Accounting firm Pitcher Partners is warning dealers and the wider automotive industry about an “uncertain future” that could be brought about by autonomy and car-sharing.
The Pitcher Partners 2018-19 Key Performance Indicators for Automotive Retailers report shows the shift to a customer-centric business could dramatically shift the dealer’s role.
Online purchasing and car-sharing, according to automotive business advisory and assurance partner John Gavljak, are the likely factors set to change the fate of dealers.
“Google figures show that dealer visits fell from an average of 2.2 in 2012 to 1.7 in 2015,” Gavljak explains, “Initial customer interaction is now nearly always online.”
Pitcher suggests that vehicle autonomy is “still some way off”, however “dealerships need to start positioning themselves for a potential shake-up once a car is able to start driving itself home from the factory or pier”.
The report analyses VFACTS data of new car sales and the performance of Australia’s economy, noting “consumer spending increased by just 0.3% in the first quarter (of 2018) and is largely a result of negligible wage growth and high debt levels.”
The report suggests household savings are unlikely to be funneled into consumption as a result of low recorded wage growth – which could be detrimental to new car sales in future.
The report also highlights “the emergence of various car sharing companies in the last few years…presents challenges to automotive dealerships as consumers’ attitudes towards car ownership (change)”.
This attitude change “may result in declining demand for vehicles in the future…compounded by surging online vehicle sales, which are continuing to increase each year.”
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