Infographic: A Peek Under the Hood of the Auto Industry
After two years of a pandemic slump, the auto industry is poised for a comeback. Here, we look at predications for 2022, potential challenges, how consumers are shopping for new automobiles, and how to enhance the buying experience.
IT’S BEEN A BUMPY RIDE
The pandemic hit the auto business hard. Although 2022 is projected to be a better year, sales are expected to remain below 2019 levels.
2019 – 17 million cars sold
2020 – 14.6 million cars sold
2021 – 14.9 million cars sold
2022 – 16 millions cars projected to be sold
PRICES NOT STOPPING DEMAND…YET
Consumers haven’t shied away from vehicle purchases even as prices increased and availability declined.
60% of consumers say price increases have not changed the purchase timelines.
However, consumers are increasingly concerned about affordability.
In 2021, 51% of consumers said that they believe the average price of a new car will increase to a point where ownership could potentially be out of reach.
In 2022, that number increased to 69%.
DIGITAL BUYING ACCELERATES, BUT CONSUMERS STILL WANT A DEALER EXPERIENCE
While consumers still want to see, touch, and test autos prior to purchase, there is room to accelerate the purchase journey through digital touch points.
Consumers spend an average of 19 hours researching cars online.
Their preferred way to acquire a new vehicle:
75% in person
17% partially virtual
6% fully virtual
2% don’t know
Why are consumers buying online?
39% say because of convenience
25% say because ease of use
16% say because of speed
12% say because of necessity
8% say to avoid having to go to the dealership
1% say other
THE INDUSTRY RETHINKS CUSTOMER EXPERIENCE
The automobile industry is rethinking traditional customer experience, with customization becoming valuable to consumers.
Step one: Solving a customer pain point
Step two: Cultivating collaboration
Step three: Meeting customers across channels