Philip Nothard, Insight & Strategy Director for Cox Automotive and lead author of our annual Insight Report, gives us a sneak preview of what to expect from this year’s report.
As we stand here on the cusp of 2021, we look back on a year of exceptional industry transformation. Without doubt there have been many challenges; the looming prospect of a no-deal Brexit was enough to raise alarm bells in some quarters, while the unforeseen COVID-19 pandemic presented significant hurdles for almost every business.
However, the past 12 months also provided opportunity for positive transformation: digital retail has accelerated and vehicle ownership and driving patterns have been questioned, presenting opportunities for alternative fuels.
In a period of such change, it’s apt that our upcoming Insight Report, produced in partnership with Grant Thornton and now in its third year, will highlight some of the key opportunities for the automotive industry.
The report brings together expert opinion from across the automotive industry alongside our own data and analysis to provide a robust picture of the factors we believe will have the biggest impact over the next 12 months and beyond.
Here’s a quick overview of what to expect:
1) The market: forecasts and scenarios
We explore the new and used car forecasts for 2021, as well as offering scenarios for a three, five- and seven-year horizon. This will be framed in the context of comparisons to the post-crash automotive sector of 2007 onwards. We will also look at key emerging trends for the new and used van market and key factors which impact on commercial vehicles. Whilst considering the current and future impact on vehicle values as a consequence of supply and demand and learning from the 2007 financial crisis.
2) What comes next for the road to zero
This section focuses on electric and other alternatively fuelled vehicles. From the perspective of the asset, we will review infrastructure, consumer demand, legislation, vehicle servicing and the impact on the automotive retail sector.
3) Building on the subscription economy
Finance models continue to evolve, and, within this section, we will outline the growth of the subscription economy, opportunities in aftersales, SMR and logistics. We will also explore concepts of mobility as a service.
4) Leaping into digital retail
COVID-19 has accelerated a digital trend which was already firmly in progress. In this section, we review the digital customer experience, how the end-to-end journey is evolving, and opportunities for manufacturers and dealers to stand out.
5) Adapting to big data, connectivity and technology
The rapid adoption of ADAS and other vehicle technology provides the insurance market with challenges and opportunities. Within this section, we look at how the market is adapting and consider questions around data ownership and application.
6) Business strategy for 2021 and beyond
We are aware that the market is shifting rapidly, with external conditions providing even greater impetus to consolidation and restructuring activity. Within this section, we look at some of the practical planning activities which automotive organisations can undertake, as well as setting the UK experience into an international context. This section summarises the impact of the previous five on the dealer sector.
With all the inevitable challenges working on a collaborative and detailed project of this nature during a pandemic has presented us, it’s been a challenging report to pilot this year, but nevertheless a fun and fascinating one. I’m genuinely thrilled with this year’s report and am thoroughly looking forward to sharing it with you very soon. We’re currently running through the final edits ahead of launching later this month – follow Cox Automotive and/or myself (@philipnothard) on social media to find out when.