Let's Talk Leasing - Graham Thompson

We asked our Managing Director Graham a few questions about the future of leasing and what he thinks will be the challenges to come, how the market looks for leasing EVs and what will happen to the sale of petrol and diesel vehicles.

What are the future challenges for the automotive industry?

The motor industry is currently facing a major supply chain shortage, that is set to continue through 2023, however there are some signs of easing in recent months. The shortage is being caused by a combination of different factors, including increased demand for vehicles from the COVID-19 pandemic and lockdowns, disruption on global trade routes and shipping lanes and supply chain bottlenecks, including everything from shortages of raw materials to problems with logistics and transportation. Manufacturers are struggling to keep up with demand and many are having to delay production or cut back on their output, ultimately resulting in higher prices for consumers and a shortage of vehicles in the market.

How is the market in relation to EV sales?

Sales within the electric vehicle market increased by 40% in 2022 with 1 in 10 new vehicles being electric and this growth is not expected to stop any time soon. At Agnew Leasing, just over 12% of our live car fleet is EV with 25% of our car order bank being EV, so it is clear to see how this will increase significantly, even in the next 12 months. More and more car manufacturers are joining the market at a fast pace with some in the process of going entirely electric. Battery technology will improve, and costs are expected to continue to decrease, which should be good news, coupled with government incentives, will make EV’s more accessible to a wider range of consumers. Overall, the EV market is expected to see significant growth in 2023, with advances in technology and a further focus on infrastructure. The main goal being to make it as convenient, practical and cost effective as possible to own and EV.

What will happen to the sale of petrol and diesel cars come 2030?

By 2030, sales of new petrol and diesel cars will be stopped in the United Kingdom. This had originally been due to happen by 2040, but the date has since been brought forward by ten years. Put simply, the proposed ban means that no new petrol or diesel cars will be sold in the UK past 2030 with new hybrids being given a stay of execution until 2035 on the condition their zero-emission-mode can cover a significant distance, although this distance hasn’t been set by the government yet. The ban will not affect the sale of second-hand vehicles. So you can see why there is such a surge in the manufacturing of EV product and the development of the infrastructure to satisfy this demand.

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