The auto industry has experienced unprecedented uncertainty during the global pandemic and subsequent microchip shortage and supply chain issues. Unfortunately, it appears these supply challenges will continue well into 2022 and potentially beyond.
In this week’s edition of the fusionZONE blog, we’re focusing on the outlook for the automotive industry in 2022, including what carmakers and the auto sales industry may be facing over the coming months and year.
We’ll also cover some ways that dealerships can combat supply chain issues and outperform their competition in 2022!
A Look Back
If you look back to early 2021, things were looking up once again. The U.S. economy was surging, picking up steam as we looked to move past the pandemic.
Between low interest rates and stimulus checks, car shoppers were back and ready to buy. As a result, not only did new car and truck sales soar in early 2021, but pre-owned vehicles were becoming harder to find as more drivers jumped back into the market looking to buy.
Some automakers were anticipating a record sales year in 2021, and the industry as a whole forecasted to move 18 million-plus vehicles.
But that was before the microchip shortage and other automotive supply chain issues hit.
Now, the semiconductor shortage is expected to last into 2022. That means carmakers may have to wait another year or even longer to see a new sales record.
Ongoing Supply Chain Challenges
With the supply of new cars remaining constrained into 2022, the used car market will also continue to feel the effects.
Thanks to fewer options and record-high prices, used car buyers and dealerships will likely continue struggling to find ideal vehicles with favorable pricing.
In short, new and used car dealerships will need to continue thinking creatively to overcome inventory issues.
The car dealership inventory shortage has indeed forced dealers to think outside the box, and this type of thinking will continue to serve businesses well.
As we mentioned in our “Setting Yourself Up for Success in Q4” blog post, creating a plan to minimize the effects of inventory issues should be a top priority as we look to a new year.
It’s also critical to find better ways to understand your customer base. So dealers will want to consider the key takeaways from post-pandemic shopping patterns.
Want more insights into the car dealership environment for 2022? Then be sure to stay tuned to the fusionZONE blog for automotive industry updates!
This is a developing story. Tune back in for updates!