Now that we’re halfway through the year, what are experts predicting, from sales numbers to EVs and other industry trends? Joining us on the recent episode of CBT Now with more is the President and CEO of AutoForecast Solutions, Joe McCabe.
Key Takeaways
1. According to McCabe, the unexpected outage at CDK Global highlighted the industry’s vulnerability and the need for dealerships to have contingency plans. Many dealers had to temporarily revert to manual processes, underscoring the importance of preparedness for technological disruptions.
2. Despite the challenges, the industry is demonstrating remarkable resilience. McCabe notes the industry is on track to achieve over 16 million vehicle sales in the U.S. this year, with a hopeful return to the 17 million mark in the near future. Interest rates remain a hurdle, but manufacturers are effectively mitigating this with their own financing options.
3. The demand for EVs is stabilizing and showing promising signs of growth. They are expected to reach around 8% of the U.S. market over the next few years. Early adopters have already purchased their EVs, and the focus will shift to making them more appealing to cost-conscious consumers with better range and affordability by 2027.
4. Brands like Volkswagen and Stellantis are poised to surpass Tesla in BEV production by the decade’s end. Meanwhile, Chinese automaker BYD is a significant player, prompting concerns about international trade dynamics and market competition.
5. The automotive industry’s heavy investments in EV infrastructure are met with uncertainties, including potential changes in government policies and trade relations. The outcome of the upcoming U.S. elections could significantly influence the future of EV incentives and domestic production strategies.
"Interest rates are still a problem, but manufacturers are navigating through it by offering their own interest rates and trying to move the metal. The constant push and pull of selling ICE vehicles versus BEVs at the same dealerships and making a profit remains the challenge of the day." – Joe McCabe.
