Paragon’s recent Headlight Survey, has revealed that 72% of the UK’s largest motor finance brokers feel uncertainty over diesel policy is having an impact on the market.
The market jitters have follwed on from the Government announcement of plans to ban sales of new petrol and diesel vehicles in the UK by 2040, with local authorities in the worst effected areas tasted to produce action plans by the end of 2018.
In response to market and air quality problems 56% of brokers said that electric car infrastructure should be improved, with 48% stating there should be greater support for alternatively fuelled vehicles. Diesel’s decline is expected to be to hybrid and electric vehicles’ benefit. 67% of brokers expect a ‘few more’ electric sales over the coming 12 months, while 13% expect a significant increase. 38% expect moderate growth in the hybrid market and a further 38% expect significant growth.
Julian Rance, Director of motor finance at Paragon, said: “In order to achieve a smooth transition towards alternatively fuelled vehicles, policy makers, manufacturers, infrastructure providers and lenders should work together to develop a more detailed timeline.
“Today’s Euro 6 diesel engines are in fact cleaner than many petrol vehicles so the blanket ban on fossil fuel vehicles by 2040 should be supported by interim targets to gradually phase out the most polluting models. Greater insight into new and developing engine technologies, together with clear plans to build out the supporting infrastructure for alternatively fuelled vehicles are also required.”
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