Covid - Current landscape release 22
![landscape car](https://tide.theimi.org.uk/sites/default/files/2020-09/group-cars-630x420.jpg)
The aim of this report is to outline the current landscape for businesses operating in automotive retail, highlighting the economic impact and operational challenges that the COVID-19 pandemic has created. Release 22 incorporates the most recent ONS BIC data issued on the 6th July 2021.
Key take away points
- The proportion of businesses open and trading has increased from 94% to 95%. Fortunately, the number of businesses reporting to have permanently ceased trading remains low at approximately 1%. This is also the case this reporting there being no reports of automotive businesses being insolvent
- In terms of turnover, indications are that the automotive sector continues to perform well compared to other sectors, having the highest % of businesses reporting an increase in turnover in the last 2 weeks (20%). However, this increase is likely due to the other ‘retail sectors’ included in the ‘Wholesale and Retail Trade; Repair of Vehicles and Motorcycles’ sector such as supermarkets and online retailers such as Amazon.
- The proportion of those who said that their cash reserves would last more than 6 months has increased from 45% to 48%. However, business confidence has dropped this reporting with 11% stating that they had low or no confidence that their business will survive the next 3 months, this has increased by 5% since last reporting.
- The proportion of those on furlough continues to fall from 7% to 4%. The number is currently the lowest since the scheme was fully introduced at 23,600.
- 25% (171,100) of automotive workforces are still reporting to be primarily working from home. New questions included regarding business future thoughts on the homeworking model indicates that 19% of automotive businesses said that they did intend to use increased homeworking as a permanent business model going forward. The most popular reason given as to why, was improved staff wellbeing (87%), followed by increased productivity (47%). However, 58% of automotive businesses said that they did not intend to use increased homeworking as a permanent business model going forward. The most popular reasons given as to why were that they were not suitable for their business (78%), followed by reduced communication (24%), and negative impact on working culture (23%).
- Another new question was added to the survey asking about plans to reduce emissions, which included plans around EV. 4% of businesses in the UK are electrifying their vehicle fleet and 3% are installing charging points. A further 5% are planning electrifying their vehicle fleet in the next 12 months.