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The cost of running a business has emerged as the most pressing issue for dealers in a survey carried out by trade body the National Franchised Dealers Association (NFDA)
Overall, dealers expressed a bleak outlook for 2025, with 71% selecting ‘pessimistic’ in response to how they view the overall trading environment for the year ahead
Running costs, which include business rates and Employers’ National Insurance, was ranked as the most important issue in 2025 with 52% ranking it as their top choice.
This was followed by the ‘ZEV mandate’ (31% ranking it as their second choice) and ‘charging infrastructure’ (34% ranking it as their third choice).
The ranking of running costs in top position was expected, given Budget hike in Employers’ National Insurance contributions from 13.8% to 15% in April 2025, which comes into being in April.
Amid the ongoing government consultation on the phase-out date and ZEV mandate, many dealers highlighted in the survey the need for government support, including incentives such as grants and investments in charging infrastructure. They also stressed the continued benefits of hybrids beyond 2030.
“Many dealers have expressed a pessimistic outlook with the overall trading environment in 2025 amid what is shaping up to be a challenging period for the industry.
It is crucial that the Government listens to the concerns of the sector, with several key issues at stake, including the increase in Employers’ National Insurance and the introduction of Vehicle Excise Duty for electric vehicles starting in April.
