The latest news from Atradius for you;
One of the UK’s largest trade credit insurers has issued a red flag to the motor industry as new data reveals a sharp rise in claims for unpaid and late invoices.
Failed and late payment claims against automotive businesses – including OEMs, original equipment manufacturers, component manufacturers and dealerships – rose 78% year-on-year (Nov 2025).
Claims across the wider transport sector, covering rental firms, fleet operators, and logistics providers, increased by 64%.
These rises reflect a growing number of businesses delaying payments to suppliers and service partners, an early signal of cash-flow stress that predates the busy spring vehicle sales season.
The alarm bells coincide with broader market disruption, including the growing entry of China’s electric vehicle brands into the UK market. Brands such as Nio, Aion and Zeekr are set to launch in the UK in 2026, and Chinese automakers doubled their UK market share to 10% in 2025, with 18% of new car registrations in December alone.
This intensifying competition is placing downward pressure on dealership margins, fleet resale values, and component supply chains, translating to cash-flow issues on the ground.
Notable closures in 2025 include luxury supercar dealer Targa Florio Cars, a family‑run Volkswagen dealer in Doncaster, and several sites from major groups such as Vertu Motors. At the same time, rental and fleet operators – including companies like Zipcar, which has recently announced it will cease UK operations – are increasingly exposed to residual value volatility and financing pressures, risks that could amplify broader sector challenges.
Nicola Harris, Senior Risk Underwriter at Atradius, says:
“What we’re seeing is the financial strain of a sector being reshaped in real time. Late payment claims are rising sharply across automotive and transport, reflecting mounting pressure on margins, asset values and liquidity.
As new Chinese EV brands prepare to enter the UK at scale, competition is accelerating faster than many balance sheets can absorb. For suppliers, dealers and fleet operators alike, unpaid invoices are an early warning that cash-flow resilience is being tested – making it critical that businesses have the right protection in place to safeguard revenue as the market continues to shift.”
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