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NFDA 2025 OUTLOOK SURVEY: DEALERS URGE MORE GOVERNMENT SUPPORT AMID PESSIMISTIC MARKET OUTLOOK

NFDA 31/01/2025

From 10 to 24 January 2025, the National Franchised Dealers Association (NFDA) surveyed its members to seek dealer opinions on pertinent topics and their outlook for 2025*. The survey received 46 responses from various franchised dealership groups across the UK, representing a total of approximately 165 sites.

NFDA’s 2025 Outlook Survey offers valuable insights into the challenges expected in the year ahead while also reflecting on key metrics from 2024, such as footfall, and dealer sentiment regarding the overall trading environment” said Sue Robinson, Chief Executive of the National Franchised Dealers Association which represents car and commercial retailers across the UK.

Key takeaways:

  • Amid the ongoing government consultation on the phase-out date and ZEV mandate, many dealers highlighted in the survey the need for government support, including incentives such as grants and investments in charging infrastructure. They also stressed the continued benefits of hybrids beyond 2030.
  • In a multiple-choice question, 87% of respondents identified ‘cost’ as one of the most prevalent reasons customers are giving for not considering purchasing an electric vehicle (EV), tied with ‘anxiety around lack of chargers’ (also 87%). This has been a recurring concern, with consumers in NFDA’s 2024 Consumer Attitude Survey citing the high cost of EVs as the main reason for not considering an electric vehicle.
  • Overall, dealers expressed a bleak outlook for 2025, with 71% selecting ‘pessimistic’ in response to how they view the overall trading environment for the year ahead, while 29% were ‘slightly optimistic.’
  • ‘Running costs’, which include business rates and Employers’ National Insurance, was ranked as the most important issue in 2025 with 52% ranking it as their top choice. This was followed by the ‘ZEV mandate’ (31% ranking it as their second choice) and ‘charging infrastructure’ (34% ranking it as their third choice). This view is expected, given the upcoming rise in Employers’ National Insurance contributions from 13.8% to 15% in April 2025, alongside the ongoing government consultation on the phase-out date/ZEV mandate.
  • 50% of respondents noted that the number of discounts offered on EVs have ‘increased dramatically’ in the past six months, while 57% confirm they have offered incentives to customers such as free charger installation.

“The transition to EVs is a generational shift for the industry and NFDA members are supportive of the decarbonisation of transport. With the Government currently consulting on the phase-out date/ZEV mandate, dealers are calling for stronger support, including grants and investment in charging infrastructure, key issues which NFDA have repeatedly advocated on. The advantages of hybrids beyond 2030, along with these insights, will be highlighted in NFDA’s response to the consultation.

“Many dealers have expressed a pessimistic outlook with the overall trading environment in 2025 amid what is shaping up to be a challenging period for the industry. It is crucial that the Government listens to the concerns of the sector, with several key issues at stake, including the increase in Employers’ National Insurance and the introduction of Vehicle Excise Duty for electric vehicles starting in April.

“The UK automotive sector is a vital sector in the UK and historically NFDA members have been very flexible and resilient to headwinds. This will continue as we help our members navigate the current operating environment and NFDA will maintain its lobbying efforts with the government on all these critical industry issues.”

*For the full survey, please contact Murat.Omercik@RMIF.co.uk

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About the RMI

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.