Simon Smith

The UK’s zero emission vehicle transition came under fresh scrutiny today with SMMT's publication of the all-important plate-change month performance data. In good news, both the new car and van markets were up in September, but the scorecard shows there is still a job to be done. New electric car registrations saw a welcome boost in the month but still represent just 17.8% of the overall market in 2024. Growth has been driven by fleets but held back by ebbing private demand, -6.3% down year-on-year. Uptake of zero emission vans, meanwhile, has fallen by -0.3% across 2024, representing just 5.2% of the overall market. More in this week’s Update: https://lnkd.in/egv8gmMh

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The Challenge of Electrification: The Hard Work Begins Now The Society of Motor Manufacturers and Traders (SMMT) recently reported that the UK's light commercial vehicle (LCV) market saw its best first half since 2021, with registrations up 4.5%. However, a decline in battery electric van (BEV) demand, down 16.8% in June, signals that the initial phase of electrification is complete, and the industry now faces the tougher challenge of transitioning larger and heavier vehicles to electric power. The initial electrification efforts have focused on passenger cars and lighter commercial vehicles, which are relatively easier to transition due to their shorter range requirements and lighter weight. A significant counterargument to the current electrification approach is that developing more powerful batteries will take time and doesn't address the issue of increased vehicle weight, which reduces payload capacity. This is where hydrogen solutions could play a pivotal role. Hydrogen fuel cells offer a promising alternative for heavy-duty vehicles due to their higher energy density and faster refuelling times compared to batteries. Additionally, hydrogen internal combustion engines could provide another pathway to reduce emissions while leveraging existing combustion engine technology. Recent data from Forecourt Trader highlights the low interest in electric vans among buyers, indicating that current BEV options do not meet the practical needs of many commercial users, especially in terms of range and payload capacity. This underscores the importance of exploring alternative technologies like hydrogen to meet the diverse needs of the commercial vehicle market. Many in the commercial vehicle industry are lobbying for hydrogen solutions, both internal combustion and fuel cell, and manufacturers have responded by developing and producing these vehicles. The slowdown in electrification, particularly in the commercial vehicle sector, puts the government's net zero targets at significant risk. Without accelerating the adoption of zero-emission vehicles, the UK will struggle to meet its ambitious climate goals. The new government must therefore support diverse technological solutions, including both advanced battery technologies and hydrogen, to ensure a comprehensive and effective transition to sustainable transportation. Compounding these challenges, the new government has little fiscal room for manoeuvre. The previous government's strategy of smart regulation, which involved setting targets and fining manufacturers who failed to meet them, is proving ineffective in the face of consumer resistance. This highlights the need for innovative policies and support mechanisms to drive the market forward. As the industry moves into this more challenging phase, it will require collaboration between manufacturers, policymakers, and other stakeholders to overcome these hurdles and continue progress toward net zero emissions.

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BNEFs 2024 New Energy Outlook no longer sees any role for hydrogen in home heating or cars Total hydrogen demand in the net zero scenario revised down to 380mt by 2050, 20% lower than in the previous outlook This has been our thesis since July 2021 in running our Environmental Impact 100 strategy ARK Investment Management LLC ARK Invest Europe Sustainable Market Strategies

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Some killer stuff in the June edition of Auto Trader Insight's excellent monthly update: 1. New is pretty flat and retail demand is still under pressure - shout out to the fleet sector. Electric share is creeping up (a solid 19% in June but 16.6% year-to-date), so work to do for ZEV targets - Q3 promises to be hot 🔥 2. Used is firing, visits up and increased sales evidence of strong demand. Supply is down in almost every age cohort, with only sub-1 year old and 10-15 year olds seeing more than last year 3. Looking ahead, supply will never be the same again. The parc will be bigger, older and electrified, but brands are affected in very different ways. Check out page 8 to find out which will see the biggest supply drops and who's transitioning to electric faster, wrapped up in designs that are as cool as a no-look penalty 😎 Target.

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Are UK electric vehicle sales on track to meet the rising ZEV Mandate targets? Figures from the Society of Motor Manufacturers and Traders (SMMT) show that BEV sales surpassed the 22% mandate for the first time in August, making up 22.6% of new car sales. However, while this is a positive step, overall BEV sales in 2024 remain below the target. What more could be done to ensure next year’s threshold, set to increase to 25%, is met? #ElectricVehicles #BEV #ZeroEmissions #ZEVMandate #Sustainability #GreenTransport #UKAutomotive https://lnkd.in/erEZ_hR6

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Good news for the UK Aftermarket as data shows strength in numbers. According to SMMT / ONS figures the UK Aftermarket has bounced back from the impact of Covid-19 and now generates over £56bn. Equally impressive, is that the net contribution to the UK economy has grown by over 28% compared to pre-Covid figures to over £16bn. The importance of the UK Aftermarket is now clear – not only is this sector the largest in the automotive industry, with over 61% of the whole automotive sector coming from the Aftermarket, but this also reflects the increasing productivity benefits generated in the aftermarket that contribute so positively to the UK’s economy. #aftermarket #automotive #mobility

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Interesting developments as some manufacturers start to put electric vehicles quotas on larger orders, e.g. insisting that 10% of the order must be BEVs, in an attempt to meet the UK ZEV mandate targets. Others, including Ford Motor Company and Stellantis, have both warned they could restrict sales of ICE vehicles this year as a response to the mandate. Full story on Fleet News, reported by Gareth Roberts, following a discussion on the April Fleet News at 10 #webinar #electricvehicles #electriccars #electricvans #fleets #fleetnews #fleetmanagement

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In terms of the ambition of 50GW by 2030 sign me up! Thanks for sharing Harry Laxton I think the idea of mandating solar is great but the details are key! For example who can do this work and what are the expectations/guidelines around processes and qualification? What will be the checks and balances to ensure that the policies are achieving the desired social and environmental outcomes everyone wants? Smart Ease #commercialsolar #paymentplans #solarppa #decarbonisation

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A leading electric vehicle (EV) charge point management platform has secured £8.7 million of funding to propel its next phase of growth in the UK and Ireland. Lancaster-based Fuuse's investment comes from lead investor YFM Equity Partners, and existing investors Par Equity and an angel syndicate. The money will be focused on scaling its enterprise product offer that delivers a trusted and reliable charging experience for charge point operators, destinations, fleets and workplace charging, as well as providing additional products and services for its network of solutions partners. Clients include SSE plc, ScottishPower, British Airways, Siemens, United Utilities and Arnold Clark. Commenting on the investment, Michael Gibson, Fuuse CEO said: "YFM’s experience of working with innovation-led businesses has proved invaluable. The team immediately understood our vision and recognised our potential. With the backing of YFM, Par and our angel investors, we can continue to curate the future of EV infrastructure and help more customers to deliver an optimised, reliable and trusted EV charging experience." Andy Thomas, YFM Partner, added: "We are thrilled to have joined Fuuse on the next stage of their journey. The company’s software is designed to constantly evolve, helping to futureproof EV charging infrastructure. It’s a comprehensive product that can serve the differing needs of a range of customers, which places it in an advantageous position going forward. Led by a strong management team, with a clear vision and sophisticated strategic approach – which will be crucial to its future success and will enable responsiveness in a fast-growing market. We are confident that, with our support, Fuuse can take full advantage of emerging opportunities." Alastair M., Senior Investment Manager at Par Equity, said: "Since we first partnered with Fuuse in 2022, the company has seen dramatic growth, establishing itself as a market leader in the UK providing a robust, reliable software solution across the UK and Irish EV infrastructure and building a fantastic platform for international expansion.  The majority of Par’s investment was provided through our new Scale-Up Fund, which is designed to support some of the most exciting B2B technologies emerging from the North of the UK and it’s very encouraging to see Fuuse join this cohort of rising stars." Fuuse power EVC Connect, the management system behind EVC Solutions Ltd. EVC Solutions can help you switch your fleet to electric vehicles (EV) with a fully managed charging system and installation. Visit the website or call 03300 904030 and see what's possible. #evcharging #electricvehiclecharging #electricvehicles

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Design for #circularity is one of THE ways to #netzero and #sustainability. Application of Circular Economy is only going to grow exponentially across all industries and value chains.

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#StandardProfil: "We re-examine our model estimating the timing and success of any new deal." Tomas Mannion - Sarria - Credit Opportunities Want to hear more about what we do? DM Malika Varsani. Not a client? Request a trial here: [email protected] Sign up for our newsletter here: https://bit.ly/3mgFWgB #highyieldbonds #distressedassets #distressedcredit #assetmanager #fundamentalanalysis #highyield #excelmodel #specialsituations #distresseddebt #sarria

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At Auto Trader UK, It's been our mission over many years to drive greater levels of trust and transparency in the #automotive market so that all consumers have the confidence to buy or finance their next #car. Whilst we’re supportive of the direction of travel in the Court of Appeal rulings last week, in the short term this shock decision has reduced choice and the availability of finance for consumers.    While the Court’s judgement and its impact on past sales of #finance will very likely be appealed at the Supreme Court, that will take months. What’s urgently needed now by both consumers and the #automotive industry is for the regulator to clarify the implications of this ruling to ensure a transparent and functioning market for all. In the meantime, we’re here to support our partners by sharing the latest insights and intelligence available and for consumers through the content and experience on our platforms.    That’s why today we have hosted a webinar with the very best experts from Eversheds Sutherland, Finance & Leasing Association and Auxillias who took us through the details of what the rulings mean for the #automotiveindustry. You can watch the webinar on demand here: https://lnkd.in/eeFNmT8n. With more than 2,000 people on the webinar and many others already registered, we obviously couldn't get to all the questions raised live, but we'll be sure to respond to all of them as well as to continue to keep you updated on the latest developments on our live blog here: https://lnkd.in/e8YF63Wn Adrian Dally, Joanne Davis, Martin Ward, Marc Thornborough, James Standing, Rachael Jones

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This week's Society of Motor Manufacturers and Traders (SMMT) Transport News Brief lead comment, Data shows robust UK commercial vehicle output at half year point New data on commercial vehicle production in the first six months of 2024 show some normalisation following UK manufacturers’ rapid post-pandemic recovery last year, with more than 11,500 vans, trucks, taxis, buses and coaches leaving Britain’s factories since January. With volumes just -2.9% below a really strong performance during the same period in 2023, the sector is in good health. Indeed, 2024 to date is a third above the sector’s pre-pandemic five-year output average. This positive position has been forged thanks to long-term OEM investment in and global demand for the high quality products being made here. More than two thirds of all UK-built products have been exported so far this year and, given plants are set to ramp up zero emission vehicle output in 2025 amid rising demand in our major markets, our industry is futureproofing for greener growth. The latest independent industry outlook brings cause for us to be optimistic, with light CV production expected to grow to 110,000 units this year and then above 130,000 in 2030 given the right economic and trading conditions. Positively, just as manufacturers are investing in decarbonisation, new political leaders are providing bus operators in particular with encouragement to place orders. Hot on the heels of the UK’s proposed Better Buses Bill, Scottish First Minister John Swinney announced government backing for an innovative bus and coach consortium, along with nationwide charging network – not just for buses and coaches but heavy goods vehicles too. The investment comes under the Scottish Zero Emission Bus Challenge Fund but underlines the potential for shared infrastructure solutions involving all heavy vehicles, given their power and size requirements are not too dissimilar. As SMMT’s two recent papers on bus and truck decarbonisation show, growing green uptake requires joined-up, long-term plans for a national electric charging and hydrogen fuelling network, supporting all heavy vehicles at en-route locations, depots and shared hubs. When political support is suitably ambitious, the commercial vehicle industry is ready to deliver. Bus decarbonisation paper: https://lnkd.in/g9-Ydcbx HGV Decarbonisation paper: https://lnkd.in/eYQbKwyX

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Used car prices RISE in September as EVs lead the charge with 1% surge, according to latest date from Cap HPI. – Used car prices go up for all fuel types in September – Strong and stable used car market continues  – First time used EV prices have risen in two years Watch our video interview with Derren Martin in the post below https://lnkd.in/evqKjH_e

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Interesting article based on research from Goldman Sacks showing EV battery prices are falling dramatically at the moment, and look set to continue to do so. Much of the reduction is based on raw material prices, with lithium down 70% this year. https://ow.ly/UjuH50SVzkm #Startlinemotorfinance #motorfinance #dealers #dealership #autoretail #motorindustry #EVs

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