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Insight of the Day: Cox Automotive highlights importance of car dealers despite ‘seismic’ industry changes

Car Dealers Remain Crucial Despite Industry Changes, Says Cox Automotive Report

Key Points:

  • Dealers Remain Essential: Despite significant changes in the automotive industry, car dealers are still crucial, according to Cox Automotive's Insight Quarterly report.

  • Shifting Landscape: The industry is experiencing consolidation, changes in manufacturer strategies, and debates around the agency model.

  • Dealer's Role: Dealers provide critical support in the industry's evolution, handling various customer journeys and aftersales support.

  • Adapting to Change: Dealers need to adapt to changing customer needs and prove their value to manufacturers to remain successful.

  • Direct-to-Consumer Brands: Even for direct-to-consumer brands, dealers play a vital role in the buying process, particularly in used car transactions.

  • Investment in UK Market: Companies like Lithia, Penske, and Group 1 are investing in the UK market, indicating confidence in the continued importance of dealerships.

  • Debate on Network Structure: The debate is not about the need for dealers but about the optimal network structure to achieve the best outcomes for manufacturers.


The report emphasizes that while the automotive industry is undergoing significant changes, car dealers remain an essential part of the ecosystem. Their ability to adapt to evolving customer needs and provide valuable services will be key to their continued success in the future.

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