The automotive industry has experienced unprecedented disruptions, with nearly every automaker forced to adjust its production schedule in major ways. Auto parts shortages and supply chain issues, combined with strong consumer demand, have caused vehicle inventories to plummet to record lows. Although economists predict that the global economic recovery will continue and that the global GDP will increase by 4.7% in 2022, supply constraints may continue to hold back the production of new cars well into 2022. However, despite microchip shortages and continued low inventory, the 2022 automotive outlook reveals growth opportunities, thanks to pent-up consumer demand.
From increased production of electric cars to a rise in digital automobile sales, Safeguard’s automotive marketing experts can help you identify and make the most of these growth opportunities.
Online Car Shopping is Surging
The shift to online car shopping represents a tremendous opportunity for auto dealerships. Rates of online shopping surged during the last year as consumers became more comfortable shopping online in a wider breadth of categories, including car shopping. Prior to the pandemic, less than 2% of vehicles were purchased online, yet 2020 saw that number jump to nearly 30%.
At the same time, an automotive study showed buyer satisfaction reaching an all-time high, with online purchasing proving to be much more efficient and less time-consuming for buyers. When shopping online, customers can shop at their convenience, input their vehicle of choice, select their features, and get the financing they need.
Valued at $237.93 billion in 2020, the global online car buying market is expected to grow to $722.79 billion by 2030, representing a compound annual growth rate (CAGR) of 12.2%. As consumers increasingly shop online for cars, auto dealerships will want to seize this growth opportunity and invest more in digital platforms for traffic.
In order to seize upon this opportunity, many dealerships offer potential buyers the convenience to conduct an at-home test drive as well as provide home delivery of the vehicle they purchase. Although the way people shop for cars is changing, the automotive marketing experts at Safeguard can help you with specialized digital marketing strategies to reach potential buyers.
Electric Car Production is Increasing
In 2020, there were nearly 1.8 million electric vehicles registered in the U.S., three times the number from 2016, according to the International Energy Agency. By 2030, it is expected that there will be over 18 million electric vehicles in use. And while only 7 percent of U.S. adults said they currently have an electric or hybrid vehicle, according to a recent Pew Research survey, 39 percent said they were likely to seriously consider an electric vehicle as their next new vehicle purchase.
Almost every major car manufacturer, including Ford, General Motors, Honda, BMW, Volkswagen, and Hyundai, has announced detailed plans for electric-vehicle adoption, with diverse lineups ranging from SUVs to supercars. Some of these companies have set exceptionally bold deadlines for their electric vehicle production, including a handful who have pledged to only sell EVs by 2030.
Despite shortages and inventory woes on many new vehicles, nearly 100,000 EVs were sold in the 3rd quarter of 2021, representing a year-over-year increase of more than 44%. Of course, as the world goes electric, there are challenges specific to marketing EVs. Safeguard’s automotive marketing experts can help you with innovative marketing for electric vehicles.
Global Economic Recovery Continuing
New vehicle sales slowed in 2021, as disruptions in the microchip supply and general supply chain issues caused automakers to close plants for weeks at a time. While the auto industry will continue to face supply shortages into 2022, the global economy is set to grow by 5.6 percent in 2021, generally surpassing early expectations, with some predicting that 2022 will see a return to normal economic conditions.
It will be up to auto dealerships to capitalize on product innovation and advancements in digital advancements. As new vehicles become more sophisticated, automakers increasingly think digitally first. More innovative cars need more creative marketing, with everything from interactive print to specialized digital marketing strategies.
The automotive industry has been facing considerable challenges, but the 2022 automotive outlook indicates several trends and opportunities moving forward. Whether it’s digital marketing for increased online sales or full-color print marketing to separate yourself from the competition, at Safeguard, our automotive marketing experts specialize in engaging and effective solutions to help you leverage these growth opportunities. Your advisor will learn about your unique goals and then help you with personalized solutions that fit your business and drive your success. Call 844-4CARBIZZ to get started.
- The 2022 automotive outlook reveals growth opportunities, thanks to pent-up consumer demand.
- The shift to online car shopping represents a tremendous opportunity for auto dealerships.
- Car manufacturers are increasing their electric vehicle production and developing diverse lineups.
- Safeguard’s automotive marketing experts can help you identify and make the most of 2022’s growth opportunities.