Between stay-at-home orders and the normalization of working from home, the automobile industry was impacted tremendously by COVID-19. But now, there’s reason to be optimistic about the future of the industry. Though 48% of drivers across the globe spend less time driving than they did before the pandemic, the industry is going strong. This year, worldwide car sales are predicted to reach 71.4 million, increasing 7.6 points from 63.8 million in 2020. Here’s everything you need to know about the state of the automobile industry in 2021.
WHAT’S DRIVING AUTOMOBILE SALES?
There are three main factors impacting peoples’ decision to purchase a car. These include:
- Moving into a new house (29%)
- Getting a new job (22%)
- Working from home (12%)
WHO’S ON THE ROAD:
Almost half (48%) of drivers internationally say that they now drive less than they did before the pandemic. 40% of drivers believe they have maintained their pre-pandemic driving habits (40%). In contrast, only 13% say they are driving more.
THE SUPPLY CHAIN SITUATION:
Currently, there’s a lack of inventory due to global supply chain shortages. 58% of respondents are aware that low stock leads to higher price tags.
New vehicle registration data reveals that the overall brand loyalty rate in the U.S. market is at its lowest since Aug. 2015 at 51%. This is attributed to the ongoing global microchip shortage.
While consumers aren’t staying loyal to their automobile brands, body-style loyalty is strong. It’s up 1.1 percentage points in June -- this year it’s 55.5%, last year it was 54.4.
SATISFACTION GUARANTEED
As a whole, customer satisfaction with the automobile industry is unchanged, scoring 78 out of 100, says the American Customer Satisfaction Index Automobile Study 2020-2021.
Honda leads the mass market with an ACSI score of 82, followed by Subaru (81) and Ram (80).
In the luxury market, Lexus and BMW are in a tie for first place with an ACSI score of 81, followed by Audi and Tesla, both with scores of 80.
CUSTOMER PAIN POINTS:
There were several benchmarks that fell to below 80. These include website satisfaction (79), mobile app reliability (78), mobile app quality (78), warranties (78), and gas mileage (76).
SOURCES:
More consumers would buy a car than go for shared mobility | YouGov
Honda, Lexus Lead Customer Satisfaction | Media Post