• A significant increase in demand for electric vehicles, which as we’ve already seen has the potential to lead to shortages within the production supply chain.
• Disruption to business models as EVs become more widely used by the general public and their perception surrounding the vehicles shifts.
• Vehicle dealerships are likely to run into issues surrounding lower servicing demands as well as an increase in the number of leases given.
• Long-term impact of COVID-19 including the need to create more geographically diverse and resilient supply chains or multi-sourcing key components.
• Uncertainty and disruption following Brexit affecting imports and exports, in turn impacting on the sustainability of supply chains.
• An over-supply in some markets, such as the luxury car market, can cause consumer confidence to drop and prices to fluctuate.
• With an increase in the popularity of car leasing and app-based mobility services, it is becoming more difficult to entice new customers to purchase their own vehicle.
• Changes in consumer and consumer perceptions surrounding certain vehicle types or models leading to an excess of stock that cannot be sold.
• Public perceptions around a “buyers’ market” driving down sale value creating higher competition on price and lower margins.