The global automotive industry continues to grow. Customer demand is increasing and in response, several strategies have been implemented by automakers including mass production along with product innovation and various marketing techniques.
In Gibraltar, both local and foreign sales have increased with the latter being the main driver in the automotive industry’s continued growth. This is mainly due to local car dealerships establishing key relationships with popular and reliable automotive manufacturers and benefiting from the sale of vehicles abroad without the need to pay any duty on foreign sales. This is provided that certain conditions set out by HM Customs are met. IN servicing larger customer demands it is important that entities develop and retain strong inventory and security controls and establish a strong logistics network.
Nevertheless, the global and local automotive industry is still facing some important challenges. It is important that companies assess these risks and ensure that they take medium to long term measures addressing these concerns.
PwC has extensive expertise in providing a wide of services to clients in this industry, including assistance in ensuring that entities are well positioned in the long term to deal with volatility in sales volumes.
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