A version of this blog originally appeared on the website of our MHA association.
Motor Dealer Report 2017
Our latest MHA Motor Dealer Report is now available!
The report highlights the trends from a national survey of Motor Dealers, providing a snapshot of the industry in 2017 as well as the key opportunities and challenges facing dealerships in the year ahead. It also features the Dealer View from Trevor Reeve (Pentagon Chairman), the Manufacturer View from Paul Flanagan (former Renault/Dacia MD UK and Ford MD France) as well as expert commentary from Sue Robinson (Director at the National Franchised Dealers Association).Read the 2017 Motor Dealer Report
- Only 24% of UK dealers expect an increase in profits in 2017; a drop of 20% from last year (click to read the 2016 Report).
- 8 out of 10 dealers say Brexit uncertainty will have an adverse impact on the sector.
- Used car performance is expected to have the most positive impact on profitability.
- Pre-registration levels, consumer confidence and costs have the most adverse impact on profitability.
- Online retail is set to become an integral part in the future of new car purchasing model.
- 59% of dealerships are happy with their franchise partners’ future proofing strategy for AFV and autonomous vehicles.
Overall the report reveals that despite Brexit and profitability concerns driving a pessimistic outlook, motor dealers remain resilient. Steve Freeman, Head of the MHA Motor sector comments:
“I am not surprised to see the survey results confirming the marked change in dealer confidence levels we have heard from our clients recently. The industry is really going through a period of change and I do think that online developments may start moving at a pace now. The continued strength and resilience of the sector is certainly dependent on all parties (including manufacturers and their franchise partners) working together to ensure a sustainable business model for the future.”
If you would like to discuss any of the issues raised in this report in more detail or you would like to speak with a member of our Motor Retail team, please call 01903 234094.