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After years of shortages, dealership lots are now overflowing with vehicles, marking a significant shift in the automotivemarket as supply catches up with demand. Automotive data company Cloud Theory reported this month that new vehicle inventory was up 23 per cent in 2024. Now the lots are full.
“The growth seen in 2023 is remarkable, especially considering the ongoing geopolitical tensions between China and the USA; the instability generated by conflicts across Europe; the high interest rates that persisted in most of the Western world; and the high price of vehicles,” Felipe Munoz, senior analyst at JATO Dynamics, said.
Dealership service departments are not only losing market share to general repair shops — they’re also losing the trust of consumers, according to the latest research by Cox Automotive. As a result, they’re bringing their vehicle in for service or maintenance more often: an average of 2.5 in the pre-pandemic 2018 survey.
. “A decade from now, when we look back at the years immediately following the global pandemic of 2020, we’ll be awed by the dramatic swings and unprecedented circumstances the economy and auto market endured,” said Cox Automotive Chief Economist Jonathan Smoke. auto market being steered by five key themes.
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