11:40 am, January 16, 2023
Cox Automotive has backed the motor trade to make a ‘tentative’ recovery in 2023 despite continued struggles with new vehicle supply.
Bosses at the firm say the industry is likely to be impacted several key factors in the coming 12 months, including the burgeoning transition to EVs and a number new market entrants.
They are also expecting various agency models to evolve between now and 2024, which could impact sales throughout Europe.
Last month, Ford boss Tim Slatty told Car Dealer that the firm was looking to adopt the model going forward but Renault recently ruled out a switch.
Despite signs of a recovery for vehicle manufacturing, Cox Automotive does not see a return to pre-pandemic levels of production.
It says there has been a ‘notable shift’ in how consumers are accessing vehicles, as well as the types of vehicles that are in demand.
Experts from the firm believe there is likely to be a continued preference towards affordable used cars as new vehicles become out of reach for many.
It is a similar opinion to the one expressed by Vertu boss Robert Forrester on BBC Radio 4 this morning (Monday).
Elsewhere, Cox has predicted that manufacturers will continue to prioritise EVs, despite dampening consumer confidence and rising raw material costs.
Specialists also believe that hydrogen vehicle production is likely to remain ‘on the fringes’.
‘Glass-half-full mentality’ needed to achieve ‘valley of opportunity’
The topic of agency sales is one that has been at the forefront of dealers’ minds for some time now.
Cox believes that the ‘landscape of the dealership is changing’ but says consumers should notice little change.
Phillip Nothard, insight and strategy director at Cox Automotive, believes the industry should adopt a ‘glass-half-full mentality’ to make the most of what 2023 has to offer.
He said: ‘It has been debated whether our industry has arrived at a Valley of Death regarding manufacturing.
‘It would be correct that overall sales – and therefore production – have dropped off a cliff compared to pre-pandemic levels, but we should not be so pessimistic.
‘Instead, we should look at the opportunities presented to us within the automotive industry and the forced development resulting from Covid-19.
‘We are in a situation where it is no longer viable to attempt to maintain the success of the pre-pandemic automotive industry.
‘But, as well as uncertainty, plenty of opportunities come afoot with this. We need to have a glass-half-full mentality. We’re in a valley of opportunity, and 2023 could be a critical year for reaching new horizons.’
Main image: Phillip Nothard, insight and strategy director at Cox Automotive
Car Dealer Live – the future of the car dealer – exclusive conference features talks from leading car dealers, Google and Auto Trader among much more. Find out the full event details and book tickets.
