MHA Motor Dealer Report 2017

Our Motor Dealer Report 2017 shows that the sector is resilient, despite Brexit and profitability concerns driving a pessimistic sector outlook for 2017.

The report covers the Current Outlook, The Future, including on-line retail, Alternative Fuel Vehicles (AFVs) and the future of car dealerships in general, and the M&A Outlook. The report 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 and expert commentary from Sue Robinson, Director at the NFDA.

Key Findings:

  • Only 24% of UK dealers expect an increase in profits in 2017; a drop of 20% from 2016.
  • 8 out of 10 dealers say Brexit uncertainty will have adverse impact on the sector.
  • Used car performance expected to have most positive impact on profitability.
  • Pre-registration levels, consumer confidence and costs have most adverse impact on profitability.
  • Online retail set to become integral part in the future new car purchasing model.
  • 59% happy with franchise partners’ future proofing strategy for AFV and autonomous vehicles.

View the full MHA Motor Dealer Report 2017

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 team, please contact Ginni Cooper or call on 01772 821021 to be put in contact with a member of our Motor team.