Peter Vosper: Car sale surge offers relief before Trump's tariffs

A last-minute rush at the end of the month as manufacturers try to stimulate sales and dealers try to replenish stocks of used cars offers some relief to the industry, but where do we go from here?

Trump announcing tariffs on European cars may be a mistake with European leaders threatening to retaliate with tariffs of their own, but the British government is confident of a deal to satisfy both parties. Mike Hawes, the Chief Executive of the SMMT, talked about the long-standing and productive relationship, with US consumers enjoying vehicles from Britain built by some iconic brands while thousands of UK motorists buy cars made in America.

He suggested rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic. He urged both sides to come together immediately and strike a deal that works for us all.

The Chancellor’s statement stated clearly that we all have challenges and has undertaken that future tax rises are not the way forward. However, all of us are aware we have more increases to come from energy costs, water rates and council tax over the next twelve months.

Inflation and interest rates must continue to fall and a plan on how to make electric vehicles more popular to motorists must be made if sales targets are to be met. Prices of new vehicles have risen, and there has been a shortage of used cars since covid, which has raised their prices too. There must be confidence in the infrastructure for charging and the difference in pricing for public charging, which needs action now.

With the rise in employers’ national insurance starting this month, many businesses have cut the number of employees, and in rural areas, many will have to use their cars to find new work. Hospitality is suffering, and if businesses cannot provide accommodation, there is the further cost of travel to add to the time and distance to consider for potential employees.

Growth forecasts have been cut from 2 per cent to 1 per cent, but this will not provide the additional revenue the government is looking for to pay their bills.

Industry and commerce leaders need to work together with government to stimulate the economy, as we have more chance of solving our problems this way. We will start to see the arrival of tourists with Easter just two weeks away, followed by the summer holidays, with UK holidaymakers’ looking for cheaper holiday offers in their own country to save the costs of flying.

Once again, the car will prove itself to be the most flexible and most cost-effective method of transport, so sharing motoring cost plans for the future must be a government priority.