The Top 5 Trends Dealers Will Face in 2023
Utilize this crucial trend data from the car sector to get ready for 2023.
a picture of a car’s push-button ignition
We’re considering the key themes that dealer owners and operators will have to deal with in 2023 as the auto industry continues to reset and recalibrate in a market that is undergoing constant change. All signs point to the pandemic’s severe pressure on the car sector to change persists. Dealerships will need to come up with new strategies for generating growth as a result of industry changes, new competitors entering the market, and economic uncertainty.
People occasionally need assistance figuring out what to do as we enter a year like this, where we are aware that a recession is most likely on the horizon. SimpSocial is here to help with that.
In this blog, we talk about changes we predict will affect the automobile sector and how we can support dealers in overcoming them.
More resistance from dealer franchisees against OEMs
If we go back to the beginning of the year, backlash from dealer franchisees against OEMs started to occur (and, in our opinion, will continue into the new year). Numerous franchise dealers are worried that manufacturers’ audacious decisions regarding everything from electric automobiles to investigating new revenue streams and distribution networks will jeopardize the survival of their companies. In the automotive industry, one business model has endured for many years: customers purchase cars from independent dealers, not manufacturers. We anticipate some conflict between OEMs and franchise dealers as a result of the challenge to this economic model.
SimpSocial is prepared to act as the link between our OEM partners and dealer partners. We strive hard every single day to maintain the strength of franchise dealerships in the face of change. There are numerous methods to do this. Greater openness and communication between OEMs and the franchise network, as well as enabling individual franchisees to concentrate on the customer experience, are things we think will be essential.
More openness and willingness to engage in the conversation about EVs
When it comes to electric vehicles (EVs), we’ve seen OEMs propose fresh EV initiatives while dealers push back. But as more information on the market for EVs becomes available, we believe that dealers will become more receptive to the EV movement. Whatever your feelings toward it, it is a fact. Customers of yours are looking for EVs, and we want to enable our dealer partners to feel equipped to satisfy that need.
New opportunities in the automobile industry are being created by electric and hydrogen technology, and dealers with an eye toward the future will be prepared to meet those needs.
These 9 Practical Tips for Dealers Will Teach You More About How to Sell EVs
(See the previous blog.)
The Auto Industry Will Continue to Expand
Folks, that’s a good prediction for everyone: cars won’t disappear. Although we anticipate a general increase, it probably won’t be as significant as what we witnessed over the previous two years. The past several years have been a special case that only occasionally occurs. Any industry cannot continue that kind of rapid expansion since it will lead to future problems and shortages that will have an adverse effect on that growth. Regardless, we believe that everyone will be able to recognize the upward growth trend and capitalize on it if they concentrate on important aspects of their companies.
One of the best things any dealer owner or operator can do to ensure future success is to engage in customer connections, team building, and networking, as discussed in this most recent podcast episode of the Dealer Playbook.
Vehicle Advertisements Will Rise
The performance and spending of Google Vehicle Ads (VAs) are rising, which is consistent with this prospective expansion. Because more players are joining the VA market, it’s really simple to make connections. Additionally, it’s still a type of auction because more people are involved in that area. Budgets are growing to stay competitive, or entering the market at a baseline with a matching budget to be competitive, and this trend will continue over the course of the next year, at the very least.
We continue to see several dealers who are either unaware of Google VAs or unable to access them (or both). This is due to the fact that they are still fairly new and require setup and management by a legitimate Google Trusted Partner in the VA program. SimpSocial has the expertise, contacts, and credentials to get our dealer partners’ Vehicle Ads set up.
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