LAS VEGAS (April 1) - Retail-automotive leaders from Europe, Mexico, Russia and the United States discussed global economic and industry conditions at this year’s International Roundtable during the NADA Convention in Las Vegas. Some highlights:
In the United States
- Gen Y buyers consider the customer experience the most important criteria when buying a vehicle.
- Alternative modes of mobility, such as ride sharing, are the preferred means of mobility for 36 percent of the country’s 80 million Gen Y consumers.
- The industry will evolve naturally and incrementally toward a future mobility system that includes autonomous cars, but soon there will be a tipping point where such change is unstoppable.
- The stakes in the U.S. auto industry include about $2 trillion in revenue, including such segments as insurance, taxes, oil, fuel, advertising and other key segments of the economy.
- Data will help dealers shift their business models to best serve consumers—and remain profitable—by identifying exactly what consumers want and need. Europe, like the rest of the world, is dealing with digitalization, changing consumer behavior and new players in the market.
- The European dealer network includes 28 countries and 23 official languages. While each market is completely different, all must agree to effect changes in the network.
- More than 14 million new cars were sold in Europe last year, and that number is expected to rise to 14.4 million in 2016.
- Auto exports now increased to 23.2 percent of total exports from Mexico.
- Mexico is currently the seventh largest auto producer in the world—behind India and ahead of Spain.
- In 2015, auto financing in Mexico grew 22.8 percent compared to 2014. There is the potential for financing to represent up to 80 percent of sales.
- Russian dealers are struggling with plummeting sales across all vehicles segments. The only brands that have not dipped in sales are Lexus, Datsun and Porsche.
- Increased costs and inflation have shaken consumer confidence in Russia, so the public is avoiding major purchases—especially those that involve financing—and opting to save.
- Some 72 percent of Russians believe it is a bad time to make a major purchase.
- More than 88 percent of Russians believe they are in the same or a worse financial situation than they were a year ago.
- Despite the negative economy, most Russian dealers have not terminated their franchises. With 4,159 dealers in the network, 593 dealers terminated their franchises last year and 464 dealers bought new franchises.
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