The automotive industry has faced unprecedented challenges in the last two years, with challenges ahead for the foreseeable future. Car Dealer Benefits Founder and CEO Dennis Haggerty weighs in on what to expect from car manufacturers and dealers in the coming year.
Like other experts in the automotive industry, Dennis believes the current chip shortage that is raising new vehicle prices will continue to push up vehicle prices through 2023. However, as he points out, sales have already started swinging back up after falling during the COVID-19 pandemic, and it is entirely possible for dealerships to perform well even if car prices hit new highs. He predicts that car dealerships will follow other industries, putting a premium on brand loyalty rather than solely on sales. As Haggerty rightly points out, dealerships can boost brand loyalty and consumer confidence by being willing to refer clients to other dealerships with the car that best suits the consumer’s needs and budget. If a group of dealerships networked by referring customers to each other as the need arose, it would boost brand loyalty by offering a drastically improved customer experience.
Dennis Haggerty also expects the current trend toward electronic vehicles to become even more popular in 2023 and the coming years. President Biden’s recent executive order on clean cars and trucks, which calls for 50% of all new vehicles sold to be emission-free by the year 2030, has been one driving force in pushing the industry to put an emphasis on manufacturing electronic cars; however, is it not the industry’s only motivator. Countries worldwide and the public have become increasingly aware and concerned about carbon emissions. Vehicle manufacturers, eager to stay in step with the times, plan on debuting or launching over forty new electronic vehicle models in 2023 alone. Most are SUVs; however, several trucks are also in the mix.
Additionally, Haggerty explains that the current lineup of new EVs shows that almost all internationally-known brand names are jumping on the EV bandwagon. New EV manufacturers include Ford, GM, Toyota, Maserati, Mercedes-Benz, and Nissan. Most of the new EV models are expected to run solely on electricity.
The automotive industry has always been innovative, as car manufacturers strive to use new technologies to offer improved products and services. As Dennis Haggerty notes, innovation will likely continue apace for the foreseeable future as vehicle manufacturers switch from gas-powered vehicles to electronic ones. Additionally, dealerships may evolve in the coming year, working with each other to improve customer service and boost brand loyalty across the board rather than acting as separate entities continually working against each other to make the highest possible profits. In the end, car manufacturers, car dealerships, and buyers will likely benefit if the trends mentioned above materialize and remain in place in the coming year.