I’m currently in Italy on holiday, enjoying a rest from the unremitting doom and gloom being peddled by all news outlets.
Added to the hot weather spell, anyone would think that the end of the world is nigh! Whilst it can’t be denied that people are tightening their belts, the end of the world has most certainly not arrived in automotive retail.
The last month seems to have performed like a typical July. Compared to last year it looks distinctly poor. But last year was an exception that did not prove a rule. However, we are seeing the following distinct trends emerging:
- The premium brands are faring better than the ‘volume’ brands. This is a traditional reaction during tough times as there is a flight to quality, and those who have spare income are less affected by external events.
- There is definitely a regional bias beginning to show, especially in the more northern regions of the country. This is where the inflationary effects are beginning to bite for people with lower to middle income levels.
Despite these effects, due to nearly two years of extremely tight new car sales, this has meant that the overall market continues to be in a good shape with regards to supply and demand. This allows dealers to keep up their margins and profitability. So although we may be sweltering this summer, the end of the world has not arrived.
Retailers still need to be able to react quickly to keep stock moving. Accurate, real-time data is needed by dealership marketing teams to:
- monitor changes in demand,
- understand where their enquiries are coming from,
- avoid being caught out by significant swings in the market.
Closely tracking these metrics, trends, and opportunities is vital to ensuring that you’re able to adapt swiftly. Getting to grips with what your prospects are searching for, and what they’re saying when they call you is more important than ever.
Headline Autotrader figures
- 2022 stock, MoM 25.30% increase, YoY 55.5% decrease
- 2021 stock, MoM 2.9% increase, YoY 14.9% decrease
- 2020 stock, MoM 1.7% decrease, YoY 2.9% increase
Top 5 brands by market share of 2021 stock
- BMW 11.3%
- VW 10.4%
- Audi 9.9%
- Ford 6.7%
- Toyota 6.4%