Can consumers have an impact on automotive stock prices? Yes, consumer trends in the automotive industry impact stock prices more than almost anything else.
Automotive stock prices fluctuate based on many factors. Automakers might experience slowing of production, shortages of supplies, and recalls based on failing technology, but nothing impacts the stock prices more than consumer trends. When consumers move toward something new or more interesting, the industry generally pays attention and works toward giving consumers what they want.
Here are a few consumer trends in the automotive industry that could impact stock prices.
Mobility Is Changing
Many automakers have begun working on autonomous vehicle technology and advanced mobility solutions to help improve the ability of the immobile to get around and take care of things when they need to. Most car owners understand that an autonomous vehicle should perform better than a normal car, and younger generations embrace technology more than any previous generation. Additionally, mobility through autonomous vehicles allows many professionals to benefit from ride-sharing and robotaxis rather than owning a vehicle, which makes transportation much more affordable for them.
Improved Connectivity
Connectivity is no longer simply enjoying the benefits of Apple CarPlay and Android Auto in a vehicle. Advanced connectivity through telematics is making a huge impact on the automotive industry by driving consumer trends towards more interconnected vehicles. In addition to communication from one vehicle to another, automakers are implementing advanced technology to make voice commands better and easier to use. These advanced technologies should translate to improved stock prices for automakers that have embraced these new systems to add more tech in vehicles, which is enticing to younger shoppers.
Customer Experiences Matter
The days of dealerships having the upper hand in car purchase negotiations are over. Many shoppers expect to have an incredible experience at the dealership with few or no hiccups along the way. When something goes wrong, shoppers now expect to have those issues communicated to them. With advanced technology, dealerships have no excuse for dropping the proverbial ball in terms of communication. This means answering any question, offering a seamless customer experience, and a strong relationship that’s built through the car buying experience.
Better Research
Many car buyers begin their shopping experience online and review the choices available to them through online searches, videos, and other customer reviews. This increased access to instant technology has made many car buyers better informed than ever before. This is one of the most important consumer trends in the automotive industry, and it means shoppers have a better idea of what they want to buy before they ever step foot inside a dealership. This can streamline the shopping experience to make it much easier to buy each vehicle.
Sustainability
Why are more automakers than ever embracing sustainability efforts? In addition to being the right thing to do, consumers are looking for companies that focus on using recycled materials and reducing their carbon footprint more than ever before. This means utilizing sustainable materials and processes and offsetting those areas in which the automaker isn’t as clean as it could be with impressive sustainable processes. This trend has become a focus for dealerships as well, with many working to install solar panels or utilize renewable energy in their dealership operations.
Customer Feedback
One of the biggest consumer trends in the automotive industry, and every other industry, is the increase in consumer feedback. This means reviews, opinions, and feedback that can allow future consumers to make more informed decisions about the vehicles they purchase and drive. The improvements in smartphone technology have led to instant access to reviews. Some shoppers won’t give a company a chance if the reviews aren’t stellar, which makes these reviews extremely important. This makes it even more important for automakers and dealership networks to provide top-notch customer experiences.
Accessibility
Does the dealership showroom cater to everyone? This includes ramps for wheelchairs and accommodations for shoppers in wheelchairs, but that’s not all there is to accessibility. Are the models customers desire on the lot easy to drive home? If a customer wants a pre-owned vehicle from another location, is it easy to bring it to the dealership? Accessibility also means customers have their questions answered in a timely fashion. This might mean once the dealership has closed or when there’s some downtime for the sales team.
Consumer trends in the automotive industry can drive buying trends which also drive stock prices. This is one factor automakers don’t have a lot of control over, but if they pay attention, its easy to take advantage of growing consumer trends.
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