Infographic: A Peek Under the Hood of the Auto Industry

After two years of a pandemic slump, the auto industry is poised for a comeback. Here, we look at predications for 2022, potential challenges, how consumers are shopping for new automobiles, and how to enhance the buying experience. 

IT’S BEEN A BUMPY RIDE

The pandemic hit the auto business hard. Although 2022 is projected to be a better year, sales are expected to remain below 2019 levels. 

2019 – 17 million cars sold

2020 – 14.6 million cars sold

2021 – 14.9 million cars sold 

2022 – 16 millions cars projected to be sold 

PRICES NOT STOPPING DEMAND…YET

Consumers haven’t shied away from vehicle purchases even as prices increased and availability declined. 

60% of consumers say price increases have not changed the purchase timelines. 

However, consumers are increasingly concerned about affordability.

In 2021, 51% of consumers said that they believe the average price of a new car will increase to a point where ownership could potentially be out of reach. 

In 2022, that number increased to 69%. 

DIGITAL BUYING ACCELERATES, BUT CONSUMERS STILL WANT A DEALER EXPERIENCE 

While consumers still want to see, touch, and test autos prior to purchase, there is room to accelerate the purchase journey through digital touch points. 

Consumers spend an average of 19 hours researching cars online. 

Their preferred way to acquire a new vehicle:

75% in person 

17% partially virtual 

6% fully virtual 

2% don’t know

Why are consumers buying online?

39% say because of convenience

25% say because ease of use

16% say because of speed

12% say because of necessity 

8% say to avoid having to go to the dealership 

1% say other

THE INDUSTRY RETHINKS CUSTOMER EXPERIENCE

The automobile industry is rethinking traditional customer experience, with customization becoming valuable to consumers. 

Step one: Solving a customer pain point 

Step two: Cultivating collaboration

Step three: Meeting customers across channels