Home Money RAY MASSEY: Car industry reaction to government edicts mirrors Oasis ticket frenzy

RAY MASSEY: Car industry reaction to government edicts mirrors Oasis ticket frenzy

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Mad about it: The furore over rising Oasis concert ticket prices should teach government ministers how their interventions can have unintended consequences

The furore over the rise in ticket prices for Oasis concerts should teach government ministers how their interventions can have unintended consequences.

That is, when there is a high demand for a product in limited supply (such as fans wanting to see Noel and Liam Gallagher), prices go up.

Under the Government’s “ZEV Mandate” on zero-emission vehicles, carmakers are being told that 22 per cent of cars sold this year must be electric (with this percentage rising to 80 per cent by 2030) or face fines of £15,000 per car.

Mad about it: The furore over rising Oasis concert ticket prices should teach government ministers how their interventions can have unintended consequences

As a result, automakers are now reducing or rationing supply of in-demand hybrid and gasoline cars.

Robert Forrester, chief executive of Vertu Motors, said this week: “It’s almost as if we can’t supply the cars that people want.”

Renault 5 crowned

Meanwhile, the new all-electric Renault 5 has been crowned world champion at the annual Best Car of the Year awards (bestcarsoftheyear.com).

Ahead of its launch at next month’s Paris motor show, it was also named best electric car by an international jury and by votes from visitors to the recent British Motor Show in Farnborough, where the contenders were on display.

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CARS AND MOTORING: TEST

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