BULLETIN Your monthly news round-up of the Scottish Motor Industry
OCTOBER 2021
FEMALES IN FOCUS – SUCCESS AT OUR INAUGURAL EVENT SMTA hosted their first ever Females in Focus lunch on Friday 24th September at the Norton House Hotel in Edinburgh. The afternoon was a great success, our audience enjoyed listening to our amazing panellists: Mary-Anne McNaughton of Central Car Auctions; Maggie Barry freelance motoring journalist and Chloe Grant a 15 year old junior racing driver. We feel it is extremely important to highlight the successes and opportunities for women in the motor trade and events like these are a great platform to bring together women from all different areas of the industry to network, listen to other inspirational females whilst having a fabulous lunch. At the event Mary-Anne McNaughton, one of our panellists and also the first winner of our ‘Nan Lindsay’ Award, an award set up in the memory of our first and only female President of the SMTA.
The approved insurance broker to the Scottish Motor Trade Association
We would like to say a huge thank Central Car Auctions for their sponsorship of the event and to Garashield for their support also and last but not least, thank you for the loan of James Bond car (sadly Daniel Craig couldn’t make it!) the Aston Martin was provided by Grange Aston Martin Edinburgh.
We are busy preparing for Females in Focus 2022 – watch this space.
HIGH DEMAND SEES WHOLESALE USED CAR AND LCV PRICES RISE IN Q3 The past year as seen unprecedented rises in used car values, and this has boosted the bottom line for dealer groups. Dealers are more accustomed to car values decreasing over time and the opposite has been the case. At retail level there has been what one dealer describes as “exceptionally strong” consumer demand in the market, which has fuelled used car prices, up over 15% year-on-year. Dealer group Lookers is among those who have benefited from the rising values. It turned in a record first half performance. Gross profit from used cars was £89.8m compared to £43.5m last
time, a like for like increase of 134.1%. In the wholesale market strong levels of demand continue to drive average used car prices to new heights. BCA reported record values for the second consecutive month supported by sale conversion rates reaching historically high levels for the time of year.
The average used car saw values rise 3.6% to £9,513 at BCA in July, a 3.6% increase over June’s average figure – itself a record value at the time – and nearly £1,000 or 11.7% ahead of the same month in 2020. It is the second consecutive month that average used car values have risen above £9,000 and sold values continue to outperform guide price expectations.
Article courtesy of www.motortrader.com
DEALERS ADVISED TO PREPARE FOR EV TRANSITION IN CHANGING INDUSTRY Dealers must prepare for an automotive industry that will be “unrecognisable in the coming decade”. The fourth annual Cox Automotive and Grant Thornton Automotive Insight Report highlighted the impact of electrification; digital transformation; and the possibility of the manufacturer agency model. It suggests dealers will need to rethink consumer engagement and revenue streams to remain competitive in years to come. The report notes that consumers expect a seamless experience across the channels they choose. Vehicles must be visible through search, and it must be straightforward to connect all stages of the customer journey, including trading in a part-ex and arranging funding. To create this seamless end-to-end experience, the report suggests that connecting data and touchpoints are vital. Louise Wallis, Head of Business Management, NFDA, said: “In the most recent NFDA Dealer Attitude Survey, it was positive to see dealer satisfaction levels with
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their manufacturers improved. There are certainly reasons to be optimistic, although caution is still recommended as we head into winter and the uncertainty of how this will impact trading conditions. As the sector moves towards a more digital, connected, and electrified future, significant investment will be required by dealers to ensure they are ready to take advantage.” However, the report also affirms a large proportion of car buyers are still looking to complete their next transaction in a dealership, while, in various markets, legislation makes the direct-to-consumer model very difficult. While still making up a relatively small proportion of the total, the report also notes that online used car sales are likely to double in the next five years. Philip Nothard, Insight and Strategy Director at Cox Automotive, added: “With direct-to-consumer models on the
horizon for many manufacturers, there is an opportunity for dealers to keep their relationship with drivers through education and information centres. How these evolve to generate both footfall and also drive sales opportunities, even if those are via the manufacturer website, will be interesting to see. The importance of the dealer in helping consumers with the transition to electric should not be underestimated.”
Article courtesy of motortrader.com
LATEST CAR FIGURES
FUEL TYPE
REGISTRATIONS BY REGION
SEPTEMBER 2021
YEAR TO DATE Petrol
69,370
Total Scotland
Diesel
16,984
19,395
Petrol/Electric
15,038
1,953
168
Diesel/Electric
=
1,591
Central 1,786
970
167
Petrol/LPG
Highlands
Grampian
7,273
Electric
Summary
902
Strathclyde
2,641
9,268
Ford
8,686
Vauxhall
8,632 7,663
Toyota
6,958
Audi
6,749
BMW KIA Mercedes Hyundia Peugeot
6,148 5,129 4,707 4,344
8.50% 7.97%
7.92%
7.03%
6.38%
6.19%
5.64% 4.71%
4.32% 43.99%
TOP SELLING
MARQUES YTD 2021 Figures courtesy of SMMT (Society of Motor Manufacturers and Traders)
Lothian
239
TOTAL UK CAR MARKET:
Volkswagen
Fife
8,955
109,000
1,316,614
Tayside
348
Borders
Dumfries & Galloway
4,222
Vauxhall Corsa
2,490
Ford Fiesta
2,371
Volkswagen Polo
2,329
Kia Sportage
2,273
Ford Puma
2,060
Mercedes A-Class
2,032
Toyota CHR Mini Mini Volkswagen Golf Toyota Yaris
1,990 1,775 1,741
YEAR TO DATE
TOP 10 CARS 3
AVERAGE USED CAR PRICES UP ALMOST 25 PER CENT ON SAME POINT LAST YEAR, SAYS AUTO TRADER The average price of a used car reached £19,254 last week – a rise of almost a quarter when compared to the same period last year. Data from Auto Trader found that in the week beginning October 18, the average price of a used car was up by 24.9 per cent on 2020. The figure also rose by 0.5 per cent on the week before, with vehicles taking an average of 24 days to sell on the online platform. The model with the largest price increase was the Jaguar XK which shot up 44.8 per cent to £28,813. It was joined at the top of the list by the Hyundai i30 which rose by 42.9 per cent to £12,958 and the Land Rover Defender 110
which saw a rise of 42 per cent to £79,816. The top five was completed by the Ford Focus and Kuga which rose by 40.4 and 36.5 per cent respectively. A second-hand Focus now costs an average of £14,418 while a Kuga is likely to sell for £19,721.
That was closely followed by the Bentley Bentayga, which is has an average asking price of £110,946 – a decrease in value of 4.2 per cent.
Article courtesy of cardealermagazine.co.uk
Despite the rising prices, there were still a number of models that saw their values drop. The largest decrease came for the BMW 8 Series, which saw fell by 4.3 per cent to £62,461.
TRADE SNIPPETS Remarketing sector skills shortage extends beyond HGV drivers Read the full article here
Tesla becomes first carmaker to be at valued $1tn Read the full article here
Drivers continue to shun public transport as car dependency reaches 15-year high Read the full article here
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UK Government's Net Zero strategy 'brings clarity' to EV retail plans Read the full article here
Short circuit? Semiconductor crisis continues to take its toll Read the full article here
40-year-old MGB with just 77 miles on the clock set to sell for £30,000 Read the full article here
UK AUTOMOTIVE CAR PRODUCTION FALLS -41.5% IN SEPTEMBER
y British car production falls -41.5% in September with 67,169 units leaving factory gates. y Global chip shortage continues to plague production costing suppliers more than £2.4 billion. y Better news for battery electric and hybrid car manufacturing as almost a third of all cars made in UK are now electrified, a new record UK car production fell -41.5% in September, the third consecutive month of decline, with 67,169 cars manufactured – the worst performing September since 1982 – according to the latest figures released today by the Society of Motor Manufacturers and Traders (SMMT). Output continues to be hampered by the production stoppages caused by the ongoing global shortage of semiconductors as well as the loss of production capacity arising from the closure of one of the UK’s larger plants. While yesterday’s Budget confirmed £817 million of funding for the transition in automotive manufacturing and business rate relief on renewable energy, the industry continues to battle against the ongoing effects of the pandemic. The news comes as SMMT reveals details of its member survey into the impact of the global shortage of semiconductors on the UK automotive sector and its vital supply chain. More than eight in 10 (83%) firms have been negatively impacted by the situation, primarily due to reduced orders, cost
increases, logistical delays and disruption.
Production year-to-date remains marginally
The supply chain has spent more than £2.4 billion to date managing additional costs which are unlikely to be recovered, with most (56%) not expecting supply constraints to improve until the third quarter of 2022 and more than a third (38%) having to reduce operating hours to cope with the challenge.
up, by 3.8%, with 656,776 cars rolling off
Around one in 10 firms have made redundancies and/or restructured their businesses as a direct result of the lack of semiconductors, while some six in 10 (65%) SMEs sought an extension to the Coronavirus Job Retention Schemes, highlighting the fact that, although the pandemic may be receding, its impact on the sector is still pronounced. Despite the ongoing challenges, production of the latest battery electric (BEV), plugin hybrid (PHEV) and hybrid (HEV) cars continues to break records, now representing almost a third (32.3%) of all cars made, equivalent to 21,679 units.1 It means UK car factories have turned out 158,710 alternatively fuelled cars since January. Both production for domestic and export markets fell significantly during the month, down -47.4% and -39.6%, respectively with just 52,872 cars shipped overseas. The decrease in exports was caused by a decline of exactly a third to the EU as well as falls in exports to Turkey, Australia and the USA which dropped -97.4%, -71.4% and -60.2% respectively.
factory lines, which has largely been driven by exports with 82.7% of production heading for markets abroad. However, this does not paint the full picture, with the yearto-date total down -33.5% over the 2019 performance and -44.1% – equivalent to 517,438 fewer units – less when compared to the five-year pre-pandemic average. Mike Hawes, SMMT Chief Executive, said, The substantial decline in UK car output in September continues the worrying trend we have seen over the past three months. The industry is continuing to battle the effects of the pandemic with the shortage of semiconductors stalling production. Whilst there was welcome news in the Budget to support the transition to zero emission vehicle production, battery manufacturing and supply chains, it missed the opportunity to offer meaningful short-term support given Covid-related supply constraints and rising energy bills. This is disappointing given the sector’s importance and its ability to create well-paid jobs across the regions and the revenues it generates, notably from exports.
Article courtesy of www.smmt.co.uk
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SMTA AUTO INSIGHT ISSUE 6 READ IT HERE
WOULD YOU LIKE YOUR GARAGE TO FEATURE IN SMTA’S MAGAZINE? SMTA produces a quarterly magazine to all our members, if you haven’t got one yet our Territory Account Managers will be visiting your garage soon with a copy for you. If you’d like your garage to feature please contact karen.thompson@smta.co.uk
DVSA MOT ANNUAL TRAINING & ASSESSMENT 2021/2022 Book your Training & Assessment today - call us 0131 331 5510 or email pauline.galloway@smta.co.uk We’re pleased to advise there’s no price increase for 2020/21 SMTA member price
SMTA CONTACTS
MEMBERSHIP ENQUIRIES/ TRADING PARTNERS: Norman Stirling – 07917 095014 Membership Development Manager Marcus Lawrence – 07375 057561 Territory Account Manager, Western Region Stuart Kennedy – 07375 057560 Territory Account Manager, Northern Region
MOT QMS ENQUIRIES David Innes – 07789 264228 Operations Manager, Support Services Colin Meldrum – 07917 042576 Support Services Consultant Gordon Laing – 07799 732124 Support Services Consultant
APPRENTICE TRAINING ENQUIRIES Fraser Miller – 07789 264229 Apprentice Training Manager Kevin Millar – 07593 800386 Kickstart Gateway Project Manager
EMPLOYMENT LAW ENQUIRIES Moira Gaynor – 0141 331 5150 Company Secretary/Finance Manager
SCOTSURE WARRANTY: Lynn Greig – 07597 581335 Scotsure Account Manager, Scotland Claims and Enquiries – 0131 331 5512
EVENTS & MEDIA ENQUIRIES: Karen Thompson – 07922 079889 Events & Media Manager
ADVERTISING/SPONSORSHIP ENQUIRIES: Wendy Hennessy – 07974 380140
- £52.00 (plus vat) Non-member price
- £60.00 (plus vat) This bulletin is kindly supported by
Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS SMTA Ltd Tel: 0131 331 5510
www.smta.co.uk
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Disclaimer: Whilst we endeavour to ensure the information in this bulletin is up to date and correct, we make no representations of any kind, express or implied, about the completeness, accuracy, reliability and suitability. Any reliance you place on such information is therefore strictly at your own risk.
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