Industry consolidation has been seen as a threat for regional groups, but the raft of significant changes facing automotive retail will not diminish a place for the strongest players in the market.
The next five years will see big shifts in the distribution model for many original equipment manufacturers (OEMs) as many look to cut costs and shrink networks to the best performers, ramp up in electric vehicle (EV) volumes and put even greater emphasis on omni-channel retailing.
The dealership’s role will be to handle in-person interactions, test drives and vehicle handovers, with dealers taking a fixed commission for each vehicle. Marshall Motor Group’s CEO Daksh Gupta has already gone on record welcoming the switch to agency, but how will this affect the regional players in particular?
Marshall Motor Holdings Plc (LON:MMH), together with its subsidiaries, engages in retailing passenger cars and commercial vehicles in the United Kingdom. It sells new and used vehicles; and provides after sales services, such as servicing, body shop repairs, and parts sales.