As 2023 approaches, it is important for dealership owners and leaders to stay up-to-date on the latest trends in the automotive industry.
According to research powered by Cox Automotive’s DRiVEQ, the largest breadth of first-party data in the automotive ecosystem, experts have concluded a list of expected forecasts that will change the auto dealership landscape in 2023.
Decrease in Total Retail Vehicle Sales Predicted for 2023 Due to Uneven Growth in New and Used Sales
New vehicle sales are expected to continue growing at a slower rate than used vehicle sales in 2023. The gap between new and used sales is predicted to widen, leading to an overall decrease in total retail vehicle sales.
According to Edmunds, a leading source for car shopping, new vehicle sales are predicted to increase by 7% in 2023 due to pent-up consumer demand and rising inventory levels. They estimate that 14.8 million new cars will be sold in 2023, as compared to their 2022 estimate of 13.8 million new vehicle sales.
Greater Emphasis on Service and Parts Departments
Dealerships are expected to put greater emphasis on their service and parts departments in 2023. The automotive industry is shifting towards services-based revenue models, and dealerships need to be prepared to capitalize on this trend.
This means investing in service technicians, improving service centers, implementing advanced technology tools such as online scheduling and appointment reminder systems, and utilizing a customer relationship management (CRM) system.
Dealerships Meet Growing Consumer Demand of Electric Vehicles
As the demand for electric and autonomous vehicles grows, dealerships will need to be prepared to offer these types of vehicles and educate sales staff and customers about their benefits.
In addition, dealerships will need to adapt and be prepared to service these types of vehicles. This will require training for sales staff and technicians, as well as investments in the necessary infrastructure and equipment.
Sustainability is becoming an increasingly important factor for consumers when choosing a vehicle. Dealerships offering eco-friendly options and demonstrating their commitment to the environment will be well-positioned to attract environmentally conscious customers.
How Data Analytics is Changing the Auto Dealership Landscape
Gone are the days of one-size-fits-all marketing campaigns. Dealerships should use data and customer insights to create personalized marketing strategies that speak to the individual needs and interests of each customer.
Artificial intelligence (AI) and data analytics are being used more and more in the automotive industry to improve the customer experience, streamline operations, and make better-informed decisions. Dealerships that can effectively utilize these technologies will be able to gain a competitive edge.
Virtual and augmented reality technologies can be used to enhance the dealership experience in a number of ways, from virtual test drives to interactive showrooms. Look for these technologies to play a larger role in auto dealerships in the near future.
Overall, the dealership landscape in 2023 is expected to be heavily influenced by the increasing role of technology and the shift toward more sustainable and innovative business models.
Dealership owners and leaders who can adapt to these changes and stay ahead of the curve will be best positioned for success.
Want to talk more about auto dealership trends and how they impact you? Give us a call at 1-800-659-9501, visit our website at www.autopeople.com or email us to discuss what Autopeople can do for you.