The National Franchised Dealers Association (NFDA) has unveiled the results of its 2025 Outlook Survey, painting a challenging picture for the UK’s automotive retail sector. Conducted between 10 and 24 January 2025, the survey gathered responses from 46 franchised dealership groups representing approximately 165 sites nationwide. According to the findings, dealers are calling for stronger government intervention to support the transition to electric vehicles (EVs) and alleviate mounting financial pressures. The industry remains deeply concerned about high running costs, uncertainty surrounding the Zero Emission Vehicle (ZEV) mandate, and a sluggish market outlook for the year ahead. Key Takeaways: Government Support Needed : Dealers emphasised the importance of government incentives such as grants and investment in charging infrastructure to accelerate EV adoption. Many also highlighted the continued relevance of hybrid vehicles beyond 2030. EV Adoption Barriers : Cost remains a significant hurdle, with 87% of respondents identifying it as a key reason consumers hesitate to purchase an EV—tied with ‘anxiety around lack of chargers’, also at 87%. This aligns with NFDA’s 2024 Consumer Attitude Survey, where price concerns topped the list of consumer objections. Market Pessimism : The outlook for 2025 appears bleak, with 71% of dealers describing their sentiment as ‘pessimistic.’ Only 29% reported feeling ‘slightly optimistic’ about trading conditions this year. Rising Costs a Top Concern : Dealers ranked ‘running costs’—including business rates and Employers’ National Insurance—as the most pressing issue (52%). This is followed by the ZEV mandate (31%) and charging infrastructure (34%). The increase in Employers’ National Insurance from 13.8% to 15% in April 2025, along with the upcoming introduction of Vehicle Excise Duty on EVs, has heightened financial concerns. Increased EV Discounts : In an effort to stimulate demand, 50% of respondents reported a dramatic increase in EV discounts over the past six months. Additionally, 57% confirmed they are offering incentives such as free home charger installations. NFDA Chief Executive Sue Robinson underscored the significance of these findings, stating: “With the Government currently consulting on the phase-out date and ZEV mandate, dealers are calling for stronger support. Key issues, including grants, investment in charging infrastructure, and the role of hybrids beyond 2030, will be highlighted in NFDA’s response to the consultation.” She added: “The overall trading environment in 2025 is shaping up to be challenging, and it is crucial that the Government listens to the concerns of the sector. The automotive industry remains vital to the UK economy, and NFDA will continue to advocate on behalf of our members throughout the year.” Find the full press release here: NFDA | NFDA 2025 OUTLOOK SURVEY: DEALERS URGE MORE GOVERNMENT SUPPORT…