Insight and strategy director Philip Nothard says that hopes of a bounce back with new vehicle production and used car supply were proving short-lived, with production and supply challenges likely to extend into 2023 and beyond.
Against a backdrop of continued headwinds, he emphasised the need for businesses to embrace this new reality, maintain strong business foundations and implement clear long-term strategies.
While planning in the short to medium term is made difficult by heightened levels of uncertainty, he stressed the importance of establishing strong fundamentals and targeting sustained cost and operational efficiency gains in preparation for when supply returns to stronger levels.
He said: “Although the prospect of a return to pre-pandemic market conditions has become increasingly unlikely, we cannot know what’s truly ahead of us.
“The goal should therefore be to focus on developing and implementing a clear long-term strategy and doing the basics well.”
The latest AutoFocus, the firm’s quarterly automotive insight, expands on the recent challenges faced by the sector, touching on various issues, including the economic factors shaping the automotive market, changing retail dynamics and the latest thinking on electric vehicle battery technology and charging.
It brings together perspectives from industry experts such as Professor Dr Stefan Rostek from University of Europe for Applied Sciences, Owen Edwards at Grant Thornton, Steve Young from the ICDP, and Tom Callow at Myenergi.
It also highlights Cox Automotive’s latest new and used car forecasts for 2022 and 2023, analysing recent developments within the market and their impact on pricing trends.