Blackswanwood wrote:RogerS wrote:Blackswanwood wrote:UBS released some research a few weeks ago which predicted that the cost of manufacture of an EV car will be the same as an ICE by 2024. My personal view is that cost parity will be the tipping point.
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But only relevant if you are in the market for a new car. Which, I suggest, for those of us not having company cars is less than 0.00001% of the population. Or you're a Motability customer.
I don’t think that is the case Roger. Over the last ten years there has been a trend which is now accelerating further to move away from company cars (most of which were perk cars rather than essential vehicles). The insurance market has seen a shift in the volume of cars insured on motor fleet policies to individual policies as a consequence. The personal finance market for cars has also grown significantly.
One other factor that will play a part is banks responding to public sentiment and government policy to support environmentally responsible lending. If the cost of finance to produce petrol, build or upgrade the factory for a plant to produce ICE cars, run the dealership and then finance the car goes up by 50bps compared to the EV value chain it’s a game changer.
Cheers
Up here in the North, pre-Covid and when, if you remember, the car industry was going through a really bad patch with garages closing left, right and centre, my mate (who is fairly senior in Motability) worked out that they were responsible for something like 75% of all new car registrations.