Executive View: Dale Wyatt's expectations of UK motor retail in 2024

The months ahead will bring a "hyper competitive environment" with fresh entrants to the new car market, existing OEMs battling to convince retail buyers about EVs, and a close eye on cost bases, according to outspoken industry executive Dale Wyatt as the Suzuki GB boss shared his expectations for 2024 on LinkedIn. 

“The afternoon knows what the morning never expected” Reflecting on the opening quote I am sure there will be unseen events and surprises in 2024 but I think some things are becoming clearer…

We can officially say goodbye to the sellers market. The market has moved from pull to push and has tipped back in favour of the consumer.

Looking ahead there will be a margin squeeze and OEMs will look to the dealer/ agent to share some of the pain.

EVs are here there and everywhere with new brands and new models entering the fray all searching for new ways to convince retail buyers to embrace a new era.

As we snap back to the new reality of stock and margin pressure the need to adjust the cost base will become very apparent.

We will all witness the return of the highs and lows of automotive retailing in a hyper competitive environment.

The disrupters and innovator's will be a tad more cautious and may well seek low hanging fruit and excitement in other sectors.

OEMs will have to contend with the ZEV mandate and balance volume and EV product mix. This will require a very keen eye in q3 followed by delicate micromanagement of registrations in q4!

The UK customer appetite for EVs will become very clear enabling OEMs to rethink ( +/- ) the various 2025 to 2030 volume assumptions.

Agency agreements will continue to be put on hold for now as manufacturers and retailers stick to their lane and realise the need to get along and co exist.

As we approach the election the narrative could move from "saving the environment" to "saving the economy".

I don’t think we should expect any sympathy after all the industry has enjoyed a very profitable period and hopefully everybody has put some funds aside for a rainy day.

Typically the sales teams start jumping up and down at the onset of the first light shower and the finance teams can often be slow to dish out the umbrellas when we are clearly in the middle of a heavy down pour

It’s time for strong leadership. My advice to business owners (if I was asked) is this...The key priority as we enter 2024 is to answer the big leadership question: Where to from here, and why should you join me on the journey?

1. Acknowledge the situation.
2. Articulate the compelling need for change.
3. Share the present and future state required to suceed in 2024.
4. Engage and align the business behind the plan for change.
5. Execute the plan.

Author: Dale Wyatt, director, Suzuki GB