Surprisingly, consumers in the automotive industry are not loyal and even a handful of satisfied customers are willing to change brands. Learn more about your consumers by establishing your 1st party data strategy and leveraging your current customers. Improve conversion and enable your company to create targeted campaigns that are more likely to resonate and persuade potential new customers.
Even with satisfied consumers, around half are still willing to change brands
Source: Global Consumer Survey. (December 13, 2022). Statista
Seeking other sources of competitive advantage will be critical for the next 5 years as the automotive industry growth will fall behind inflation as the industry CAGR will only be 1.7% for the next 5 years. The leading reasons for this are the following:
- Volume sales growth will remain sluggish at 1.9% CAGR for the next 5 years
- Apart from the luxury cars segment, prices will remain stable for the next 5 years
Average car prices will remain stable across segments except for luxury car prices which will become more expensive
Source: Mobility Market – Worldwide. (n.d.). Statista
Out of scope: Motorcycles, Buses and Trucks, Commercial Vans (included for the U.S. market only, Pickup trucks (included for the U.S. market only)
Despite these bleak forecasts, consumers and governments will demand more from auto car makers in terms of technological advances from delivering autonomous driving to lessening CO2 emissions.
Do you want to learn more?
You can download the full report here or follow and contact us on LinkedIn.
Report is included here: Auto Industry Report.
Image by azerbaijan_stockers on Freepik.
