Cox Automotive’s latest insight report, AutoFocus, gives reason for optimism for the industry, saying signs of recovery are being detected.
While the short/medium term will still see small volumes of new and used vehicles come to market, due to the ongoing supply chain issues, the longer term looks rosier, not least due to the increasing volumes of EVs being sold.
Strategy director, Philip Nothard, 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.”