Businesses across the automotive spectrum must adjust to a new normal and even embrace it, as a result of Covid and the unpredictable changes that have occurred since.

From manufacturers to independent motor dealers, businesses must acclimatise to a new norm, according to Cox

Following a year of frustration, as new vehicle production problems caused disruption as a result of semiconductor shortages and coronavirus restrictions, Cox Automotive has said the auto industry “must think beyond the traditional and embrace it, as there is no quick fix back to previous normality”.

According to Cox, ‘VUCA’ – an acronym that stands for volatility, uncertainty, complexity and ambiguity – is likely to be the next big buzzword for the automotive industry and, more specifically, on used values, as a result of Covid.

Philip Nothard, insight and strategy director at Cox Automotive, said: “From manufacturers to independent motor dealers, businesses must acclimatise to a new norm. Additionally, the use of digital has disrupted the industry, and so have changing market dynamics. What used to be seasonal norms no longer exist as everyone adjusts to a completely new trading climate.”

With demand likely to outstrip supply of vehicles for some time, Cox Automotive’s view is that the market will not return to pre-Covid norms.

Nothard explained: “We will see the market softening in time, but there is no tsunami of product on the horizon for two reasons. Firstly, because producers of semiconductors don’t expect normal conditions to resume until 2023 and secondly, because the types of vehicles entering the wholesale sector are not the same experienced in pre-pandemic times.”

And with another year of unpredictability on the cards, the business is urging the auto sector to adapt to VUCA and embrace change.

Nothard continued: “The expected rise in energy bills will continue to hit disposable incomes, there remains no end in sight to inflation, we will experience further digitisation of retail and digitally assisted sales, changes in the way OEMs retail new and used cars are accelerating, a rise of subscription/mobility products is imminent, and we will continue to shift to EVs as the year 2030 nears.”

For the remarketing sector, Cox has said the new normal for 2022 must see used cars continue to be priced correctly, and presented and marketed properly, ensuring products remain attractive to consumers, despite changing market forces in the background.