electric vehicle sales in 2024 (of around 17 million units forecast to be sold globally). Aside from the move to EV, wider technological advances continue
to transform the sector. There is a growing demand for digital experiences, such as online vehicle sales and virtual showrooms with the average consumer in 2024 now expecting a raft of in-car technology as standard; intuitive infotainment systems, autonomous driving features and connectivity options like smartphone integration and over-the-air update, all whilst remaining price and value sensitive. To this end, global OEMs continue to invest in autonomous driving and connected vehicle technologies, incorporating artifi cial intelligence, machine learning and 5G to enhance vehicle safety, navigation and user experience. However, these technologies come with a raft of their own problems to solve in respect of regulation, cybersecurity and public acceptance (particularly considering the aggressive expansion plans Chinese OEMs have on established western markets, including that of the UK). At home, potential headwinds with the governmental regulatory
fraternity remain very much an issue at the top of the automotive agenda for OEMs, automotive retailers and third-party providers in the wider supply chain. Aside from continual regulatory change and rapid technological
advancement, changes to the economic landscape continue to bite; the increasingly outmoded model of car ownership remains pressed, with consumers more and more exploring fl exible leasing and subscription service ownership models, which are seen as off ering greater fl exibility when compared to traditional ownership. All at a time when the sector is facing enhanced compliance with increasingly stringent regulations requiring signifi cant investment of time, money and people – the transition to electric vehicles involves substantial R&D and infrastructure costs. Alongside all of this, the automotive retail market is more
competitive than ever, with numerous players vying for market share and a steady drip of consolidation happening right across the AM100 and beyond. Retailers continue to strive to diff erentiate themselves through pricing, customer service and value-added services to remain competitive and time will tell whether the strategies being deployed off er the relative insulation they are perceived as providing. T ere is no doubt that the UK automotive sector remains in a
state of signifi cant transformation, driven by advancements in tech- nology, evolving regulatory requirements and shifting consumer preferences. As the industry adapts to these changes, it faces both challenges and opportunities. T ere is no crystal ball, but what is more certain is that the future will be shaped by how eff ectively it can navigate these dynamics, innovate and embrace new ways of operating in a rapidly evolving landscape.
Tom Redman is a Partner at Howes Percival LLP, Head of its
Automotive team and routinely advises Top 25 franchised and independent motor dealer groups on their UK M&A acquisitions and disposals programmes.
For more information visit:
www.howespercival.com/sectors/automotive/ or contact
tom.redman@
howespercival.com
11
MOTORS
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
