UK automotive executives expect that almost half of all car dealerships will disappear in less than a decade, according to KPMG’s Global Automotive Executive Survey 2018.
UK automotive executives expect that almost half of all car dealerships will disappear in less than a decade, according to KPMG’s Global Automotive Executive Survey 2018.
The survey found that 75 per cent of UK automotive executives think that 20-50% of the brick-and-mortar retailers will no longer exist by 2025.
61% think that issues around vehicle financing may become a concern due to lower residual values and 63% believe that the share of vehicles manufactured in Western Europe will drop to less than 5 per cent by 2030.
It is still undecided whether diesel is dead or not: 50% of executives still believe that diesel is a technologically viable option.
Justin Benson, UK Head of Automotive at KPMG, said: “In the UK, our findings are clear on one thing, there are more significant disruptors to the automotive sector than Brexit. Electric vehicles, autonomous vehicles and Mobility as a Service (MaaS) are going to drive change in the automotive sector for the foreseeable future. New business structures and new economic models are on the horizon, driven by these disruptors and the associated new technology. It’s an exciting but uncertain time for the industry. Whilst our report highlights concerns in some of its conclusions, it also helps chart a path to future success.
“The majority of UK automotive executives are convinced that the only means for dealers to survive is by restructuring into a service factory or a used car hub in the future. This is certainly a warning sign for physical retailers and presents a need to rethink retail concepts and business models, particularly with customers purchasing more of their goods and services at the touch of a button.”
The BVRLA is delighted to announce that KPMG’s Justin Benson will be speaking at this year’s BVRLA Fleet Technology Congress on 5 July 2018 at the Williams F1 Conference Centre in Oxfordshire. To secure your place at the Congress contact BVRLA Events Manager, Fran Hampson.
