Each time the automotive leadership network (ALN) gathers, the depth of insight across market, policy, and operational fronts makes it well worth the investment of time. This month’s session was no different—a clear picture of an industry balancing optimism with realism, strategy with practicality emerged.

Here are my key reflections from the June session.

Aftersales: Navigating a Changing Car Park

One of the most sobering takeaways is the structural shift occurring within the aftersales landscape. Years of disrupted new car supply due to emissions regulation changes, COVID, and semiconductor shortages have left a gaping hole in the UK parc's 4–5 year age bracket—historically the sweet spot for profitable service work.

With fewer vehicles passing through workshops at peak maintenance age, the growth area has shifted to older vehicles (7+ years), which brings both opportunity and operational challenge. The average revenue per vehicle naturally increases with age, but these cars are often outside OEM networks and require a different approach to engagement.

The broader implication? Franchised networks and service providers must now double down on loyalty, upselling and channel diversification across fleet, leasing, and private customers. Data-led customer retention, more flexible ownership models, and tiered service offerings will become essential tools to plug the profit gap.

Used Car Market: Strong, But More Complex

Despite ongoing macroeconomic pressures, the used car market continues to outperform expectations. Consumer sentiment is more positive than last year, with many feeling more confident about affordability. Site visits and search activity remain high, and used car transactions are up year-on-year.

However, it’s not just about volume—it’s about the mix. Stock is shifting quickly in terms of age and fuel type. Hybrids are increasing, diesels are phasing out, and EVs are gaining momentum. The key challenge is managing this complexity effectively: pricing, merchandising and marketing need to be far more granular than before.

Older used EVs are also starting to recover in value, which is a positive signal, but the 3–5 year age band still faces supply constraints from the earlier drop in new car sales. In this dynamic, retailers who can balance stock mix, pricing intelligence, and speed of sale will be best placed to win.

AI: Practical, Not Hype-Driven

AI is undoubtedly here, but the tone of the conversation has shifted. The most valuable implementation examples aren’t flashy or headline-grabbing—they’re grounded, cost-effective, and ROI-focused.

Key learnings included:

• AI isn’t a strategy in itself—it’s a tool for solving real-world operational problems.
• Successful adoption starts small: automating admin tasks, speeding up internal processes, or improving digital merchandising.
• Governance, ethical boundaries, and data hygiene matter more than ever.
• ROI has to be measured against clear outcomes, especially in low-margin environments.

Interestingly, a recurring message was the need to resist “AI for vanity.” Instead, the focus should be on “AI for sanity”—simplifying systems, empowering teams, and accelerating output where it directly enhances productivity or customer experience. Those trying to implement everything at once are more likely to get stuck in the proof-of-concept loop.

Businesses that align AI investment with real operational pain points and track it like any other capital expenditure project are seeing the most meaningful gains.

ZEV Mandates and the Real EV Transition

There’s now a more pragmatic tone regarding the EV transition. Market data shows clear growth in new BEV registrations (up over 25% year-on-year), with nearly a fifth of all new cars being electric in 2025. However, this is still heavily driven by fleet and business channels; private uptake remains cautious.

The updated ZEV mandate offers more flexibility, including extended hybrid allowances and reduced fines for non-compliance. While this gives manufacturers breathing room, it doesn’t address the root issues slowing adoption: cost, insurance, infrastructure, and perception.

Consumers are still confused. While the benefits (low running costs, clean tech, ULEZ compliance) are widely acknowledged, concerns about charging, depreciation, and practicality remain common.

Now, unified, clear messaging and visible action are needed, especially around charging infrastructure and consumer education. Until then, BEVs will continue to grow—but not at the pace some policy headlines might suggest.

The Macro Lens: Resilience and Risk

The broader macro picture is one of cautious stability. Economic growth in Q1 was more substantial than expected, interest rates are beginning to ease, and consumer confidence is returning—but geopolitical tensions, import tariffs, and supply chain risks remain firmly on the radar.

Automotive manufacturing volumes in the UK are still below historic peaks, and there’s a growing awareness that strategic support, particularly for electrification and battery supply chains, is still needed.

Trade policy and regulatory changes (especially post-Brexit and post-election) will shape the competitiveness of the UK automotive industry in the next decade. Once framed entirely as a climate imperative, the EV narrative is now equally about industrial strategy and national economic resilience.

Final Thought: Operational Discipline Wins

Across every session, one unifying thread emerged: in a market where complexity is increasing, clarity and execution matter more than ever.

Whether it’s aftersales innovation, AI deployment, or EV strategy, the businesses that succeed will be those who:

• Start with a clear problem, not a tech trend.
• Apply discipline to pilot, measure, and scale.
• Invest in people and systems simultaneously.
• Embrace change pragmatically—not unquestioningly.

Transformation is no longer optional, but neither is distraction. The subsequent growth phase will come from doing fewer things, better, with a relentless focus on business fundamentals, not noise.

Have a great week—and here’s to staying agile, grounded, and optimistic.