Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
As most countries are coming out of lockdowns and markets are
adapting to the 'new normal', automotive retailing is no longer the
same as six months ago. The COVID-19 pandemic had a lasting impact
on consumer behavior and drastically accelerates what was
unavoidable — the transformation of automotive retail.
Three effects are coming together, which are going to lead to a
significant dealer consolidation, increase of buy-sell activities,
and reduction of rooftops in the next years:
Unprecedented standstill of the automotive industry exacerbated
the strain on dealer profitability, which has been facing reduced
margins and increased competition prior to the pandemic.
Social distancing has led to an accelerated digitization of the
customer journey, as shopping, research, and part of the
transaction have shifted to online meaning fewer walk-in consumers
and decreasing relevance of stationary touchpoints and brick and
mortar.
Major global auto manufacturers (OEMs) are shifting towards
direct sales models in response to changing consumer expectations
and retail network cost structures. OEM-forced consolidations will
only add additional pressure to the conventional dealer model and
continued OEM mergers will create multi-brand networks — an
opportunity to improve cost sharing and efficiencies
The third installment of IHS Markit's new Automotive COVID-19
Recovery Series is now available. In our whitepaper; Automotive
Retail, we addresses the impact of the pandemic on consumer
behavior and how mobility shifts have influenced dealer standards
and capacity, dealer profitability models, OEM changing views on
legislation, and the role of dealers in the future. Research and
insights into these accelerating trends will highlight the
alterations automotive manufacturers and dealers must make in the
short term to survive these trying times, as well as the
longer-term strategies to enact to ensure prosperity going
forward.
This whitepaper is one of three whitepapers produced for our
COVID-19 Recovery Series.
