The pressure is rising for automotive companies and their suppliers to evolve. To realise your growth ambitions, it's essential to develop long-term strategies
The upstream and downstream automotive markets are changing.
The upstream market continues to see further cost down reductions, disruption to the supply chain and shortage of raw materials. The just-in-time approach, historically key to success in the manufacturing industry, needs to be adapted for the current market.
In the next 5-10 years, the downstream market is expected to see more disruption than the previous 50 years. The distribution and retail sector will move to direct sales – the agency model and increased digitalised sales. Digital vehicle finance and subscription services are also anticipated. The growth in mobility-as-a-service (MaaS) will remain an important sector of the downstream automotive industry.
We recognise significant pressure from five key challenges:
- Moving from the internal combustion engine (ICE) to electric vehicles (EV)
- Resilience of the manufacturing supply chain
- Agency model and subscription in vehicle distribution, retailing, and financing
- Cost pressures
- International trade, including the Brexit agreement
Value chain roadmap
You can't look at just one element of the automotive value chain in isolation — the upstream and downstream segments are intertwined. Our extensive knowledge of both segments brings our clients a complete picture of the automotive industry, including potential growth opportunities across the entire automotive market.
Our upstream and downstream specialists work with clients at every stage of the automotive value chain: from assisting businesses within the supply chain to helping dealerships.
We service companies over the life of both passenger and commercial vehicles, including trucks, trailers and on and off-highway construction machinery, excavators, and agricultural equipment.
Automotive review Q1 2023
With further significant change expected, what's the outlook for UK automotive in 2023? In this review you can read insight on the long-term consequences of these challenges, and other updates on the future of the sector.
Why Grant Thornton
Our automotive services range from supply chain through to distribution, retail and usership. With diverse experience of working and operating in the industry, our team understands what you need from advisers to succeed in your unique market.
Our global scale enables us to call on technical experts worldwide, so you get a quality service wherever you need it.