Analysis: Auto industry success goes beyond sales
Posted on Tuesday, October 14, 2014 at 9:25:52 AM
When it comes to measuring success in the auto industry, experts typically point to monthly sales figures. However, according to a report from J.D. Power, the real strengths of this segment go beyond this lone metric.
For example, the auto industry is experiencing growth in sales and in the new-vehicle average transaction price, and this latter statistic can shed some more light on this segment.
"When defining success in the auto industry, whether it is for a specific segment, manufacturer or model, it's important to look beyond basic sales figures," said Thomas King, vice president of J.D. Power's Power Information Network. "With the rapid growth of average transaction prices over the past few years, success needs to be defined more broadly to include overall revenues in addition to sales volumes."
King pointed to large pickups, a type of vehicle that has seen lower sales than other parts of the industry, but also has experienced drastic price growth.
In addition, this industry can remain favorable for buyers interested in auto financing and great deals, thanks in part to incentives and other favorable conditions. According to Cars.com, new-car incentives are peaking for 2014 models, and many buyers can get an affordable lease without breaking the bank.