Cox Automotive has issued a blistering report warning that the car market as we knew it, before the pandemic struck, may forever be a thing of the past. Various issues are combining to shift the sector, warns Cox Automotive, but director Philip Nothard says the industry must manage its transformation in order to meet the different needs of the customer.
Add together the illegal invasion of Ukraine with the long-term effects of Covid on society as a while and global shortages of vehicles, then we have very many reasons to be fearful.
Cox’s report says that Q2 2022 could end on a little over 436,000 registrations, a drop of almost -9.9% YoY, with Q3 predicted to end on around 483,000 registrations, a +22% rise YoY.
But it’s not all doom and gloom. There are still profits to be made, says Nothard.
Nothard said: “It is looking increasingly likely that the pre-pandemic automotive market we all knew may never return as the sector continues to be hit by headwinds. Whether it is a growing number of manufacturers switching to the agency model or ongoing supply chain disruption, the UK’s automotive sector looks set for short to medium-term volatility and may well emerge from this looking completely different to pre-pandemic levels.”