June update: steady on the surface, shifting underneath

Talking to customers and partners across the trade, the consensus is clear: June was a Goldilocks month. Not too hot (weather aside), not too cold – just about right.

Strong new car offers, driven by fierce competition and growing pressure from Chinese manufacturers, helped keep the market moving. At the same time, a shortage of quality used stock continues to underpin pricing.

For many dealers, that combination made June a solid month.

As ever, however, performance depends heavily on the brands you represent.

The growth of new Chinese entrants is a clear signal that consumers are becoming less brand loyal. That poses a challenge for retailers tied to heritage brands that are losing share, even in a rising market. SMMT figures to the end of May highlight this shift: Fiat registrations fell from 5,379 last year to 2,926 this year, Nissan declined by 6,417 units, and DS dropped sharply to just 68 cars, down from 371.

This is more than a dip – it points to a meaningful shift in where demand is going.

Falling new car volumes create a double impact for retailers. Not only does it make manufacturer bonus targets harder to achieve, but it also restricts the flow of part-exchange vehicles, often the lifeblood of a profitable used car operation.

By contrast, dealers aligned with fast-growing Chinese brands are benefiting on both sides of the transaction. They are driving new car volume while also generating a steady supply of quality part-exchange stock, creating margin opportunities throughout the deal cycle.

In other words, they are winning both the sale and the follow-on opportunity.

For retailers facing underperformance in heritage brands, all is not lost. Some are adopting a “cuckoo” strategy, introducing a Chinese brand alongside an existing franchise. If successful, the newer brand can grow rapidly and rebalance performance over time.

The encouraging news is that customer demand remains. Buyers are active, but more selective. They are shopping around, comparing offers, and becoming less attached to traditional badges.

Demand hasn’t disappeared – it has become more competitive.

In this environment, execution becomes critical. Dealers need to be on top of every enquiry. Speed of response, quality of follow-up and overall customer experience matter more than ever.

As brand loyalty weakens, the dealer experience increasingly becomes the differentiator.

That also means having a clear view of every interaction, not just whether a lead came in, but how it was handled and what happened next.

This is where attribution is vital. Retailers need a clear understanding of which channels are driving enquiries, which leads are converting, and where opportunities are being lost. Without that visibility, even a “good” month like June can mask missed revenue.

Bridge this gap, connecting marketing activity directly to inbound calls, leads and sales outcomes – giving a complete picture of performance across every channel.

June may have been a Goldilocks month, but not for everyone. Customers are out there. The real question is whether dealers can identify what brought them in – and, crucially, whether they can convert them.

Because in a market where brand loyalty is no longer guaranteed, the dealers who win will be the ones who understand and act on their data fastest.

Author: Harry Bott