Some dealers in the Uk automotive retail market have become too complacent and need to create activity rather than manage it, according to the head of Suzuki UK.
According to Dale Wyatt, Director of Suzuki, UK and Ireland, dealers must become reacquainted with the skills needed to operate in a ‘push’ market to succeed in 2024 and beyond.
Contributing to the Insight Report produced by automotive services organisation Cox Automotive, Wyatt said that some in the sector had veered into complacency and needed to be more proactive to succeed in an altered commercial landscape.
“Many people haven’t the muscle memory for performing in a push market,” Wyatt said. “We’re in a period of what I call post-covid cosiness – the key thing to think about now is how to survive in a market that punishes inactivity and rewards consistent proactivity.”
Recent research by Cox Automotive and other industry experts suggests that UK automotive is transitioning back to a push model, following supply chain disruptions of recent years and the high demand witnessed in the past year alongside diminishing lead times. Manufacturers are investing more in marketing to encourage sales, a ‘push’ hallmark.
Wyatt added that both new and ongoing geopolitical events will impact the sector this year, and he believes shifting market dynamics will play a part too.
“The used residual values issues, as well as the shortage of three to seven-year-old cars, will have an impact. It will be interesting to see what happens to early-generation EVs too – they could prove to be quite undesirable in the used market.”
Wyatt’s views were supported by Cox Automotive’s Insight Director Philip Nothard. “The changes we’re seeing underline the fact that it’s time for dealers to get their running shoes on and get back to selling, as opposed to order-taking,” he said.
“Supply has increased significantly, and the market is ripe for agile business owners to do what they do best.”
Wyatt added that to be competitive in 2024 the mindset of dealers would be hugely important and that dealers’ to-do lists should become ‘do-it-now’ lists; “I also think too many are following the crowd – there are close to 40 brands in the UK now, hundreds of products and thousands of places to buy them. There are plenty of businesses delivering bad experiences to customers.
“To stay competitive, it’s about getting your core processes right – let your people shine and do the basics brilliantly. Don’t get in the way of your management team, become an enabler rather than a blocker.”
Wyatt described the ongoing agency model saga as a design-and-build project rather than a purpose-built one. “If you watch Grand Designs, the houses are invariably fantastic by an episode’s end, but they normally go over budget and take much longer than planned. That’s how agency will go; some will get it right, and a lot will get it wrong in the process.”
He added that accountability and knowing what matters are two of the most valuable things for dealers to understand. “Every business problem has two legs, in other words they’re always people related. It’s the people you’re accountable to, for and those you serve – bosses, employees and customers. Decisions must be weighed carefully because they will always affect at least one of those stakeholders.
“Another great piece of advice once given to me: Not everything that can be counted counts – and everything that counts can’t be counted. I think that speaks for itself.”
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