Manchester 0161 980 0577
London 020 3301 4540


Archive for 2022

Automative Industry Insight

Monday, April 25th, 2022


The automotive industry is a vital part of the UK economy, involving the design, manufacturing, selling and maintenance of motor vehicles. The industry has an annual turnover Of €74 billion, with vehicle exports worth E27 billion.

Around 80% of cars manufactured in Britain are exported, and the EU is the UK’s largest trading partner accounting for more than half of all vehicle exports. Covid-19 has had a significant impact on the industry, with growth in sales, output and servicing down since the start of the pandemic.

However, demand is expected to recover in 2022/23.

• Turnover in 2020 was E74bn, down 6.2% on 2019.
• There were 44, 500 vehicle maintenance businesses in 2020, down 3.7% on 2019
• There was a 6.7% fall in UK car production in 2021
• 1.6 million new car sales in 2021, down 36% on 2017
• 452,527 electric vehicle sales in 2021, up 58.7% on 2020
• 11.5% increase in used car sales year-on-year in 2021

Sales forecasts cut

The automotive industry has cut vehicle sales forecasts for 2022 due to rising interest rates, component shortages and higher costs. While vehicle sales are forecast to increase by 15% year-on-year in 2022, this is 18% below pre-pandemic levels. Demand for used cars is expected to remain strong in 2022, as shortages of key components such as chips and semiconductors will continue to impact new car supply.

Export barriers

Industry experts have warned that the introduction of new customs and export rules in January 2022 could slow growth in the UK electric vehicle sector. Some cars assembled in the UK will not qualify for tariff-free export to the EU due to how components essential for electric vehicles, such as batteries, are sourced. As a result, the automotive industry has called for export rules to be reformed so zero emission vehicles can be exported globally.

Advertising automated vehicles

The automotive industry has agreed a set of principles for the responsible marketing of automated vehicles ahead of their expected introduction to British roads in 2022. The principles will ensure consumers have access to consistent and clear information about automated driving features. The principles have been backed by industry, Government and the Advertising Standards Authority.

Key bodies

Institute of the Motor Industry (IMI)

Society of Motor Manufacturers and Traders (SMMT)

Independent Carage Association (ICA)

Electric vehicle adoption

The automotive industry has warned that electric vehicle charging infrastructure must be improved if the UK is to meet zero emission targets and end the sale Of new petrol and diesel vehicles from 2030.

Currently, there are disparities in the number and cost of charging points across the UK. While some local authorities allow motorists to charge their batteries for free, other areas charge up to €4 per kilowatt hour.

Online car sales

Industry experts have urged traditional bricks and mortar dealerships to develop their online presence after Covid-19 accelerated the shift to buying cars online. The number of cars sold online has increased by more than 1,200% since the start of the pandemic.

Overall, 60% of motorists would now consider buying a car online. In addition, online spending on parts and aftermarket services reached El.5 billion in 2021, up 46.1% on 2017.

Electric vehicle technician shortage

The automotive industry is calling for measures to tackle a significant shortage of electric vehicle
technicians. Overall, 90,000 technicians will be required to service the number of electric vehicles predicted to be on the road by 2030. Based on current training levels, this means there could be a shortage of 35,700 electric vehicle technicians by 2030 and a skills gap will materialise by 2026.

Information for this Industry Report was sourced from:
SMMT: UK Automotive Trade Report 2021, SMMT: Motor Industry Facts 2021, UK Parliament: Electric Vehicles and Infrastructure Report

Spread the cost of your Tax bills

Thursday, March 3rd, 2022

You can spread the cost of your HMRC Self-Assessment tax bill, Corporation Tax or VAT bills using a easy to arrange solution that will ease any pressure on your cashflow.

Key advantages of financing your tax bill:

  • Competitive cost – a fixed transaction fee is added to your finance agreement and spread throughout your repayment term
  • Simple application process without the need for supporting projections or complex application forms
  • New, unsecured line of credit with no assets charged as security – existing funding lines are not impacted
  • Preserve you your cash flow and maintain working capital for other areas of your business
  • Flexible repayments – spread the repayments over 6, 10 or 12 months to suit your budget, with an option for reimbursement if you have already paid HMRC in full

Contact us to find out more


Sovereign House,
Stockport Road,
Cheshire SK8 2EA

How to make a complaint | Privacy Policy

0161 980 0577

020 3301 4540

XL Business Finance Limited are authorised and regulated by the Financial Conduct Authority FRN 718737

Get A Quote

Get in touch by filling in the form below. One of our finance experts will get back to you as soon as possible.

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.