Connect with us

Hi, what are you looking for?

Editor’s Pick

Electric car sales hit by inflation and energy prices

AutoTrader, the UK’s biggest marketplace to buy and sell cars, is starting to see signs that the cost of living squeeze and high electricity prices could be hurting electric vehicle sales.

Nathan Coe, chief executive of the online business, said yesterday there had been “some weakening”, which he put down to the price of EVs and consumers tightening their belts.

EVs have been one of the motor industry’s few bright spots, with recent figures from the Society of Motor Manufacturers and Traders, the industry body, showing huge growth in sales of both new and used cars.

Coe, unveiling the FTSE 100 company’s first-half numbers, which he said exceeded expectations, said the slowdown in EVs was not dramatic, but feedback from customers pointed to affordability and concerns about topping up with expensive electricity.

“Twelve months ago they were by far the fastest growth market. But demand has suffered a bit. Electric vehicles are not necessarily cheap,” he said. “If you combine range anxiety with the cost of electricity then it becomes an issue.”

In the six months to September 30 revenues rose 16 per cent to £249.8 million, with operating profits down 2 per cent to £149 million. Advertising from car dealers made up the majority of the £214.3 million income, with consumer advertising generating £18.7 million. Other revenue came from manufacturers and agencies.

Coe said general trading conditions at AutoTrader, a bellwether of market conditions, remained strong even though customers were seeing the cost of financing increase with interest rate rises. For many consumers, cars were not a discretionary spend, he said, so he did not see any signs of buying and selling on the site starting to soften.

The shortage of new cars due to supply chain issues was starting to ease, and that would drive further growth once shipping returns to normal.

“The used car market is far less cyclical than the new car market and new car registrations are expected to recover, currently being at their lowest level in 30 years. There’s a shortage of supply, but demand is high,” he said.

Peel Hunt analyst Jessica Pok’s verdict was that AutoTrader was proving “resilient against the challenging backdrop”. The shares, down 7.7 per cent so far this year, closed up by 3.1 per cent, or 17p, at 571p.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

BORONGAN City is holding the Surf in the City Festival from Nov. 26-Dec. 3 as it hosts the 3rd leg of this year’s national...

News

PHILIPPINE STAR/ MICHAEL VARCAS THE DEPARTMENT of Transportation (DoTr) on Thursday said it will consider new suppliers for public transport reloadable cards amid a...

News

LIONEL Messi of Argentina — REUTERS/JOEL MARKLUND DOHA — Lionel Messi missed a first-half penalty but Argentina’s Alexis Mac Allister and Julian Alvarez scored in a...

News

CREAMLINE Cool Smashers — PVL Games Tuesday(PhilSports Arena)2:30 p.m. — Chery Tiggo vs Creamline5:30 p.m. — Cignal vs Petro Gazz DENIED of a historic...

News

JUSTIN BROWNLEE — PBA MEDIA BARANGAY Ginebra resident import Justin Brownlee is excitedly counting the days until he can finally put on that Gilas...

News

KACEY dela Rosa (28) and Jhazmin Joson (15) — UAAP MEDIA AFTER an impressive campaign in UAAP Season 85 women’s basketball, Ateneo de Manila...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.