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Thursday, 13 January 2022 23:07

Cox Automotive Makes 10 Predictions for Auto Industry in 2022

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...at a record level, in excess of 280 million. With new-vehicle prices higher than ever, research from Cox Automotive indicates more consumers will be focused on fixing, rather than replacing.

 

Further, while the traditional commute may be a thing of the past, our research shows 50% of Americans expect to drive more in 2022 than they did last year---avoiding public transportation, driving instead of flying, returning to a hybrid work situation. With the added miles, service visits are expected to increase as well. All-in-all, the service lanes should continue to be an important part of the franchised dealer business equation.

 

8: Robust Dealership Consolidation Will Continue

 

While dealership profitability soared in 2021, so did consolidation activity. Tight inventory and rising costs are leading auto dealers to reassess their competitive position and consider the benefits of becoming part of a larger operation. Larger dealer groups have better access to capital, technology and human resource, many experts suggest.

 

According to Cox Automotive research, 59% of dealers expect the consolidation or acquisition trend to continue in the year ahead. This story is far from over and will be one to watch carefully in 2022. 

 

9: Consumer Shift to Online Becomes Dominant

 

While the global COVID pandemic has turned life upside down, it has in fact made the vehicle-buying process more satisfactory. In recent Car Buyer Journey studies from Cox Automotive, two trends are clear.

 

First, consumers are completing more car-buying steps online. Second, overall satisfaction with car buying, and specifically, satisfaction with the dealership experience, has improved.

 

Importantly, consumer preference for online shopping is not expected to wane this year, with 70% of consumers preferring to shop online versus physically going into a dealership, essentially unchanged from 2021.

 

10: Direct-to-Consumer Model Will Force Dealers to Adapt

 

It began in earnest with Tesla's direct-to-consumer sales model, with no franchised dealerships. In 2021, Tesla delivered more than...


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