Infographic: Four Disruptive Trends Transforming the Auto Industry
02.04.20 | Blog | By: Visual Capitalist
From a creeping crawl to a speeding bullet, the automobile has rapidly improved—and so have consumer demands.
The Ford Model T revolutionized the industry, and consumer demand catapulted it into one of the longest production runs in history.
However, consumers gradually began to desire more than just one reliable, wallet-friendly option. Today, numerous models are discontinued each year—and new features are frequently introduced to keep up with changing preferences.
This infographic from AutoTRADER.ca, Canada’s largest automotive marketplace, explores some current trends shaping the auto industry: luxury trucks, electric vehicles, millennial habits, and online research.
Most people associate trucks with off-roading and rugged work. But over the years, they’ve become much more—consumers are starting to see them as status symbols.
In addition to power, luxury trucks have features that maximize comfort and style:
While most vehicle segments have seen a decline in the market, luxury trucks have grown in market share.
High-end trucks offer both functional strength and premium features, and continue to drive growth in the auto industry.
Electric vehicle (EV) listings are growing from low initial numbers, and their overall market share is still limited. However, the demand for EVs is growing rapidly—from 2017 to 2018, AutoTRADER.ca’s EV market doubled.*
Note: AutoTRADER.ca’s EV market excludes hybrids.
On top of that, EVs are selling faster. In 2018, it took 15 days for an EV listing to turnover, compared to 27 days in 2016.
What has caused this surge in popularity?
As various regions take steps to remove gas-powered vehicles from the roads, the EV market will continue to expand.
While many think that millennials aren’t buying cars, the data tells a different story. In the first quarter of 2018, millennials accounted for all new vehicle sales growth in the North American auto industry.
Millennials are still buying vehicles—they’re just waiting longer than previous generations did. Cash-strapped millennials are up to nine times more likely to delay a vehicle purchase until they’re triggered by a life change such as switching jobs, getting married, or having children.
Main Purchase Trigger by Generation
Note: numbers may not sum to 100 due to rounding.
To help with purchase decisions, millennials refer to video content and draw on personal networks. They also prefer to visit online marketplaces over physical dealerships.
Millennials aren’t the only ones turning to the internet for help: roughly eight in ten buyers use online sources to help them simplify the decision-making process.
Automotive marketplaces are the most popular resource—used by 77% of online buyers. What makes them so popular?
All of this easily accessible information has made online marketplaces the go-to source for consumers’ automobile needs.
Originally published on Visual Capitalist.
