Hyundai has become the latest manufacturer to reveal vehicle pricing plans ahead of a potential ‘no deal’ Brexit.
The carmaker has committed to protecting its vehicle prices on all orders taken ahead of on the transition period ending on December 31.
The price protection promise applies to both retail and fleet customers, as well as Hyundai Affinity buyers, and is valid on existing model year vehicles.
Motability vehicles will see price protection on advance payments for applications made in 2020, with the cars to be delivered in 2021, it said. Demonstrator vehicles are excluded.
“Our retailers have been enormously innovative and resilient during 2020, and we are doing what we can to support them,” said Ashley Andrew, managing director of Hyundai Motor UK.
“Having successfully navigated two national lockdown periods, the remainder of 2020 is a fruitful opportunity for our retailers and we don’t want the uncertainty of a no-deal Brexit to stand in the way of sales.
“This price protection promise will support our dealers this month while also reassuring our customers.”
A total of 23 industry bodies came together calling for an urgent free trade deal before the end of the transition period after calculating that a 'no deal' and the implementation of WTO tariffs could jeopardise the production of around three million EU and UK built vehicles over next five years.
The bodies said that a ‘no deal’ would result in a combined EU-UK trade losses worth up to €110bn (£101.5bn) to 2025, on top of around €100bn (£92.3bn) in lost production value so far this year because of coronavirus crisis.
If no deal is reached and ratified before December 31, World Trade Organisation (WTO) non-preferential rules, including a 10% tariff on cars and up to 22% on vans and trucks would apply.
That would equate to a price increase of almost £3,000 on the average UK exported car to the EU, a £2,000 price increase on UK vans exported to the EU and a price increase of £1,800 on cars and vans imported from the EU, if fully passed on to UK consumers, according to the SMMT.
It adds that additional customs duties, costs and complexity would significantly disrupt sourcing of parts and components from the EU.