NFDA’s Driving Automotive 2025 conference took place at Westminster Central Hall in London on Thursday 1 May and brought together leaders across the automotive, finance and technology sectors to explore the challenges and opportunities facing the UK’s automotive industry. With insights from, Grant Thornton, AutoTrader, and others, the event highlighted a rapidly evolving landscape shaped by economic uncertainty, shifting consumer behaviour, the rise of AI, and the increasing influence of Chinese new brand entrants. Economic Outlook: Tariffs, Inflation & Employment Pressures Kicking off the conference, Owen Edwards, Head of Automotive at Grant Thornton, painted a cautious picture of the economic environment. Consumer confidence has weakened due to global instability and rising unemployment, with the UK increasing Employers’ National Insurance contributions in April 2025. The re-emergence of US tariffs on light vehicles, coupled with factory underutilisation, poses global ripple effects – especially for the UK’s downstream automotive sector. While the full impact remains unclear, up to 25,000 industry jobs may be at risk, according to the IPPR. Edwards also noted the complex, state-backed rise of Chinese brands who have entered the UK market, urging retailers to approach new partnerships with due diligence, focusing on financially stable, high-output manufacturers. Changing Consumer Behaviour: Loyalty, Transparency & Experience Bex Kennett, Performance Director at AutoTrader outlined significant shifts in consumer behaviour. Brand loyalty is eroding, particularly in the EV market, with buyers considering a broader range of vehicles – including used models. Nearly 70% of new car buyers visit only one dealership, but their online journey often starts much earlier. Kennett urged dealers to enhance their digital presence, provide clear information, and deliver a seamless online-to-in-person experience. JudgeService’s Neil Addley reinforced this message, during his presentation, noting that younger consumers remain open to new entrant brands and still value services like weekend servicing. Understanding generational preferences and offering tailored service plans were flagged as key opportunities. AI & Technology: From Hype to Business Value AI was a dominant theme throughout the day. Duncan Anderson (Founder at Barnacle Labs) and Lisa Arrowsmith (Chief Product Officer at CitNow) showcased real-world applications of AI – from AI-generated used car adverts and voice-enabled enquiry handling to co-pilots automating back-office tasks. The message was clear: start small, focus on tangible business value, and scale strategically. Pinewood.AI’s CEO Bill Berman stressed that AI’s disruptive power is unlike anything the industry has seen in decades. He argued that while autonomous vehicles may still be a distant dream, AI-driven business transformation is already underway – and essential for competitiveness. Bill also shared valuable insights from the US market, highlighting key lessons that could be applied to the UK automotive sector. Retail Efficiency & Profitability: Doing More With Less Marc Palmer, Head of Strategy & Insights at AutoTrader highlighted the limits of traditional performance metrics, noting that high volumes often lead to thinner margins. Instead, dealers should focus on operational excellence – investing in technology, improving retention, and optimising processes. With new car sales projected to remain flat, the used market represents the key growth area. Kia’s Success Story: Building Growth Through Partnership Paul Philpott, CEO of Kia UK, shared the brand’s journey from a 1.2% market share in 2007 to becoming the UK’s fourth-largest car brand. He credited the success to a consistent focus on profitability, strong dealer partnerships, and long-term brand building – including the now-iconic 7-year warranty. Looking ahead, Philpott cited navigating the ZEV mandate, adapting to new competitors, and managing rising costs as core challenges – all areas where AI will be critical. Conclusion: A Sector in Transition A lot of these themes were echoed during the Profit Panel, where panellists included: Bill Berman – Pinewood.AI CEO Ben Cooper – Managing Director at Impel Paul Hill – Spokesperson at NAMA Catherine Faiers – Chief Operating Officer at AutoTrader Owen Edwards, Head of Automotive at Grant Thornton Panellists emphasised the role of technology and strategic human engagement in unlocking value across the sales funnel. Driving Automotive 2025 revealed a sector at a turning point. While economic and geopolitical uncertainty remain high, the rise of new technologies, evolving consumer preferences, and the emergence of global competitors are forcing retailers and OEMs alike to adapt at pace. Across the board, collaboration, agility, and smart investment in digital and AI solutions were presented as the keys to sustained success in a rapidly transforming market. A special thank you to our sponsors, including AutoTrader. NFDA is proud to have recently joined its initiative, The Facts , which aims to tackle misinformation about electric vehicles. To learn more, please see the link below: plc.autotrader.co.uk/news-views/press-releases/jump-in-affordable-electric-options-the-facts-update/