UK new car market set for pressures likened to 2008 economic crash

The new car market will be hit with challenges and pressures at the end of 2024 that will be  reminiscent of, or may even surpass, those felt during the economic crash of 2008 and the pandemic in 2020, a new report claims. This will be down to the volatility created in the quarter by the ZEV mandate – the new law which demands a percentage (22% in 2024) of car makers' total sales be EVs – with manufacturers making strategic and tactical plays so as to hit the government's legislative target. This may come in the form of restricting ICE and PHEV sales and “aggressively” pushing EV stock into fleets as long called-for government-backed incentives are still yet to materialise. Related articles Predicted as part of Cox Automotive’s new car forecast, the firm warns this could create “an unrealistic and unnatural market” with long-term ramifications such as lower manufacturer and dealer profitability, less consumer choice and a hit on residual values.