Data experts at Cap HPI are warning the industry to approach the upcoming months with care as the pressure to meet Zero Emission Vehicle (ZEV) mandate requirements intensifies.
Derren Martin, director of valuations at Cap HPI, said managing supply channels wisely, avoiding market oversaturation, and recognising the limitations of discounting as a strategy to maintain market balance would be crucial.
“Careful consideration and strategic planning from all sectors, particularly OEMs, are crucial for navigating this rapidly evolving market.
“Oversupply in certain channels and aggressive discounting strategies can negatively impact residual values, especially for specific models within those segments. OEMs must target discounts strategically to minimise distress and maintain overall market stability.”
The ZEV mandate, also known as the Vehicle Emissions Trading Scheme (VETS), introduces new challenges for the automotive sector.
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