The automotive distribution market remains “resilient” in the face of unprecedented headwinds, with “positive signs that a recovery is on the horizon”.
That’s the view from Cox Automotive Europe as it releases the sixth installment of its quarterly roundup, AutoFocus.
AutoFocus brings together the latest market insights from Cox Automotive as well as Grant Thornton’s Owen Edwards, ICDP’s Steve Young and 360 Media Group’s Ian Richardson.
AutoFocus reflects on recent challenges facing the industry and addresses various issues including the shortage of available inventory, the rise of electric vehicles (EVs) and the current cost of living crisis.
Philip Nothard, Insight and Strategy Director at Cox Automotive, said: “While we can always find reasons to be negative, we know there are green shoots of recovery emerging in the market.
“However, there remain a number of complex challenges to overcome before we see a full recovery. The production of new vehicles, even if it is improving for some manufacturers, is still far from what it should 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 new vehicle volume forecasts and where we go from there.
“We must then consider the impact of this shortage on the second-hand market. After increasing dramatically over the past two years, used vehicle prices are leveling off and, in some cases, falling. Again, our revised used car predictions explore this in more detail.
To view the latest issue of AutoFocus, Click here.