Summary of 2025 for the motor trade industry
Dealers have described 2025 as one of the most contradictory years they can remember. Some showrooms have been buzzing with record order levels, while others have spent the year wrestling with supply, strategy and rising costs. Even so, a clear pattern has emerged. Chinese brands have been the surprise force behind headline volumes, older vehicles have reshaped the workshop diary and used cars and aftersales have once again done the heavy lifting for profit.
Chinese brands lift dealer margins
Several dealer groups spoke about the impact of new Chinese brands arriving with well specced models, sharp pricing and quick decision making. FG Barnes said the interest from customers has been remarkable, with new brands providing the standout profitability in a year where many traditional franchises struggled.
At the front end, some retailers compared the pace of orders being placed to the old scrappage days. Omoda and Jaecoo in particular created queues of customers attracted to simple finance terms. Dealers said they were not so much selling the cars as processing orders. Other groups, including Greenhous, reported that Chinese OEMs have been the main driver of profit across the year, especially when legacy brands only produced margin if quarterly targets landed.
Legacy brands find it harder going
While Chinese brands have surged forward, some long established marques have delivered thinner results. Dealers have been reshaping networks quietly in the background, walking away from brands whose product cycles or national volumes no longer make site economics work. Suzuki and Citroën were repeatedly mentioned. With shrinking ranges and inconsistent supply, there simply was not enough metal arriving to sustain a full team.
Premium dealers have also felt the strain. Price inflation has pushed some models far beyond what used to be typical entry points. That has narrowed the audience and encouraged retailers to focus more on the areas they can control. Used cars, part exchanges and personalised customer treatment have become central parts of maintaining consistency.
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Older cars reshape the year
One of the biggest shifts has happened in the make up of the car parc. Many groups now expect their largest pool of vehicles to be older cars. Younger segments of the vehicle market have shrunk as new cars have grown more expensive and customers have stretched replacement cycles. This change has put significant pressure on workshop capacity, technician availability and parts supply.
The used car market has stayed strong, helped along by part exchanges coming from customers moving into new Chinese models. Dealers welcomed the quality of this stock. It reduced auction dependency and helped sales teams maintain momentum throughout the year.
Aftersales hold everything together
Aftersales has been the most reliable part of the business for many groups. Eden Motor Group is a good example. After two difficult years, they returned to profit by tightening processes, trimming non essential perks and sharpening up warranty and courtesy car policies. Leaner teams and smarter systems helped stabilise performance.
Other groups warned that MOT demand is rising faster than ramp capacity. Some have already restricted standalone MOT bookings, encouraging customers to pair them with other work. It keeps the workshop available for higher value jobs.
EV servicing has also created tension. Longer service intervals reduce natural touchpoints and technicians need new skills. Dealers are looking at interim checks and battery assessments to maintain customer contact.
Costs continue to dominate
If there has been one non negotiable pressure through 2025, it is cost. National Insurance changes have significantly reduced margins for many and created sudden holes in staffing budgets. Family owned groups have felt this acutely, especially where long serving technicians are ageing and productivity naturally shifts. Many leadership teams have focused on culture and communication to guide staff through these changes without losing trust.
Looking into 2026
Most dealers seem cautiously positive. Chinese brands are likely to keep expanding. Older vehicles will keep workshops busy. EV adoption, technician capability and OEM supply strategies remain the big variable factors.
There is a quiet confidence though. Many believe the fundamentals still hold. Focus on used cars, aftersales, culture and customer treatment. Products will rise and fall. What matters is how dealers adapt and how well they stay connected to their customers.
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