The automotive industry is expected to face a subdued year in 2024, though a bright spot will be the electric vehicles market, with sales expected to soar by 21% as governments and consumers try to mitigate the worsening effects of climate change.
New vehicle inventory rose in 2024, with higher incentives and deeper discounting. Market forces exerted downward pressure on vehicle prices, meaning sales gained over 2023 but at a modest level of growth. The used-vehicle market is also expecting marginal growth, with limited production between 2020 and 2022 leading to a scarcity of available certified pre-owned products despite strong demand.
Dealerships will need to work to protect their profit margins, and a competitive one will place greater emphasis on a more satisfying and efficient car-buying process. While margins for used vehicles and fixed operations are expected to remain relatively strong, sales departments for new vehicles will be tested. For many, profits will be affected by higher floor plan costs and the need to invest in infrastructure to support the growing sales of electric vehicles. That said, demand for EVs is increasing: Sales are projected to exceed the 1-million-unit record set in 2023, accounting for almost 24% of the market – along with hybrids. Furthermore, the used EV market is expected to be the fastest-growing segment of the wholesale/used vehicle market.
While not necessarily exciting, the forecast for the automotive market is fairly normal, which is a welcome relief compared to the past few years. If you are considering the purchase or sale of an automotive business, Brock & Grey is committed to ensuring the best deal for all parties involved. Brock & Grey’s business advisors will meet with each prospective automotive business buyer to determine your abilities and interests, educate you about the search and buying process, and connect you with automotive business sellers that best match your criteria. We offer a detailed description of each business, along with basic business information, such as price, down payment, number of employees and current inventory.
