No-deal Brexit could add £1,900 to the average cost of car
After several months on the backburner, guess what’s back with a vengeance?
That’s right: Brexit.
As the clock ticks down towards the end of the year and the prospect of ‘No Deal’, politicians, economists, civil servants, as well as a whole raft of others are crunching the numbers to understand exactly what the state of play would be if Britain exited without a deal.
And according to the Society of Motor Manufacturers and Traders (SMMT), a no-deal Brexit would add 10% to the cost of new cars imported from the EU.
Electric cars aren’t immune in those figures either – because they’re currently more expensive to produce thanks to the battery costs, electric cars and vans are likely to cost an average of £2,800 more per vehicle.
Which isn’t exactly chump change, and could spell trouble at a time when our country (and much of the world) is trying to eliminate the traditional combustion engine, and move towards full electric models, with the 2030 ban now looming very large indeed.
And I’m afraid that when it rains, it pours – it’s thought that even if a deal is reached, higher tariffs will be introduced.
Plus, thanks to an impasse on the subject of what counts as British (with Japanese imported parts not able to be counted as British products, for example), the Japanese car factories in Sunderland, Burnaston and Deeside are likely to be disadvantaged
I guess the big question for fleet operators now is:
To what extent is Brexit playing a role in your plans for the following months and years? Does this new information impact your goals for net zero?
We'd love to know, so comment below and let us know.