Despite the supply of new vehicles being disrupted since the COVID-19 pandemic, Cox Automotive Europe has estimated that the global market for automobiles will make a tentative recovery this year.
The automotive services organisation cites the evolution of the agency model, the entrance of new players, and the growing transition to electric vehicles (EVs) as factors that could drive vehicle sales over the coming years. It sees the major brands increasingly focussing on their EVs and abandoning legacy models in the run up to bans on traditional engines in the UK and EU. This will leave a gap for newer brands, especially from China, to gain a presence in the market by initially offering petrol, diesel and hybrid vehicles.
Cox Automotive’s Insight and Strategy Director, Philip Nothard, said that the automotive industry should be optimistic rather than focus on the problems of recent years:
“It would be correct that overall sales (and therefore production) have dropped off a cliff compared to pre-pandemic levels, but we should not be so pessimistic. Instead, we should look at the opportunities presented to us within the automotive industry and the forced development resulting from COVID-19.”
He added that it was not feasible for the automotive sector to replicate its pre-pandemic success but pointed out that this year could be critical for exploring new horizons.
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