The motor trade is starting to see ‘green shoots of recovery’ after an incredibly ‘disrupted’ period, Cox Automotive has said.
The firm has today (July 13) released its quarterly insight roundup, AutoFocus, which brings together the latest views of a panel of experts.
The group concluded that the long-term outlook for the industry is positive, with the sector showing small signs of recovery.
Within the short to medium term, it expects to see small numbers of new and used vehicles enter the market as supply chain issues continue to case headaches.
It also says that questions remain surrounding the agency model but answers could be just around the corner.
Cox also said it expects the industry to adapt to rapid growth seen in the EV market.
Philip Nothard, insight and strategy director at Cox Automotive, said: ‘Although we can always find reasons to be negative, we know there are green shoots of recovery appearing across the market.
‘However, there remains a number of complex challenges to navigate before we are to see a full recovery.
‘The production of new vehicles, while improving for some manufacturers, is still a long way off from where it needs to be. Some 31 million fewer vehicles were produced globally in 2020 and 2021 compared to the previous two years.
‘In the latest AutoFocus, we discuss the impact this is having on forecasts for new vehicle volumes and where we go from here.
‘We must then consider the impact this shortage is having on the used market. Having risen dramatically over the last two years, used vehicle prices are plateauing and, in some cases, declining. Again, our revised used car forecast explores this in greater detail.’