Automotive update: No sign of clouds on the horizon

I’ve spent the last two months describing the automotive market as being a Goldilocks scenario – neither too hot nor too cold, but just about right. Sales do not have the giddy heights and margins of 2022, but there is still decent demand and a shortage of vehicles.

While some dealers are having to work harder for their sales, the smart ones are using this as an opportunity to review their performance and processes. Due to a couple of fantastic years, a lot of dealers have become complacent. They can just about get away with this in the current market. However, if there’s a sudden decline in demand then they’ll be terribly exposed.

Car dealerships need to be taking a much more critical view of their sales and marketing performance to ensure consistent growth, profitability, and a strong competitive edge. Take a look at our latest web book on how to solve the key challenges currently facing the automotive industry.

This month we’re also launching our quarterly trends report. We’ve looked across hundreds of dealers and anonymised the data to show the direction of travel for marketing strategies in the sector. I’ll be hosting a webinar on 18 April to discuss the trends and how you can leverage the data to improve your strategy.

Headline Autotrader figures

• 2022 stock MoM 0.9% decrease, YoY 5.6% increase
• 2021 stock, MoM 7.1% increase, YoY 7.8% increase
• 2020 stock MoM 17.0% increase, YoY 35.5% decrease
• Total market MoM 4.4% increase, YoY 5.0% decrease

Top 5 brands by market share of 2021 stock

• Ford 9.1%
• VW 8.4%
• Toyota 8.1%
• BMW 7.5%
• Mercedes 7.4%

I trust you have all had a wonderful March and the Goldilocks scenario continues. Though watch out for a lot of upcoming bank holidays which, along with the Coronation, may make the road seem a little bumpy at times.