ZeroSum’s Perspective: What You Need to Know
The consistency of new vehicle inventory levels over the past six months suggests that the industry is readjusting to a “new normal” inventory level, while rising vehicle prices indicate that low inventory levels continue to generate solid revenue for dealers and profits for OEMs. The conflict in Ukraine caused European OEMs to revise their production forecasts, while several companies, including VW, announced production changes of Europe for North America and China.
Ford’s announcement that it will split its business into Ford Blue and Ford Electric suggests a desire among OEMs to reinvent business models, with other OEMs likely to follow suit. The launch of new electric vehicles is expected to accelerate as OEMs seek to capitalize on changes in consumer behavior due to inflation and fuel prices.
Here are your main takeaways:
April new and used inventory is down as prices continue to rise. There are currently 1% fewer new cars and 2% fewer used cars on the lot than at the start of the month. New vehicle prices are up 1% and average used car prices are now up $8,500 I.
- Challenge brand loyalty. Dealerships should look outside of their own brand for opportunities to steal market share from neighboring OEM franchises in high-opportunity segments.
- Market the car, not the price. Due to rising prices, dealers need to focus their marketing messages on available inventory rather than price or offers, in order to win over additional buyers.
- Market all of your inventory. Consumers are likely to consider both new and used vehicles due to limited availability and soaring prices.
To read the full report and view additional charts, visit our website: https://www.zerosum.ai/blog/zerosum-market-first-report-2022-4
On Zero sum
ZeroSum is a leader in software, marketing and data. Powered by its SaaS platform, MarketAI, ZeroSum simplifies and modernizes automotive marketing by leveraging artificial intelligence, data and scalability to acquire new customers. ZeroSum is the first and only company that connects consumer demand with real-time automotive data. For more information, visit www.zerosum.ai.
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