Last week, The Colonial Motor Company outlined a series of challenges the firm is set to face in the future at its 104th annual meeting.
The company’s chair, Ashley Waugh, indicated that the mid-term economic outlook is “increasingly fragile” and has become a cause of concern.
“Our world is always changing and without sounding too pessimistic, the mid-term economic outlook appears increasingly fragile,” said Waugh.
“This is against a backdrop of sustained global unrest and stubbornly high inflation.”
It is stated that both of these factors may have potential consequences for New Zealand and the global economy.
“Economic stimulus, global events, low unemployment and restricted supply have provided favourable trading conditions for the last two years,” Waugh added.
“Consequently, the social and economic price for persistently high inflation will eventually fall due. When this might happen and the severity of any impacts remain the topic of much debate, but history tells us the tide can turn quickly.”
Regardless, Waugh reassured that the company has a “robust balance sheet, a substantial property portfolio and long-term strategic partners,” inspiring confidence going forward.
Waugh also addressed the emergence of multiple Chinese electric vehicle rivals The Colonial Motor Company is keeping its eye on.
“The global shift in direction to electrified vehicles is as much about reducing emissions as it is about competing and ultimately dominating a new era of technology,” he said.
“The race, to secure supplies of raw materials and increase production capacity to manufacture EVs, will continue to play out over the next decade. This race will likely, and frankly is, seeing the emergence of a number of Chinese brands as credible alternatives to traditional names, particularly in the value segments.”
Waugh states that the entry price for EVs was expected to be moderated by improving technology and the benefits of scale as production ramped up.
However, lower prices have been faltered by raw material scarcity and the resulting increasing prices.
“The brands we are partnering with are all investing in next generation product and technologies that will continue to come online over the course of the next few years and beyond.
“There will continue to be supply challenges, particularly on the availability of electric product globally and that will cause a few bumps on the road. However, for our staff and as a company, it is an exciting time embracing and preparing for a new era of automotive technology.”
Looking ahead, The Colonial Motor Company projects strong demand but warns of possible disruption and ongoing uncertainty.