Nearly two thirds (62%) of UK dealers believe EVs are the biggest challenge to their business, according to data from Startline Motor Finance.
February’s Startline Used Car Tracker, which polled 58 dealers, shows that the feeling of challenge around EVs has jumped up from 45% in December.
Other rising concerns include a reduction in desire for car ownership (now 33%, up from 28% in December) and staffing costs (now 28%, up from 24%).
Paul Burgess, Startline Motor Finance chief executive, said: “It’s not easy to say why dealers have suddenly become more negative about electrification after a gradual improvement in sentiment over quite a long period in our Tracker research.
“However, our guess is that the ZEV mandate consultation and a range of other news such as the closure of the Stellantis plant in Luton have had a negative impact.
“We’re in an odd moment where electric car adoption is increasing quite quickly in both the new and used sectors but the mood music around them feels sometimes uneasy.”
Burgess said the increase in concerns around staffing is more easily explained.
The higher rate of employer National Insurance announced in the Budget will take effect soon and Burgess said he knows anecdotally that dealers are unhappy about that change.
However, worries over a range of other issues seem to be reducing including finance availability (now 48%, down from 50% in December), compliance (48%, down from 57%), stock shortages (45%, down from 48%), premises costs (19%, down from 29%).
Burgess said: “While few of these changes are substantial month-on-month, they do suggest a slight lightening of their mood in some areas where dealers have held longstanding concerns.
“It’s especially interesting to see a big fall in worries over premises costs, where rates, rent and running costs have been rising for some time.”