THE AUTO INDUSTRY FROM A GLOBAL PERSPECTIVE
The car sector is in transformation as we approach the end of 2021. Looking ahead to 2022, now is an excellent opportunity to take a top-down, worldwide look at the car sector. Over the last few years, we have been impacted more than most other industries in the United States. While people continue to purchase automobiles, the manner in which they do so has altered considerably as a result of the COVID-19 epidemic, new technologies, and other causes. We’ll tell you everything you need to know about the auto industry’s worldwide outlook and how to position your dealership for success in the months — and years – ahead.
OBJECTIVES FOR THE AUTO INDUSTRY IN 2021
Following a tumultuous few years in the industry, there are several major concerns and trends to be aware of that are affecting car buying and selling, including the COVID-19 pandemic and the chip scarcity.
employee at an auto dealership
COVID-19 PANDEMIC IS STILL ONGOING
The ongoing COVID-19 epidemic has had a significant impact on the car sector. Many of the industry’s contributors were forced to shut down, stop exporting, or close their borders. The inability to create new vehicles for sale has been hampered by disruptions in Chinese parts exports, large-scale manufacturing disruptions across Europe, and the shutdown of assembly factories in the United States.
SHORTAGE OF CHIPS
The supplies needed for chip fabrication remained unavailable for months after many firms closed. A scarcity of computer chips resulted as a result of this predicament, which was compounded by growing demand for consumer devices. Due to a chip shortage and the ongoing COVID-19 epidemic, Toyota will produce around 40% fewer cars and trucks globally in October. Many experts believe that vehicle production will not resume at full capacity until 2023.
TURN ON THE ELECTRICITY
The transition to electric fleets and batteries is another long-term development to keep a watch on. Electric vehicles and plug-in hybrids are becoming increasingly popular. GM declared earlier this year that by 2035, it intends to offer entirely zero-emission vehicles. Jaguar unveiled a similar idea later that year, albeit with a far shorter timescale of 2025. While this trend may take some time to materialize, it is one that car dealers should be aware of in the future.
SUPPLY TO THE AUTOMOTIVE INDUSTRY
In recent years, supply has taken a major, if not catastrophic, hit. The epidemic of the coronavirus caused a significant halt in new car production. Due to a dip in economic activity and travel restrictions imposed as a result of the COVID-19 epidemic, global automobile production fell substantially in 2020. According to the International Organization of Motor Vehicle Manufacturers, manufacturing in North America has plummeted by more than 20%.
DEMAND IN THE AUTOMOTIVE INDUSTRY
However, as automobile output has decreased, vehicle demand has soared. Many people demand their own form of transportation as a result of the pandemic. This suggests that a large number of individuals still desire to buy cars right now. Consumers who are in a position to purchase a new car are looking to upgrade to larger vehicles with the most up-to-date comforts and technologies.
As a result, demand for new vehicles is exceeding supply. This is unlikely to change in the near future. As you may know, this is good news for auto dealers because it allows them to charge greater prices for the automobiles they do sell, resulting in a larger profit margin.
Charging an electric vehicle
THE AUTOMOTIVE INDUSTRY’S FUTURE
Don’t get bogged down in the past. To be successful, you must analyze the current status of the automotive business and how it influences the future of your dealership and the industry as a whole.
To begin, understand that digital retail is here to stay. Even if they do wind up visiting a dealership in person to finalize the transaction, car buyers are spending time researching vehicles and their purchases online before signing the paperwork.
This means that consumers are better informed than they have ever been. They’ll almost certainly know exactly what they want before they ever enter your store. They’re doing their homework online, looking into automobiles and dealerships in advance. This means that embracing new technology, such as text messaging with leads and using live video conferencing to show off your inventory, can help you sell more cars.
The only way to succeed today is to recognize that cold calling, walk-ins at your dealership, and other traditional methods of selling vehicles are outdated. Meeting your potential clients where they currently are: online, is the new method of conducting business. SimpSocial can help you with it. SimpSocial does all of the legwork for you and provides you with leads who are ready to go into your dealership and buy a car.
a delighted man in his new car
SimpSocial CAN HELP YOUR DEALERSHIP IN THE FOLLOWING WAYS
After a tumultuous few years, many auto dealers are hoping to recoup. It’s time to rev up your engines and bring them back to life.
Consider teaming with SimpSocial if you’re concerned about the worldwide picture of the auto industry as you plan for your dealership’s future. With our cutting-edge technology, Text Ninjas, and effective Facebook ads, we help dealerships sell more automobiles, faster.
mask-wearing car salesman
We collaborate with your dealership in order to help you sell more vehicles. Our goal is to provide you with qualified leads who are ready to visit a dealership and purchase a new (or used) automobile. Please contact us right away to find out how we can assist you in selling more cars in the coming year.
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