A snippet from “The State of the Union: Retail Automotive” at SAS 2024.

Central to the recovery strategy is inventory production. Original Equipment Manufacturers (OEMs) are making promising strides, doubling dealership inventory since January 2022. As inventory levels rebound, so does brand loyalty. After falling to 48.8% in late 2022, brand loyalty has rebounded by over 5% as dealerships replenish their stock.

Tom underscores the critical link between inventory levels and brand loyalty, forecasting that ongoing inventory growth will restore brand loyalty to pre-COVID levels exceeding 54%. With a diverse selection of vehicles offered by their current brand, consumers are increasingly inclined to remain loyal, encouraging repeat purchases.

While effective marketing boosts awareness, diminished vehicle inventory will limit the store’s ability to sell and retain previous customers. As production ramps up, the industry expects broader stability and recovery.

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