More than a third (38%) of dealers reveal that their business will struggle to survive without sufficient government support due to the rising cost of energy, according to the latest Forecourt Foresight research from Close Brothers Motor Finance.
Over the past year, the vast majority of people and businesses have experienced financial hits due to the cost-of-living crisis and its inflationary pressures. Forecourt Foresight reveals that 35% of car dealers say their business won’t survive if energy costs remain high and more than half (56%) believe rising energy costs have had a more significant impact on the motor industry than other industries.
Three quarters (74%) of car dealers feel the motor sector has not received enough specialist support throughout this difficult period of economic downturn, and 32% say high energy costs will be the biggest challenge faced by their business over the course of the next year.
The automotive industry has faced challenges, but the latest SMMT manufacturing and sales statistics offer a ray of hope. With the easing of supply constraints and increasing market demand, January 2023 saw a total 131,994 new cars being registered, a figure 14.7% higher than last January’s data.
Lisa Watson, Director of Sales at Close Brothers Motor Finance, said: “For car dealers, the past few years have brought challenge after challenge- the pandemic, war in Ukraine, and Britain’s cost of living crisis. In addition to this, there have been more industry specific complications, such as the global chip supply issues. Our research data highlights the genuine business concerns of car dealers about energy costs and their potentially business impact.
“2023 has brought much more positive sentiment to the industry and it’s important that momentum is maintained, and dealers are supported through business pressures like rising energy costs.”
