Dealers Expect Mobility to Close Stores, But Not Theirs.. Featured

By Ted Craig October 30, 2018

Dealers predict a sharp decline in auto ownership the next five years, but only 10 percent see this as a threat to their current business.

This seemingly contradictory finding comes from the recent “Cox Automotive Evolution of Mobility Study: A Dealer’s Perspective.”

In the next 10 years, nearly half (47 percent) of dealers see consumers owning or leasing fewer vehicles per household as a direct result of the increasing number of mobility options and the introduction of autonomous vehicles to the mass market. Ride-hailing (87 percent) is predicted by dealers to see the most growth, followed by car subscriptions (82 percent), car-sharing (81 percent) and autonomous vehicles (81 percent).

So why are so many dealers confident they will be OK?

Because 45 percent say they see new shared mobility models, such as ride-hailing, car-sharing and car subscriptions, as new revenue streams. Three out of four dealers see a benefit in offering these shared services at their dealerships, with 40 percent viewing mobility as an opportunity to appeal to a new consumer base.

Then there are the other parts of their business that could stand to make more money Nearly 3-in-5 dealers (59 percent) also believe fixed operations will play a more important role with vehicles used for ride-hailing and car-sharing logging more miles and requiring more service.

“Dealers are approaching the evolving mobility landscape with their eyes wide open,” said Joe George, president of Cox Automotive Mobility. “While traditional car ownership isn’t going away anytime soon, we’re focused on enabling dealers with innovative consumer mobility and shared fleet service solutions to keep their businesses relevant.”

While dealers might believe they will survive and even thrive, they see many of their competitors going under as a result of this change in consumer habits.

More than half of the dealers surveyed fewer dealerships 10 years from now.

Cox Automotive is preparing itself for the next phase in automotive ownership.

The firm recently added its mobility group and acquired Clutch Technologies, a technology platform powering subscription access for the automotive industry.

Last modified on Tuesday, 30 October 2018 19:29