Vertu sees solid Q1 growth, but ZEV mandate raises uncertainty

However, the company said that while used car pricing has remained stable, the government's Zero Emission Mandate – whereby manufacturers are required sell a certain percentage of electric vehicles each year – "has the potential to create volatility in the new car market".

The ZEV states that 22% of new car sales must be zero-emissions vehicles in 2024, rising to 80% by 2030.

"This [volatility] may include reduced supply of new petrol and diesel cars in the coming periods and would lead to a strengthening of petrol and diesel used car values," Vertu said in a statement.

For the first quarter ended 31 May, in like-for-like terms, new car retail and Motability volumes were up 6.8%, though new vehicle margins fell to 7.4% from 8.1% as a result of product mix and increased discounting.

Fleet and commercial LFL volumes were up 6.4% on last year, while used vehicle LFL volumes rose 6.7%. LFL services revenues were up 10.1%.

"I am pleased to report that trading remains positive," said chief executive Robert Forrester.

"Used car pricing has remained stable and we have gained market share in the new retail and Motability car market and delivered strong like-for-like volume growth in used vehicles. The performance of our high margin aftersales business has remained strong."