The automotive sector will be able to “grow and thrive” despite a whole list of issues facing the sector in a challenging 2023, the Vehicle Remarketing Association (VRA) has said.
Stock shortages, agency agreements and electrification were among the key topics addressed at this week’s VRA annual seminar, but chair Philip Nothard asserted that there was scope to adapt and succeed.
Speaking at the event, held at Warwick University, Cox Automotive’s insight and strategy director said: “There is a whole list of issues facing the remarketing sector – from recession to stock shortages and agency agreements to electrification – and these will need to be met with intelligence, commitment and often investment.
“However, there was also a very clear message coming through that this remains a sector that, by adapting to changing rapidly customer needs and difficult market conditions, will very much grow and thrive.”
Yesterday AM reported on the presentation of Graeme Chaplin, Bank of England agent for West Midlands and Oxfordshire, at the VRA Annual Seminar.
After UK inflation rose to 11.1% in October he told delegates that the base rate, known as the Bank Rate, is expected to rise to “about 4.5% to 4.7%” from its new 3% rate, placing pressure on household spending and the cost of motor finance. He added: “A slowdown is coming.”
In the recently-published 2022 AM100 report, however, some of the UK’s top car retail group business leaders spoke about their targets for success in 2023.
Perrys Group managing director Darren Ardron said that, while he is concerned about rising costs, he expects the used car sector to remain strong.
He also said that businesses will need to start “thinking outside the box” for new profit opportunities.
Ardron’s business recently launched its Perrys Flex subscription offering in partnership with Karzoom.
John Caney, chief executive of Endeavour Automotive, said a continued focus on cost management would remain the “bedrock for continued growth” in his business, however.
He added: “The full impact of external factors is yet to be realised as we move into the winter months.”
Click here to access the full 2022 AM100 report.