UK New Car Sales Hit the Brakes: A-Level Business In The News

Have a go at this teaching activity, which includes a downloadable worksheet and suggested answers.

What's the story?

UK new car sales drop, reflecting ongoing challenges for European automobile industry.

The UK auto industry is facing significant challenges, as evidenced by a slight decline in new car sales in August compared to the previous year. 85,575 new cars were sold in August, a decrease of 1.3% on the same period in 2023.

While electric vehicle (EV) sales saw an increase due to heavy discounting, overall demand remains weak.

European car manufacturers are struggling with competitiveness issues, particularly against cheaper Chinese EVs. High energy costs and wages contribute to this problem, prompting the EU to impose tariffs on Chinese-made EVs. Consumer hesitation regarding the range and charging infrastructure for EVs further complicates the transition to electric mobility.

The industry is calling for increased government support to encourage EV adoption and address affordability concerns.

Volvo has delayed its commitment to phase out internal combustion engines, citing slow charging infrastructure development and reduced purchase incentives.

Volkswagen, which has the highest revenue of any European car maker, is considering drastic measures, including potential plant closures, to navigate the shift to EVs and address reduced demand. This has led to tensions with unions, who are prepared to fight job cuts.

UK car sales hit the brakes