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Insight into the Market Leads the Way to Pandemic Recovery

Published: September 17, 2020 by Guest Contributor

two blue cars parked in tandem in an automotive showroom

No one was quite prepared for COVID-19 and its unprecedented impact on the automotive industry. Factories shutdown, dealerships closed and sales plummeted. But, now as the market begins to recover, the environment looks different than it did before. In order to move forward and rebound from the pandemic, manufacturers and dealers need to rely on market trends and insights to assess their go-forward strategy.

As expected, new and used vehicle registrations experienced significant declines compared to last year. According to Experian’s Q2 2020 Market Trends Review, there were 6.4 million new vehicle registrations through the first half of the year, down from 8.4 million a year ago; used vehicle registrations came in at 18.3 million, down from 21.8 million over the same period.

Despite the significant drop in new and used vehicle registrations at the onset of the pandemic, a positive trend is emerging. In March, when COVID-19 was officially declared a pandemic, the volume of new vehicle registrations dropped by approximately 460,000 compared to February; a similar trend was observed on the used vehicle side, where registrations declined by as much as 1.6 million. We have since seen new and used vehicle registrations slowly approach pre-pandemic levels; and in some instances, exceed them. In both June and July, there were approximately 1.2 million new vehicle registrations; only about 120,000 off February levels—and used vehicle registrations actually surpassed the February mark, in both June and July by surpassing 3.7 million vehicles each month.  This positive trend eludes to a cautious return to normalcy as stay-at-home orders lift and consumers once again consider purchasing vehicles.

But with more consumers re-entering the automotive market, understanding which vehicles are most in demand is crucial to meeting the needs of car buyers. The top three makes for new vehicle registrations for consumers were GM (13.9%), Toyota (12.4%) and Ford (10.1%). Meanwhile, the top three make and models include Ford F-150 (3.4%), Chevy Silverado 1500 (3.3%) and Toyota RAV4(3.1%).

Beyond the preferred makes and models, the industry needs to understand who is buying cars. And contrary to popular belief, Millennials and Gen Z have actually increased their car purchasing. Both groups saw an increase in the percentage of consumers purchasing vehicles, while Baby Boomers and Gen X saw a decrease. It’s important to note, Baby Boomers, Millennials and Gen Xers still make up the majority of consumers purchasing new vehicles.

People are at different points in the COVID-19 recovery lifecycle. Understanding who is in the market for a vehicle and what they are looking for is more important than ever. As the market rebounds, manufacturers and dealers can both meet the demands of consumers and increase sales by identifying in-market car shoppers and reaching them with relevant messages. For example, Millennials might be more receptive to digital messaging across many platforms while Baby Boomers and Gen X consumers may gravitate towards print. It’s these small details that will carry messaging further.

As consumers begin to reconsider automotive purchases, manufacturers and dealers can stay one step ahead by digging into the data. Staying ahead of the trends and adjusting to what lies ahead, will not only support sales growth, but also support consumers as they begin to recover from the impact of COVID-19.

To view Experian’s full Q2 2020 Market Trends Review, click here

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Published: December 5, 2024 by Melinda Zabritski

Summary:  Gen Z, Millennials, Gen X, and Boomers each have unique automotive buying preferences and your strategies to reach each generation should reflect these preferences. The automotive landscape is shaped by the distinct preferences of different generations. From Gen Z to Boomers, each generation brings unique buying habits that automotive marketers must understand to stay competitive. Below is a brief overview of the key insights from the latest reports on Gen Z, Millennials, Gen X, and Boomers. To learn more about how to market to each generation, download the respective playbook. Gen Z (Born 1996–2015) Gen Z buyers are digital natives who prefer compact vehicles. The Honda Civic leads in market share for this group, showcasing their preference for smaller, fuel-efficient cars. They rely heavily on digital platforms for their research, with 73% of impressions delivered through Connected TV (CTV). Millennials (Born 1981–1995) Millennials value technology and eco-friendly options. Crossovers (CUVs) are their top choice, making up 50.2% of new vehicle registrations. Electric and hybrid vehicles are also popular, reflecting their environmental consciousness. Popular models include the Honda Civic and Toyota RAV4. Gen X (Born 1965–1980) Gen X buyers favor practicality and reliability, gravitating toward SUVs and trucks. The Ford F-150 is the top model among this group, and they are more likely to invest in luxury or exotic vehicles than younger generations. Boomers (Born 1946–1964) Boomers remain loyal to traditional brands, with a strong preference for non-luxury and luxury cars, such as the Honda CR-V and Ford F-150. They also favor gas-powered vehicles over electric, though hybrid options are gaining ground. Summary Understanding generational differences is crucial to developing effective marketing strategies that resonate with each group’s unique preferences. For a more detailed generational analysis, download the full report. Experian Automotive is here to help you with your marketing needs. If you’d like to learn more about our solutions and how we can support you, contact us below.

Published: November 4, 2024 by Kirsten Von Busch

Quick Answer: New research on generational buying habits can help the auto industry better understand target audiences and improve marketing.  The automotive industry is undergoing a rapid transformation, driven by technological advancements, changing consumer preferences, and a diverse marketplace. To navigate this complex landscape, understanding your target audience is key. This is where generational insights are indispensable.     Why Generations Matter  Each generation brings unique values, preferences, and buying behaviors to the table. Ignoring these differences can lead to ineffective marketing campaigns and missed opportunities.  Different Needs and Priorities: Baby Boomers, Gen X, Millennials, and Gen Z have distinct needs and priorities when it comes to vehicles. For example, Baby Boomers may purchase more luxury vehicles, while Gen Z purchases a higher percentage of non-luxury vehicles.  Communication Styles: Each generation responds differently to marketing messages. Traditional advertising might resonate with Baby Boomers, while social media and influencer marketing could be more effective for younger generations.  Purchasing Behavior: The way people research and purchase cars has evolved significantly across generations. Understanding these differences can help you optimize your sales process.  Leveraging Generational Insights  To effectively leverage generational insights, consider the following:  Conduct In-Depth Research: Gain a deep understanding of each generation's values, preferences, and buying habits. Use data analytics, surveys, and focus groups to gather insights.  Create Targeted Messaging: Develop tailored messaging that resonates with each generation. Highlight the features and benefits that matter most to them.  Choose the Right Channels: Select the most effective marketing channels for each generation. For example, television advertising might be less effective for Gen Z compared to social media.  Personalize the Customer Experience: Offer personalized experiences that cater to the specific needs and preferences of each generation.  Embrace Technology: Utilize technology to reach and engage different generations. For example, virtual showrooms or augmented reality experiences can appeal to younger consumers.  Special Report: Generational Insights  We've conducted in-depth research on generational buying habits for new and used vehicles. These insights can revolutionize your automotive marketing and sales strategies. Gain a competitive edge with our Automotive Consumer Trends Special Report: Generation Insights. Discover how to tailor your approach for maximum impact. Conclusion  In today's competitive automotive market, understanding your target audience is essential for success. By incorporating generational insights into your marketing strategy, you can create more effective campaigns, build stronger customer relationships, and drive sales growth. Remember, a one-size-fits-all approach is unlikely to work. Embrace the diversity of your audience and tailor your message accordingly.  Experian Automotive is here to help you with your marketing needs.  If you’d like to learn more about our solutions and how we can support you, contact us below.

Published: August 26, 2024 by Kirsten Von Busch

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