There have been nothing but positive predictions on the automotive front. KBB points out that the pace of the increase will actually slow, but given the hole the industry fell into in 2009, it’s still a major positive.
KBB is quick to point out that there will still be challenges – for starters, although it has been improving slowly and steadily, the economy cannot yet be said to be in robust health.
“Although the sales pace is expected to slow this year, automakers have demonstrated that they can generate solid profits with sales at current levels, which is a strong indication that they will remain disciplined by continuing to match production to meet demand,” said Alec Gutierrez , senior market analyst of automotive insights for Kelley Blue Book . “Sales growth won’t come easily, especially considering the challenges facing the industry in today’s economy. While economic growth is expected to arrive slowly in 2013, there are several indications that point toward solid auto industry sales growth in the years ahead.”
KBB noted the number of sales going back to 2007, when 16.1M new vehicles were sold. The economic collapse occurred late the next year and in 2013, the 2007 level still will likely be unattainable.
Car sales per year:
Source: Kelley Blue Book
RBR-TVBR observation: Some vehicle merchants may think that with sales predicted to increase, all they need do is sit back and wait for paying customers to simply show up on the lot with their checkbooks.
Of course, the truth is anything but. The customers will show up at the lot that has done the most effective job of luring them. Be sure to remind your local dealers that victory will go to the merchant who most effectively communicates its message to best-targeted group of consumers, a task which you can help them to accomplish.