Hold your nerve for the road ahead
Philip Nothard, Insight and Strategy Director,
Welcome to issue ten of AutoFocus.
Welcome to Issue 10 of AutoFocus, Cox Automotive’s quarterly peek behind the automotive curtain.
When we launched our first-ever AutoFocus back in April 2021, we did so to bring you the latest forecasts about new and used markets and to give you the latest, most relevant info and thoughts of industry leaders that we could muster. You’ll be pleased to learn that the latest edition continues that mission with the usual zeal.
The industry is undergoing what can justifiably be described as a makeover, but the changes we’re seeing are far from cosmetic. Ever the hot potato of this transformation, the agency model has remained centre stage. Some OEMs are embracing it wholeheartedly, while others are adopting a wait-and-see approach.
It’s clear that the automotive industry in the past three years has been characterised by disruption and that we have seen, as a result, a pronounced shift towards greater digitalisation of the car-buying journey as well as an inevitable focus on electrification. Arguably, the agency model, where OEMS take ownership of data, pricing and everything else that’s relevant, is a consequence of that shift.
That’s why we touch on the model in our latest issue and address the changing landscape for the new and used markets. We also cover topics that exemplify the sea change. AI is one such area that’s ripe for discussion, specifically what it is, where it’s going and whether it’s been oversold where vehicles are concerned.
"The industry is undergoing what can justifiably be described as a makeover, but the changes we’re seeing are far from cosmetic. Ever the hot potato of this transformation, the agency model has remained centre stage."
Philip Nothard, Insight and Strategy Director, Cox Automotive
This issue also hears from ICDP who ask whether the key to survival in automotive is creating scale. There’s also Grant Thornton detailing approaches to omnichannel in the used market and we get the latest from Regit on why there’s room for optimism in used EV sales statistics.
As with previous editions, you get my carefully drawn forecasts, gleaned from up-to-the-minute statistics and many years’ experience working in the automotive industry.
What’s clear from all of the above is that we’re currently in the eye of a transformative storm for automotive, a set of rapidly changing circumstances where the long-term impact on retailers is not yet known. Holding your nerve and maintaining strong business foundations guided by clear long-term strategies is the order of the day. Is there a better way to remain in good shape once the road ahead becomes clearer?