upply of electric vehicles is comfortably outstripping demand even despite the expansion of ULEZ, car dealership Vertu Motors has revealed.
The dealership chain, with 189 sales and aftersales outlets including a number in the London commuter belt, said that improved sales of new cars helped it ensure profit this year should be in line with expectations.
However, when it came to electric vehicles, it said supply had ballooned in a way that did not match demand, causing many manufacturers to cut prices.
“Recent increased supply of new electric vehicles appears to be exceeding retail demand, creating an imbalance in pipeline inventory coming into the key plate change month of September,” it said. “Manufacturers are reacting to this through the offer of discounted prices and supported finance rates to stimulate retail demand.
“Fleet sector demand for electric vehicles remains robust and is currently critical to the electrification of the vehicle parc”
Tesla, which does not sell via dealerships, has been among the high-profile EV makers to have cut prices lately, with the cost of many of its models being slashed on multiple occasions
Robert Forrester, Chief Executive Officer of Vertu Motors, said: “I am pleased to report that trading remains positive. The entire Vertu team has put in hard work and dedication once again, and I would like to thank them all. Used car pricing has remained firm and we have gained market share in the new car market. The performance of our high margin aftersales business has remained strong.
“The integration of Helston Garages remains on track to deliver the planned synergies. The board remains optimistic for the future, we anticipate that full year results will be in line with current market expectations, and we are excited about the opportunities our enlarged portfolio will create for Vertu Motors.”