With an influx of new brands, the decisions made by dealer group leaders over the next three to five years will shape what the UK automotive “high street” looks like in 2035, says professor Jim Saker, president of the Institute of the Motor Industry.
I was recently asked what I believe is the most challenging job in the UK motor industry today.
It’s an interesting question. The expected answer would probably be the chief executive of a major OEM — perhaps someone leading manufacturing or a national sales company. And on the surface, that would be a safe and entirely reasonable response.
Leaders at established automotive groups such as Volkswagen Group, Stellantis or Ford are facing enormous pressure. They are navigating electrification costs, tightening emissions legislation, supply chain fragility, shifting tariff environments and intensifying competition from Chinese manufacturers.
Many are also losing market share to new entrants. That is undeniably challenging but there is a built-in resilience.
Established OEMs possess decades of brand equity. Customers recognise their names. They have existing databases, loyalty programmes, fleet relationships and long-standing finance partnerships.
Some European manufacturers also may benefit from political support or protective measures against new imports.
Many consumers still prefer to buy a brand they know rather than one whose name feels unfamiliar or newly assembled from a combination of letters.
Provided they can secure competitively priced batteries and maintain a supportive supply chain, heritage brands still have a platform from which to compete profitably.
Shaping the future automotive ‘high street’
In my view, the most challenging role in the UK motor industry today is being the chief executive of a large automotive retail group.
For the first time in over 50 years, dealers are being presented with an unprecedented influx of new or “newish” franchise opportunities. The UK market is seeing rapid expansion from brands such MG Motor (Newish), BYD, Jaecoo, Omoda, Geely, GAC Group and Lepas.
That list will undoubtedly grow.
Each promises strong product, strong EV pipelines, attractive margins, and long-term opportunity. For a portfolio retailer, these propositions are difficult to ignore.
But here lies the complexity. Dealer group chief executives must now answer two fundamental strategic questions:
Which heritage brands do we retain — and which might we exit?
Which new entrants will succeed not just in the next 12 months, but over the next decade?
This is not a short-term volume decision. It is a multi-year capital allocation decision.
There is limited UK retail history for many of these new entrants. Residual values are unproven. Long-term manufacturer commitment is still being tested.
Yet franchise agreements, property investments and staffing decisions lock retailers into long cycles.
The decisions made by retail group leaders over the next three to five years will shape what the UK automotive “high street” looks like in 2035. Which brands have physical representation, which disappear and how multi-brand sites will evolve.