Key facts
- Electric vehicle sales have more than doubled in recent months, according to Motorpoint.
- Oil price volatility, linked to the war in Iran, has significantly reduced demand for petrol and diesel cars.
- Chinese car brands, including BYD and MG, are central to the surge in EV demand.
- Motorpoint reported an 8.1% increase in turnover to £1.3bn and a near doubling of pre-tax profit to £7.5m.
- Motorpoint plans to expand its operations by opening nine new locations.
Brits are rapidly adopting electric vehicles (EVs) as oil price volatility, exacerbated by the conflict in Iran, diminishes demand for traditional petrol and diesel cars. Motorpoint, a major UK used car retailer, has reported a more than doubling of EV sales in recent months, calling it a "watershed moment" for the automotive industry.
Motorpoint CEO Mark Carpenter stated that the oil price shock has been a catalyst, pushing consumers over the tipping point to switch to EVs, with demand now exceeding supply. He noted that Chinese manufacturers are playing a significant role, with BYD sales surpassing Land Rovers and MG sales exceeding Mercedes. The Jaecoo 7 was the UK's top-selling car in March.
Financially, Motorpoint posted an 8.1% increase in turnover to £1.3bn and nearly doubled its pre-tax profit to £7.5m for the year ending March. The company also raised its final dividend by 20% to 1.2p and plans to open nine new locations. Carpenter attributed the company's outperformance to its easy car-buying proposition and the enhanced use of AI and data analytics.
Motorpoint shares saw an early trade increase of up to 7% to 135p on Wednesday.