23 Jun 2020
Posted in Automotive
Pressure growing on UK Government for auto industry stimulus, says GlobalData
Following the news that the Society of Motor Manufacturers and Traders (SMMT), the trade body representing the auto industry in the UK, has called on the UK Government to introduce a dedicated package to kick-start the industry;
Calum MacRae, Automotive Analyst at GlobalData, a leading data and analytics company, offers his views;
“Financial incentives designed to encourage consumers to trade in their old vehicles for more environmentally friendly new vehicles have been introduced in a host of European countries. In the UK, too, they would lift retail activity, help get the industry back to work and provide a much needed boost for the UK economy.
“They could also be framed to encourage the sale of greener cars, helping UK companies active in emerging advanced technologies such as electrification.
“GlobalData’s current 2020 forecast for UK light vehicle sales is 1.84 million (some 31% down on 2019), a total predicated on some form of incentive being introduced to the market in the second half of the year.
“Given the uncertainty the sector is facing due to the possible imposition of World Trade Organisation (WTO) tariffs on trade in 2021, the seeming reluctance of the UK Government to support the industry grows more troubling by the day.”