BVRLA members have put growth back on the agenda for next year, predicting positive performance across virtually all market segments. The optimistic outlook ran across the association's recent Industry Outlook report and corresponding conference. Delivering exceptional customer care was frequently cited as a cornerstone of any growth ambitions.
Having endured decade-high interest rates, turbulence in the used car markets, and a stagnating national economy, the Industry Outlook Report shows that members believe that 2024 will bring more positive results. Analysing data from across BVRLA membership, the report presents a favourable outlook for all key business metrics, vs the same time last year.
Supply of new cars and vans are both expected to increase, with 43% of respondents expecting car supply to be back to pre-Covid levels by the end of 2024. Hand in hand with supply returning, BVRLA members anticipate better demand in the new year too, across consumer and business sectors. Confidence is shown across all markets, with rental, subscriptions, salary sacrifice, and car clubs expected to have a better year too.
With the overall outlook improving, there are alarm bells ringing to offset some of the confidence. The levels of residual value risk being carried by BVRLA members is a major concern, particularly on battery electric vehicles. Prices of second-hand BEVs have been in freefall for a year, tumbling by more than 30%. The report predicts improvements to BEV cost of ownership, which will go some way to strengthening used BEV demand and realign values.
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All elements of the report were explored in detail throughout last week’s Industry Outlook Conference. Panel discussions, breakout sessions, workshops and keynote addresses gave the 200+ members and stakeholders in attendance a complete picture of what is in store for 2024.
Underpinning the cautious optimism presented by the report was the importance of consumers and delivering consistently high levels of customer service. Regardless of the sector, product type or stage of the customer journey, putting their needs at the centre of everything was a view that echoed through every discussion.
The full Industry Outlook Report is now available online. It features commentary and insights from the BVRLA and senior executives from across the industry.
