Does 'normality' exist anymore in the automotive industry?
Philip Nothard, Insight and Strategy Director,
Welcome to issue seven of AutoFocus.
Welcome to issue seven of AutoFocus, Cox Automotive’s quarterly insight magazine.
As we near the end of another turbulent year, it’s become clear that hopes of a big recovery for new vehicle production and a return to regular supply in the used market were perhaps premature. There has been a recovery of sorts, but certainly not enough to bring about normal market conditions and it’s likely the current challenges around production and supply will continue well into the 2023 and possibly beyond.
After three years of relentless headwinds, is it time to accept that we are now in a world where ‘normality’ has ceased to exist?
I predicted at the start of the year that the automotive industry had to get used to ‘VUCA’ - volatility, uncertainty, complexity, and ambiguity. Considering all that’s happened since – the war in Ukraine impacting supply chains and energy prices, coupled with a cost of living crisis – I believe this statement is more prudent than ever.
While we are confident pre-pandemic market conditions will never return, without a crystal ball, we cannot know for sure what’s ahead of us. For now, our advice is to embrace this change, control the areas you can control, maintain strong business foundations, and implement clear long-term strategies. The uncertainty in the markets makes it near impossible to plan for the short to medium-term. But continue to do the basics well, review your operations and costs and find efficiencies, so that once more supply enters the market, you’ll find yourselves in a strong position.
“For now, our advice is to embrace this change, control the areas you can control, maintain strong business foundations, and implement clear long-term strategies.”
Philip Nothard, Insight and Strategy Director, Cox Automotive
As ever with AutoFocus, whether it’s the economic factors impacting the automotive market, supply shortages, changing retail dynamics, or the current thinking on EVs, we’ve summarised the key information you need to know so you can make more informed decisions today.
In this issue you’ll find a summary of the big three global pressures influencing the new vehicle market, as well as our latest registration forecasts for 2022 and 2023.
We also dive into the latest in the used vehicle market, including a look at pricing trends and our revised used car transaction forecasts.
And once again I am delighted to welcome some excellent guest contribution from Prof. Dr. Stefan Rostek, Owen Edwards, Tom Callow and Steve Young.
I hope you find this edition of AutoFocus insightful and that it provides context to the challenges you are facing right now. If there is anything you want to learn more about or see in future issues, then please do not hesitate to contact me, but for now, enjoy.