Where the market environment stands now
The momentum behind EVs is undeniably growing. Globally, the sale of electric vehicles more than doubled in 2021, with some countries far ahead of that trend. Norway is at the top of the list, with 81 EVs per every 1,000 residents. In the UK, which comes in 6th, the percentage of purchased EVs increased by 76% between 2020 and 2021. China’s EV sales tripled between 2020 and 2021. The United States is not finding EV sales to be increasing quite as swiftly as in Europe or China, but sales are strong — and growing. The percentage of plug-in vehicles (both hybrid and electric) purchased in the US increased by 68.9% between February 2021 and February 2022. It’s tempting to believe that the car buyers of the world will collectively and altruistically decide to buy EVs to limit carbon emissions, but there are actually many factors at play as consumers decide whether or not to embrace electric vehicles.
It’s nearly impossible to keep track of everything dealerships need to be concerned about in 2022. Between supply chain issues and chips shortages, skyrocketing gas prices, the rise of electric vehicles, online vehicle shopping, and soaring prices across the board, nothing seems to be going quotes as planned.
Navigating your dealership through all of this chaos is nearly unthinkable — unless you’re staying informed about the latest industry trends and forecasts.
In this article, we’ll explore what’s been happening nationwide with used car prices, share expert predictions for what’s next, and demonstrate how targeted vehicle data can help you navigate these price changes.
Why is understanding the automotive market share in your area important?
Automotive market share is simply the distribution of total vehicle sales in your area by dealership—each dealership makes up a percentage of total sales in the market. Understanding who your competitors are, and where you stand in relation to them, can help you develop new marketing strategies, and increase your slice of the automotive market share pie.
2022 is set to be a rollercoaster year for the automotive industry. Coming out of the pandemic, people are ready to drive again — but we’re also facing massive supply chain issues, restricted buyer budgets, and higher-than-ever gas prices.
Accounting for all these factors will require skilled, specialized auto marketing. That’s why we’ve compiled the top eight automotive industry trends in 2022 so that you can create informed, savvy digital marketing campaigns for your dealership.
When working in digital marketing for car dealerships or specialized auto marketing, it’s imperative to know that every dollar you spend on advertising is producing a worthwhile ROI.
Take a look at the facts: in 2021, the US spent $13.29 billion on automotive digital marketing with an average of $205 spent per lead. That’s an outlandish price point, especially considering that the average buyer conversion rate in the auto industry is a measly 2.0%.
The past year saw the closure of thousands of dealerships across the United States. Now that we’re starting to recover, the power struggle between online sales and revitalized dealerships is more fraught than ever.
Surveys suggest that 18% of auto buyers would buy sooner if there were an online purchase option available to them. Today’s customers are also more informed, more cautious, and even more determined to find the best deal.
According to The Annual Automotive Franchise Activity Report, the number of new-car dealerships in the United States has fallen for the first time since 2013.
On a national scale, this decrease is probably no reason to panic. But for small dealerships all around the country, this statistic may feel like the canary in the coal mine. With city and state migration higher than ever, population numbers are in flux. Far too many businesses have been forced to shut down due to the lack of demand in their areas.
How do you resist these sorts of stats in order to stay afloat within the automotive industry? Well, the real answer is you don’t. Instead you use them to your advantage.
The auto sales industry is not new to disruptions and rapid shifts. The past five years alone saw major economic fluctuations, the birth of ride share apps, and the growth of online automotive sales. Still, the dealership model remained strong.
Then the COVID-19 pandemic hit. Overnight, traffic dropped over 70% in major cities and worldwide manufacturing ground to a halt.
With vehicle brand ads consuming over 60% of commercial air space in the USA, it’s easy to assume the new car market is on the rise. The truth, however, is that the used car market is now nearly twice the size of its shinier counterpart—with no sign of slowing down.