31 January 2019
interesting trends that auto dealers should be paying attention to in 2019.
Popularity of EVs Continue to Climb
automobile manufacturers are beginning to offer one or more electric vehicles
in their product range. Companies like Tesla have a model range that is fully
electric. More and more vehicle owners are becoming environmentally conscious
and moving away from petrol and diesel powered vehicles.
is a clear sign of changing times which, along with an improved network of
battery recharging facilities and faster recharging times, means that dealers
will see more customers showing interest in electric cars.
Popularity of Sedans are Dropping
have now shifting away from sedans and are instead buying SUVs. This has
reached a level where Ford and General Motors (GM) have announced that their
primary focus for 2019-20 would be the production of pick-up trucks and SUVs,
rather than sedans.
used car sales are also seeing a rise in the U.S. The average age of vehicles
is climbing, meaning that owners are holding onto their cars longer before
selling them off.
On top of
rising new car prices, this means that the used car market, which is already a
billion dollar industry, is poised for even more growth in this year.
Vehicle Subscription Plans Gain Traction
plans are commonplace, be it your gym membership, Netflix, or even cars. Many
of today’s car buyers find more financial sense in buying cars this way than
paying the full amount before driving it out of the showroom.
subscription plans also make it easier to trade the car after a few years and
replace it with a newer model.
trend has even luxury car manufacturers such as Cadillac, Lincoln and sports car
maker Porsche offering vehicle subscription plans. We know that when a trend
starts among luxury car makers, it more often than not has a tendency to
trickle down to all other auto manufacturers as well.
Increasing AI Presence in Cars
sales staff will need to be trained to become more knowledgeable in explaining
and demonstrating artificial intelligence (AI) tech, as its implementation has
been steadily on the rise in modern cars.
Assistant, Siri, and Cortana are becoming exponentially better at
understanding and responding, and auto majors such as BMW have already
partnered up with Google in this regard.
Dealerships Becoming More Tech-Heavy
technological wave isn’t affecting only the cars. Car dealerships are
undergoing a makeover in terms of phasing out older practices that are
inefficient by today’s standards and replacing them with more sophisticated
methods. Auto dealerships are increasingly deploying data analytics solutions
like FrogData to streamline dealer operations, reduce costs, and increase both
revenue and sales.
Dealerships will also need to allocate funds for acquiring
better equipment, and educating technicians and staff on how to organize,
track, and adjust processes in order to make them leaner, more efficient and
For more information on upcoming trends in the
automotive industry in 2019, Contact Us.