Automotive Business Magazine – Q2 2026 – Digital edition - Magazine - Page 69
FEATURE
INDUSTRY OUTLOOK
just on headline targets or launch
announcements.”
A further challenge has been found in
the wider economic picture. Since the
Covid-19 pandemic in 2020, recovery has
been slow but steady for the automotive
sector. The commercial vehicle market, in
particular, is influencing this recovery.
According to Golding: “The market
is continuing the slow recovery seen
since the pandemic, and we’re likely to
experience further but limited growth
in 2026.
“Fleet is very much making the
running, especially when it comes
to electrification, and retail demand
remains relatively sluggish with
consumer confidence still low."
Nevertheless, this recovery is not a
given. Golding adds: "Unpredictable
downside risks also shouldn’t be
dismissed – another round of ‘Trump
tariffs’ could create considerable
instability, for example.”
Taking from 2025
The three major factors from 2025 that
the industry wants to see continue are:
road safety strategy action, upskilling
in the fleet sector, and the positive
transition to alternative fuels.
The Road Safety Strategy released by
the Government in early January laid out
multiple focus areas, such as an increase
in vehicle safety technology, lowering the
drink drive limit, and mandatory eyesight
testing for drivers over 70.
FleetCheck has been promoting fleet
risk management by emphasising
best practice, and it would like to see
the Strategy’s measures implemented
as soon as possible. Golding adds:
“Implemented correctly, they should help
drive down accident rates for people
driving at work still further.”
A big headline in 2025 was the skills
shortage. The Institute of the Motor
Industry (IMI) called for the Government
to address this shortage with a reform to
the Apprenticeship Levy.
Fleets were also dealing with this by
upskilling.
Hollick says: “Through our AFP Fleet
Academy resource, we’re booking
increased numbers of training days and
are introducing new courses as fleet
managers look to boost their capabilities
and the value they add for their
employers. Ours is a fast-moving sector
and our members are upgrading their
abilities accordingly.”
Finally, the UK’s transition into
alternative fuel has trickled into almost
every area of the automotive industry,
including charging and the fleet sector.
It is forcing the industry to keep pace
with modern technology, especially with
innovative brands coming into the market
and challenging the status quo.
However, it would be remiss not
to acknowledge the tough economic
landscape the industry is facing, along
with strict Government mandates.
Bengtsson says the growth the industry
saw in 2025 is encouraging, but adds:
“Both businesses and consumers are
holding back on switching to electric
in many cases, as they are waiting for
the next generation of technology to be
released.
“Most new products that are released
feature more innovation, such as vehicleto-grid (V2G) charging capability and
much more.
"This innovation will continue going
forward, which is incredibly exciting for
the industry, and it bodes well for the
future, but the pace of EV uptake may
slow as consumers and businesses await
the right moment to make the switch.
“The EV sector is attractive for startups and entrepreneurs, particularly from
other industries such as tech, who can
help change the industry fundamentally
and at speed.”
A year of change
2026 will see new entrant OEMs continue
to reshape the car market, with the
potential for historic implications, while
the push to electrification could see this
year lay the foundations for progress
that fundamentally alters the population’s
relationship with driving.
Meanwhile, AI and automation is – for
better or worse – taking hold of every
aspect of life, and it is no different
in the automotive sector, from in-car
entertainment to organising workshop
workflows.
This is a market on the cusp of
transformation, and the businesses that
succeed – across the full gamut of fleet,
leasing, retail, workshops and more –
will be those that can adapt quickly to
unexpected bumps in the road.
Q2 2026
AUTOMOTIVE BUSINESS
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