The pandemic created a crisis in the automotive industry's momentum, and many owners may have questioned whether they should place their automotive businesses for sale. But research shows that companies are beginning to regain traction contributed by the production of self-powered vehicles, and the industry is projected to bring in substantial revenue growth over the coming years.

Research also shows that consumer demand is changing. It will accelerate the development of the market and promote new emerging markets through the expansion of global auto manufacturers and urbanization.

So should you sell your automotive business in 2023? Here are a few takeaways about the future of the industry.

The Future of Automotive Business

The market analysis shows the production to continue upward, increasing from 15.5 to 17.2 million from 2022 to 2023, even with the shortages of drivers and computer chips.

The growth is projected to continue into 2025 and beyond, meaning the demand will potentially outweigh the supply making it an ideal time to sell any existing automotive business.

Pushing the Boundaries

There's a drive to develop new software and operating systems that help power and control electric vehicles.

Vehicles produced in 2023 will be equipped with the advanced technology that customers are looking for, including self-driving options. One example is the increased production of electric vehicles with digital advancements such as navigation and warning systems built into the vehicle's exterior.

The ease of purchasing via computer or handheld device is also expected to increase in 2023. The online option combined with third-party platforms to help with marketing, visits, and booking test drives will also increase sales for companies. Providing vehicles that utilize predictive intelligence will also be a requirement for consumers moving into future purchases.

Used car sales are also expected to increase with a demand for vehicles that are four years old and newer, because they contain the latest technologies. The benefit to this is dealerships have inventories of vehicles that function like new cars but come at a lower cost.

In addition, fuel cell electric vehicles will see a growth in popularity due to their eco-friendly build and long-range abilities that save consumers money.

Electric Vehicles Take Center Stage

There is much anticipation around electric vehicles for 2023, and many are already in pre-production. In fact, some large name companies are moving in to ease the demand for variety.

There are over 40 new models getting ready to launch, and, in most cases, they are SUVs to fit the public's demands. By 2030, EV sales are projected to reach 29.5% and continue in an upward trend, making the investment a key factor in automotive sales performance for 2023.

In most cases, EV’s promote themselves. Showcasing the vehicles combined with education can support the buyers who are unfamiliar with concepts like charging options and their sustainability.

Assisting buyers as they research EVs while at the same time helping them understand the difference between maintenance for standard and electric vehicles, open the door to enhanced marketing and promotion.

Self-Driving Is Moving In

Several plans are in place for self-driving cars to start becoming a standard part of daily driving in 2023. Leading companies like Tesla and Mercedes-Benz are both working on autonomous technology and are pending approval.

The autopilot systems will allow the vehicles to recognize road signs and adjust speeds, leaving the driver to remove their hands from the wheel for a period. General Motors already has 22 hands-free vehicles in place to roll out in 2023, making this another step toward autonomous driving options.

The appeal of self-driving cars is straightforward, making them an easy selling point for consumers. Key promotions include the fact that passengers have less worry behind the wheel, enhanced efficiency for productivity in those who telecommute, better fuel economy, and a safer driving environment for their family.

Car Sales Are Shifting Online

Ease and convenience are taking center stage in consumer purchases, and the automotive industry is a front runner for this. The traditional method included a negotiation process, but with online sales, consumers can avoid bargaining in many ways.

The desired vehicle is also brought to the consumer's home, allowing them to evaluate if it is a good match for them before making the purchase. The top companies like Carvana and Vroom offer financing and calculators for the customer to create the best financing options for them and have return policies.

Any company looking to capitalize on this trend means investing in high-quality images, listing awards, and reviews from other customers and creating press releases are proven marketing strategies.

Can this beat the touch-and-feel process of in-person purchases? That is a hard question to answer because each customer's needs will be different, but so far, this trend looks like it will not be slowing down into 2023.   

Staying in the Game

Some of the other issues are the costs of component manufacturing, which could impede the growth in the market. There's also an increase in vehicle complexities, which could also slow down the industry.

One of the most significant downfalls for a company is not including technological advancements when offering purchases to customers. Incorporating technology that can help identify issues within the vehicle can be highly beneficial for the company.

In addition, companies must stay on top of new trends, with car subscriptions growing in popularity as an alternative to ownership and 20% of the United States retail sales coming from automobile dealerships.

To Sell or Not to Sell Your Automotive Business

Consumer demand is increasing, and sales are only moving forward. This means that with an increase in purchases it creates more potential for anyone in the automotive market.

Businesses that are directly impacted by the demand include:

●        Automotive repair

●        Glass companies

●        Car washes

●        Detailing services

●        Automotive sales

●        Oil changes

●        Painting and bodywork

●        Auto parts stores

All of these businesses stand to profit from increases in auto sales. Potential business buyers

know this, making it a perfect time to sell!

Choose AutoCenter Sales to Help Sell Your Business

AutoCenter Sales has been in business for over 25 years, and we take pride in serving our clients with the highest level of customer care on the market!

We're a family-owned company with a focus on integrity with commercial real estate. We offer a fully integrated analysis and make sure we understand your business to provide you with the resources you need to buy or sell an automotive business.

We want to show you what sets us apart, so call us at 1-800-874-5973 or click here to get started today!