Electric vehicle surplus persists despite Ulez expansion, according to Vertu dealership.

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【Summary】Supply of electric vehicles is exceeding demand, causing manufacturers to cut prices. Despite the expansion of ULEZ, dealership Vertu Motors says that the increased supply is not matching retail demand. Fleet sector demand for electric vehicles remains strong. Tesla has recently cut prices on its models. Vertu Motors expects its profit this year to be in line with expectations.

FutureCar Staff Aug 30, 2023 11:23 PM PT

Electric vehicle surplus persists despite Ulez expansion, according to Vertu dealership.

Tesla, the high-profile electric vehicle maker, has recently cut prices on many of its models as supply of electric vehicles exceeds demand, according to car dealership Vertu Motors. The dealership chain, with numerous sales outlets including some in the London commuter belt, has seen improved sales of new cars, which has helped ensure that its profit for this year will meet expectations. However, when it comes to electric vehicles, the supply has grown significantly without a matching increase in demand, leading manufacturers to reduce prices. In response, manufacturers are offering discounted prices and supported finance rates to stimulate retail demand.

Vertu Motors stated, "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. Fleet sector demand for electric vehicles remains robust and is currently critical to the electrification of the vehicle parc."

Robert Forrester, CEO of Vertu Motors, expressed his satisfaction with the positive trading, attributing it to the hard work and dedication of the entire Vertu team. He noted that used car pricing has remained firm and the company has gained market share in the new car market. The performance of their high-margin aftersales business has also remained strong. Forrester further mentioned that the integration of Helston Garages is progressing as planned and is expected to deliver the anticipated synergies. The board remains optimistic for the future and expects the full year results to be in line with current market expectations. They are excited about the opportunities that their enlarged portfolio will create for Vertu Motors.