Part 8/11:
Dealerships are increasingly turning down vehicle allocations, indicating weaker demand, and manufacturers are adjusting production and sales expectations accordingly.
Structural Shifts and Industry Resurrection
The traditional dealership model faced upheaval even before these recent trends, but the current downturn accelerates its transformation. With EVs gaining popularity, the dealership network's reliance on high margins, add-ons, and service-based revenue faces scrutiny. Moreover, global manufacturing costs are rising for internal combustion engines due to regulatory and material costs, while EVs become cheaper to produce annually.