13 Automotive Industry Trends in 2024

Buyer Habits

How do you increase your auto dealership sales? Know exactly who is buying, what they want, and where to find them.

1. Customer Loyalty and Pricing

Topping the list of automotive industry trends is the importance of a diverse product offering. Automakers are adapting to consumer perceptions of pricing and brand loyalty, emphasizing the importance of offering a balanced portfolio that includes both higher-end products and entry-level trims to meet varying customer preferences and budgets.

2. Resurgence of Leasing

Toyota is leading the way in reviving leasing options to drive sales, aiming to increase leasing penetration rates to above 30 percent, offering dealerships an additional avenue to attract customers with affordable financing options.

3. Generation Z’s Purchasing Power

With Generation Z entering the workforce and having significant purchasing power, dealerships are adapting their sales strategies to cater to this demographic’s preferences and buying habits.

4. Navigating Economic Uncertainty

Dealerships are navigating economic uncertainty, driven by factors such as inflation, supply disruptions, and changing consumer behavior, underscoring the need for agility and proactive financial planning to mitigate risks and seize opportunities.

Marketing

Dealership digital marketing was a popular topic at the NADA Conference, specifically how to automate it. Here are the car industry trends surrounding high-level marketing.

5. Global Market Focus

Automakers like General Motors are shifting their focus to global markets, including regions like China and Europe, to evaluate strategies and operations abroad, presenting opportunities for dealerships to expand their offerings and market reach.

6. Retail Sales Strategies

Dealerships are reassessing their retail sales strategies to adapt to changing consumer preferences and market dynamics, focusing on personalized customer experiences and offering a mix of traditional and digital sales channels.

Electric Vehicles

EVs are at the top of everyone’s mind this year, and not just because of all the Form 15400 updates as of late.

7. Continued Focus on Electrification

Automakers are prioritizing the development and launch of electric vehicles (EVs), presenting dealerships with opportunities to expand their offerings in response to growing consumer interest in EVs.

8. Diversity of EV Portfolio

Automakers like Kia and Mercedes-Benz are introducing more affordable electric models, including subcompact crossovers and sedans, aiming to make EVs more accessible to a broader consumer base.

9. Importance of Plug-in Hybrids (PHEVs)

Dealerships are recognizing the value of plug-in hybrids as a transitional step towards full electrification, appealing to consumers concerned about range anxiety and limited charging infrastructure.

10. Infrastructure and Charging Access

Efforts to address charging infrastructure gaps are underway, with the government and industry stakeholders collaborating to improve access to charging stations, alleviating consumer concerns about EV range and charging availability.

Manufacturer Promises

Straight from the manufacturers themselves: what to expect from your relationships with them, how legislation impacts your store, and how their plans will impact your dealership in 2024.

11. Dealer-Manufacturer Relationships

Tensions between dealerships and automakers persist, highlighting the importance of fostering strong relationships and open communication to address concerns related to sales standards, direct sales models, and compliance with franchise laws.

12. Legislative Challenges

State dealer associations are actively engaged in addressing legislative challenges, advocating for stronger franchise laws to protect dealerships against emerging sales models and ensuring fair competition between retailers and automakers.

13. Strategic Sales Initiatives

Automakers like Toyota and Lexus are setting ambitious sales targets for the year, encouraging dealerships to focus on regional and model-specific leasing to stimulate sales growth.

Dealership Consultants Staying Up-To-Date on Automotive Industry Trends

Education is what keeps you flexible. That’s why our consultants stay up-to-date on the latest news and trends in the automotive industry, to pass on to our clients, so we can help you make informed decisions. You’re running your business, so let us be an extra set of eyes and ears to drive you toward success.