Car dealer Vertu Motors hailed the decision to delay the ban on petrol cars but said manufacturer targets for electric vehicle (EV) sales are ‘confusing’.
Prime Minister Rishi Sunak last month pushed back the plan to block the sale of new fossil fuel-powered motors from 2030 to 2035.
But manufacturers must still meet targets on electric car and van sales.
Supply of electric cars already outweighs demand, Vertu said, meaning manufacturers may have to offer discounts.
‘The Government has taken a pragmatic approach to row back from an all-out ban until 2035,’ said the chain, which owns 190 sites in the UK.
Prime Minister Rishi Sunak last month pushed back the plan to block the sale of new fossil fuel-powered motors from 2030 to 2035
But manufacturers will be forced to meet the zero emissions vehicles mandate, which will come into effect in January, or risk being fined.
Under the mandate, electric vehicle sales must make up 22 per cent of total car sales and 10 per cent of van sales by 2024. The target will increase each year.
‘Increased supply of new electric vehicles from manufacturers is evident whilst retail demand remains muted,’ Vertu said in its first-half results statement.
It added: ‘Manufacturers are therefore seeking to stimulate retail demand for these vehicles through the offer of discounted prices and supported finance rates.
‘The Government’s confusing messaging may further contribute to this.’
Vertu reported record revenues of £2.42billion, with profit before tax of £31.5million.
