of sales falling and the toughness of the market currently, prices are coming down and there are now more offers and product becoming available to potential customers.
If this government wishes to remain in power (and there are few who believe they will) not only will the Autumn statement be important to their hopes, but a continuing fall in inflation and interest charges is needed to ensure both the economy and confidence grow through 2024.