7:23 am, August 21, 2022
Cox Automotive has urged a more cautious, data-driven approach to forecasting as dealers gear up for a challenging second half of the year.
The firm is expecting the second six months of 2022 to be tough for retailers, as the market continues to be driven by uncertainty around new car supply and tougher economic conditions.
As a result, experts are warning those within the industry to braces themselves for further headwinds throughout the remainder of the year.
Philip Nothard, insight & strategy director at Cox Automotive, recommends that dealers should base future strategic decisions-on credible third-party data and insights to help their businesses navigate these challenges in an increasingly volatile market.
He said: ‘The accuracy of our forecasts reflects the sheer amount of work that goes into analysing market trends to provide our customers with a reliable picture of the market.
‘Our track record means customers can take confidence in our insights, which are driven by our access to essential macroeconomic, financial and market data.’
Cox Automotive released its full-year forecast in July 2022 within its AutoFocus publication.
However, it has since downgraded its forecast based on continual headwinds influencing the industry, including the publication of H1 market data, the Bank of England’s interest rate hike, and declining consumer confidence figures.
The baseline scenario of 6.74m will result in a 10.5 per cent decrease year-on-year and a 4.4 per cent downgrade.
Nothard added: ‘Our forecasts from last month reflect the current pace of change within the market and the ongoing volatility.
‘Monitoring data in real-time and adjusting our forecasts accordingly allows us to provide greater accuracy to the sector, enabling customers to make better decisions based on the latest insights.
‘Predicting the future is never easy; however, we’re committed to providing accurate figures as much as possible, and our data-led approach should inspire confidence when the market is facing increased uncertainty.’
Pictured: Philip Nothard
