Experian, the global information services company, has published its first Automotive Market Insight Report.
Kirk Fletcher, Managing Director of Experian’s
Automotive division (right), said, “Feedback from our automotive clients
underlines how the quality of our advice, insight and technology is
playing an instrumental role in helping them to successfully adapt to
the rapidly changing environment. “As one of the most comprehensive
sources of vehicle information in the UK, our new report provides
detailed analysis and recommendations that address the biggest
challenges facing businesses in the automotive sector.”
Although the first half of the year saw a fall in used
car sales, it was not as severe as it was last year, when sales were
down 2.5 pc compared to 2006. Most recently, however, 91 pc of dealers
have reported that the number of consumers visiting their showrooms has
fallen , so official figures for the second half of the year are likely
to reveal a greater drop.
Rising inflation has seen consumer expenditure exceed income and car
use is one of the areas that has experienced the highest inflation.
With the increasing costs of fuel, finance and insurance, as well as
recent increases
in Vehicle Excise Duty, car owners have had to budget far in excess
of the annual inflation rate in order to remain mobile. As a result,
consumer attitudes have shifted towards a far more price conscious
position and they have begun to reduce their spending, at least for the
short term.
The current environment is being compared to the last major slowdown in
the 1990s, but one of the key differences is the role played by the
Internet. It is clear that the key defining feature for the market
going forward is price sensitivity and the Internet has enabled
consumers to seek out the best deal available.
It is, however, important to bear in mind that car use is considered
more of a necessity these days, so it is one of the areas that
consumers are more likely to subsidise by curtailing spending in other
areas of their lives.
Furthermore, there will continue to be pockets of growth in the market,
for example, the rise in sales of smaller cars. These growth areas will
continue to change and evolve, so the challenge is not only to keep an
eye on them, but also to understand them in order to take advantage of
the opportunities that arise as a result. For instance, the squeeze on
credit in other areas of the market has opened up opportunities for
dealers in ‘point of sale’ finance.
Car values have fallen, automotive businesses may well be less
profitable and consumers are becoming far more selective in the current
climate. The way forward for automotive businesses is not to rigidly
stick to just what has worked in the past. Instead it is about using
data and insight to anticipate and adapt to a rapidly changing
environment. Those that do adopt this approach will come out more
focused and prepared for potentially more challenging times to come.
Drawing on Experian’s extensive data and analytics
capabilities, the report provides in-depth insight into how the UK ’s
automotive industry has coped in the current climate and expert advice
on how to increase business performance in the coming months.
Experian’s Automotive Market Insight Report includes:
• sales analysis by vehicle, fuel type and manufacturer • automotive
business insolvency and fraud statistics • analysis of external market
forces and their impact on consumer confidence (including: fuel prices,
insurance premiums and motor finance) • business advice on risk
management and the steps to enhance marketing and contact data
management strategies • the business outlook for the automotive sector
and the key areas companies need to consider.
.gif){kind=small}
