Imagine stepping into a time machine, setting the dial to 2024, and zooming forward. What you find in the auto industry might just surprise you. The 2024 Projections For The Auto Industry are not your run-of-the-mill forecast. They’re more like peering through a crystal ball after it’s had a good polish.

Sales growth? It’s going to be slow, steady – think of it as the tortoise rather than the hare this time around. And while some might yawn at “normalcy,” after years of market whiplash, isn’t there something comforting about predictability?

The buzz is all about electric vehicles (EVs). A surge by 21%? Now that’s electrifying news! Governments and consumers alike are putting their foot down on climate change – and what does that mean for us? More EV models hitting the streets with sales strategies beefed up on steroids.

But let’s not forget: challenges loom large too. Supply chains are still playing catch-up, and we’ve got our work cut out for us to navigate these waters smoothly.

Table Of Contents:

Forecasting the Auto Industry in 2024: A Slow but Steady Growth

The auto industry’s journey through 2024 is shaping up to be more of a steady cruise than a high-speed race. Let’s break down what this means and why it’s happening.

A Comparative Analysis of Past and Future Growth

Sales growth will be weak and constrained in 2024, which is more normal state compared to the chaos of the past four years. But hey, isn’t there some comfort in predictability? Especially after riding the rollercoaster that was everything from historic vehicle value appreciation to unimagined supply drops. The forecast for a ‘normal’ market might not grab headlines, but trust me, it’s music to everyone’s ears involved.

Factors Influencing the Predicted Slow Growth

We’re looking at another year where our wallets feel just a tad heavier – slow consumer spending leads the charge here. High interest rates are joining forces with geopolitical tensions stirring up supply chain disruptions. Sounds like quite the party spoiler for rapid growth, right?

But let’s keep our spirits high because if you’re planning on buying a car, things look promising. The daunting days of pandemic-era shopping seem like they’re taking a backseat as we move into more inventory and lower prices in 2024.

So while “slow growth” doesn’t sound all too exciting at first glance – remember it spells stability after years marked by unpredictability. Plus, being buyer-friendly? That sounds like good news wrapped in economic jargon.

The Return of Vehicle Supply in 2024: A Consumer-Friendly Shift

So, you’ve been eyeing that shiny new ride but felt like the universe was playing hard to get? Well, buckle up because 2024 is shaping up to be your year. We’re talking about a game-changer in the auto world – a generous uptick in vehicle supply.

Implications for Consumers

Gone are the days when car shopping felt more like an elite auction than a visit to the dealership. With vehicle supply on the rise, it’s not just about having options; it’s about getting back control. You can say goodbye to settling for what’s available and hello to choosing what you actually want.

  • Better Deals: More cars mean dealers are eager to negotiate. Brace yourself for a flurry of unbeatable offers about to hit your radar.
  • Easier Access: Online buying tools become even handier with better inventory at your fingertips.
  • Satisfaction Boost: With improved processes and returns of discounting, saying ‘yes’ to that dream car feels as good as ever.

Impact on Vehicle Prices

A bigger buffet of cars doesn’t just spell good news for choice but also shines bright on pricing strategies. That relentless upward trend we’ve seen? It might finally take a breather thanks (and about time too), placing downward pressure on those stubborn transaction prices.

This shift means we could see prices stabilize or even dip—a welcome relief after years where sticker shock became part of our daily vocabulary. And let’s not forget used vehicles. They’re likely seeing some love too, making them an even smarter buy for budget-savvy folks out there.

In essence, while this may seem like just another year ticking by in the calendar, 2024 is shaping up to be quite special. It’s set to heavily favor consumers by offering them a wider array of choices than ever before.

Key Takeaway: 

Buckle up for 2024. It’s bringing a bigger car selection, better deals, and the power back to buyers. Get ready to pick what you really want and find some sweet deals along the way.

Bidding Farewell to Seller’s Market in 2024

Remember the days when sellers had all the power? Well, buckle up because we’re heading into a new era. The auto industry is about to do a full 180.

Transition from Seller’s to Buyer’s Market

Gone are the days of scrambling for available vehicles and paying premium prices. Cox Automotive chief economist Jonathan Smoke says, “As we enter 2024, new supply is back to spring 2024 levels.” What does this mean for you? More choices and better prices. It’s like finding an extra fry at the bottom of your take-out bag – pleasantly surprising and very welcome.

The pandemic threw us some curveballs with supply chain snafus leading to tight vehicle supplies and sky-high prices. But as we say hello to 2024, it’s time to wave goodbye to those seller-dominated days.

Influence on Auto Industry Standards

This shift isn’t just about who holds the bargaining chips; it’s reshaping how business gets done in car lots across America. Dealerships are already feeling the heat with changes looming over their profit margins, especially in sales departments dealing with new vehicles. But here’s where it gets interesting: used vehicles and fixed operations might be their saving grace thanks to stable margins that promise some cushion against these changes.

Seller’s market? That was so last year (or rather, last four years). We’re moving towards an equilibrium where buyers regain control without sacrificing dealers’ ability to thrive — if they play their cards right by focusing on areas still ripe for profits like used cars and service centers. This balance could bring much-needed stability after years of unpredictability, laying down fresh ground rules that benefit everyone involved. If you’re seeking my opinion, that scenario seems quite promising.

The keyword here folks: normalcy. Or at least something close enough that doesn’t have us constantly guessing what comes next. We’ve ridden out one heck of a rollercoaster ride through global pandemics, chip shortages, historic price hikes…you name it. But now? We can start looking forward “to more predictable patterns,” says Cox Automotive’s insights team. Explore their study for an in-depth exploration of the industry’s recovery and its implications for your situation.

Key Takeaway: 

Wave goodbye to the seller’s market as we dive into 2024. Expect more choices, better prices, and a fair playfield where both buyers and dealers can thrive. It’s all about finding balance and welcoming back some normalcy after years of chaos.

Electric Vehicles (EVs) in 2024: The Year of More

Let’s talk about the electric vehicle scene in 2024. It’s not just growing; it’s exploding with options, savings, and a whole lot of buzz. So buckle up.

Increase in EV Models

The road ahead looks electrifying with more than 70 new electric vehicle models set to hit the market over the next two years. Yeah, you heard that right – 37 models are dropping in just 2024 alone. This means no matter your style or needs, there’ll likely be an EV out there calling your name.

Rise in Incentives and Discounts

Talking dollars now – who doesn’t love a good deal? With more incentives and discounting on the horizon, jumping into an EV is becoming easier on the wallet. Federal incentives are still around to give that nudge towards going electric while leasing options get even sweeter.

Boost in Advertising and Sales Strategies

Gone are days when EV ads were few and far between. In 2024, expect to see them everywhere – from billboards to your social media feeds. Dealerships aren’t holding back either; they’re putting serious muscle into selling these green machines.With all this effort pouring into making sure everyone knows about these rides’ benefits, it’s clear: The industry believes deeply that once folks go electric, they won’t want to look back.

“We’re calling 2024 the year of more for EVs,” says Jonathan Smoke from Cox Automotive.

This isn’t just hype talking; it’s backed by solid moves across the board aiming at one thing – getting you behind an eco-friendly wheel. So if you’ve been eyeing up joining Team Electric, now might be, without a doubt, the perfect time. Prepare for an exhilarating journey as we transition to more sustainable terrains—both metaphorically and in reality.

Key Takeaway: 

2024 is set to be the year EVs take over, with 37 new models launching and more incentives making them wallet-friendly. Expect ads everywhere as dealerships push these eco-friendly rides hard. It’s the perfect time to switch gears towards a greener ride.

The Future of Car Buying in America: Embracing Normalcy

After years that felt like a rollercoaster, we’re finally seeing the light at the end of the tunnel. Yep, you heard it right. The future of car buying in America is shifting back to what we used to know as “normal.” And honestly? It’s about time.

Changes in Consumer Spending Patterns

Gone are the days when snagging a new ride meant braving a market with more twists and turns than your favorite thriller movie. Americans are now putting more emphasis on owning personal transportation, marking a significant shift from just wanting “access to transportation.” This change reflects our growing desire for stability and predictability after years of uncertainty.

This shift isn’t a mere daydream; it’s underpinned by thorough studies. Our spending habits tell us loud and clear – we value having our own set of wheels more than ever before. After all, who doesn’t love the freedom of hitting the road whenever they want?

Impact on Vehicle Values

Cox Automotive’s Forecast: 2024, paints an optimistic picture for those looking to buy cars soon.

  • Sales growth will be weak but don’t let that fool you – this means prices might start stabilizing too.
  • If you’ve been waiting out these past few crazy years hoping for better deals, your patience is likely going to pay off big time.
  • We’re talking better inventory, a return of discounting, and even smoother processes at dealerships making everything feel like a breeze.

Sure, challenges remain (like always), but here’s something cool – satisfaction with car buying is expected to climb up again thanks mainly due to better inventory levels and oh-so-welcome discounts returning. Yes. Finally.

So there you have it folks — 2024 looks set to not only bring back some normalcy into how we buy cars but also promises nifty perks along the way such as improved vehicle values and happier customers overall. Now ain’t that nice?

Key Takeaway: 

Get ready to say hello again to the good old days of car buying. With more stable prices, better deals, and smoother processes on the horizon for 2024, it’s a great time to buy. Plus, expect overall satisfaction to soar thanks to improved inventory and discounts making a comeback.

Emerging Trends: EV Cost Parity and Growing Momentum

The electric vehicle (EV) landscape is changing faster than a sports car zipping down the highway. Shall we dive into the anticipations of 2024, examining what it unfolds for us?

The Electric Surge: A Look into the Future

Gone are the days when electric vehicles were just a distant dream or reserved for those willing to pay top dollar. We’re on the brink of something big—BEV cost parity. That’s right, folks. The gap between the price tags of EVs and their gas-guzzling cousins is narrowing.

A recent drop in average EV prices by $12,000 from November 2024 to November 2024 according to Kelley Blue Book, signals that these green machines are becoming more accessible. Now, I’ve gotta say, this change isn’t merely positive; it’s downright fantastic.

Implications for the Auto Market

This shift towards cost parity means several things for consumers and manufacturers alike:

  • Momentum Is Building: With lower prices comes greater adoption. People who once balked at EV prices might now give them a second glance.
  • A Green Revolution: More affordable EVs could mean a significant push towards reducing carbon emissions—a win-win situation if there ever was one.
  • Innovation On The Rise: As demand grows, expect automakers to roll out even cooler features and models. It’s like watching tech evolve but with cars.

This burgeoning “electric surge”, as some call it, doesn’t stop here though. Global competition among automakers is heating up as everyone races toward developing secure and advanced vehicles while navigating upcoming automotive industry regulations (McKinsey reports). In this dynamic contest, firms are not only catapulted into a realm of innovation but also compelled to reimagine ways in making green alternatives both more enticing and attainable for the average motorist.

All signs point towards an electrifying future where driving an EV becomes as common as streaming your favorite show online. So buckle up; we’re in for quite the ride come 2024.

Key Takeaway: 

EVs are hitting the fast lane towards affordability, making 2024 an exciting year for both consumers and manufacturers. As prices drop, expect more people to hop on the green bandwagon, driving innovation and a greener future.

Hybrid Vehicles: The Bridge to a Greener Future

As we cruise into 2024, the auto industry is shifting gears. It’s all about going green, but let’s be real – not everyone’s ready to jump straight into an electric car. That’s where hybrids come in, rolling out as the perfect middle ground.

Rise of Hybrid Vehicles in 2024

The buzz around hybrid vehicles isn’t just hot air; it’s backed by cold hard numbers. This year alone, expect their market share to zoom from 9% last year to a solid 14%. Why? Because most folks aren’t fully on board with electric cars yet. Hybrids offer that sweet spot – fuel savings without the sticker shock and they drive just like your old gas guzzler.

We’re seeing hybrid tech pop up everywhere – from zippy sedans and family-friendly minivans to beefy pickup trucks and every size SUV you can imagine. Even Toyota’s legendary Camry is getting with the times, switching over to being hybrid-only starting with its 2025 model year. And Ford? They’ve got a winner with their Maverick hybrid pickup truck that proves practicality doesn’t have to break the bank.

Role of Hybrids in Bridging the Gap to Full Electrification

Let me paint you a picture: think of hybrids as your trusty stepping stone across a river — one side is our current fossil-fuelled reality while full electrification waits on the other shore. These smart vehicles gently transition us towards an electrified tomorrow, ensuring no one feels as though they’ve taken a plunge into unknown waters.

The key here? Flexibility and familiarity. With searches for “plug-in hybrid” shooting up by 282% in five years (yeah, seriously), it’s clear there’s growing interest. And this trend shows no signs of slowing down anytime soon, as Bloomberg New Energy Finance predicts EVs will make up 10% of new car sales by 2025.

This bridge won’t last forever though; hybrids are set for peak popularity come 2029 before BEVs take over completely. But until then? They’re offering eco-conscious drivers who might not be ready for full battery power an efficient alternative packed with plenty enough pep.

Key Takeaway: 

Hybrids are hitting the sweet spot in 2024, offering fuel savings and a familiar drive as we gear up for an electric future. They’re not just a trend; they’re our bridge to going fully green without diving headfirst into EVs.

The New Era of Automotive Design: Centralized Zonal Architecture

Picture this: You’re cruising down the highway in a car that’s not just a car, but a finely tuned, AI-driven machine. This isn’t sci-fi; it’s the dawn of centralized zonal architecture in automotive design. It’s big news, folks.

Transformations in Automotive Design

Gone are the days when cars were simply about getting from point A to B. Now, we’re talking about vehicles as ecosystems on wheels. Centralized zonal architecture? It’s like giving your car a brain upgrade – integrating multiple functions into one smart system powered by high-performance sensors and AI.

This shift means sleeker designs with fewer wires cluttering up space (bye-bye spaghetti junction under the hood) and more room for innovation. We’re entering an era where your ride doesn’t just take you places; it knows you.

Impact on the Auto Industry

The automotive sector is witnessing a seismic shift that’s reshaping its very foundation. Traditional suppliers need to get creative or risk being left behind because as we see more automakers like GM bringing engineering and software development in-house, roles are changing fast.

  • Innovation: Suppliers have got to innovate at lightning speed – think new materials or smarter systems that can keep up with these integrated technologies.
  • New Opportunities: With great change comes great opportunity — especially for those who can pivot quickly and align with this new way of thinking about vehicle design and function.
  • Collaboration: It’s all hands-on deck as traditional lines blur between manufacturers and tech companies. Read more here.

We’ve seen major shifts before – remember when electric vehicles seemed like something out of The Jetsons? But this is different. Zonal architectures aren’t merely altering the mechanics of vehicles; they’re transforming their very potential into something more extraordinary.  And hey. If you’re asking for my opinion, that’s downright thrilling.

Key Takeaway: 

Centralized zonal architecture is reshaping cars into AI-powered ecosystems, making them smarter and sleeker. This big shift sparks innovation and new opportunities but demands fast adaptation from suppliers. It’s not just about changing how cars work; it’s about revolutionizing their capabilities.

EV Start-up Consolidation: Navigating a Correction Phase

The electric vehicle (EV) market is like the wild west right now. But, as with any gold rush, there comes a time when the dust starts to settle. That’s what we’re seeing with EV start-up consolidation. It’s not just about survival; it’s about shaping the future of transportation.

Trends in EV Start-up Consolidation

Nowadays, we’re at a crossroads where grand aspirations collide with hard truths. The truth? Building and selling EVs isn’t for the faint-hearted. Venturing into the electric vehicle market demands not just a hefty financial investment but also a profound mastery of technology. With everyone from legacy automakers to your neighbor’s garage startup jumping into the ring, things got crowded—fast.

Navigating this evolving terrain demands substantial financial investment and resilience against the onslaught from established car manufacturers making a shift to electric vehicles. For startups navigating this landscape, it’s tough out there. Lucid, Rivian, and Nikola are feeling this pinch, with whispers of Chapter 11 floating around.

Impact on the EV Market

This shakeout phase might sound grim but hear me out—it has its upsides too.

  • Focused Innovation: Fewer players mean those who remain can zero in on solving real-world problems rather than spreading themselves too thin.
  • Better Quality: As companies consolidate or bow out, resources get pooled into projects that have actual legs—leading to better quality vehicles hitting our roads sooner rather than later.
  • Growth Opportunities: For those standing last after this game of musical chairs? A clearer field could lead to stronger partnerships and strategic moves that weren’t possible amidst earlier chaos. 69 EV start-ups were noted ones to watch—but only some will make it through these turbulent times unscathed.”

In short, while “correction phase” sounds daunting, this period marks a critical step towards maturing and stabilizing both technology and economics within the broader auto industry.

Key Takeaway: 

The EV market is sorting itself out. With heavy costs and tough competition, only the strongest start-ups will survive. This consolidation means more focus on quality and innovation, setting the stage for a healthier industry.

Continued Supply Chain Disruptions: The Strategic Shift

With continued supply chain disruptions, everyone from big-time manufacturers to the everyday car shopper is feeling the pinch. Exploring this path reveals a complex landscape filled with challenges and uncertainties for all involved.

Impact on Auto Manufacturers

Last year threw curveballs like declining EV sales and strikes in U.S. factories our way. But that was just the warm-up act.

This year? This year, the upheaval is making car manufacturers question their entire approach, from sketching designs to getting vehicles into customers’ hands. Automotive supply chains are getting a major overhaul, aiming for resilience against anything thrown their way.

Implications for Vehicle Prices

You guessed it – prices aren’t immune to these shake-ups either.

  • A tighter grip on vehicle supplies can mean one thing – higher price tags at your local dealership.
  • Favoring consumers? Not so much right now, but there’s hope as more cars roll off production lines and back into showrooms.
  • The silver lining? A shift towards buyer-friendly markets might be on the horizon if inventory levels keep climbing up as seen recently by Cox notes.

We’re not just talking minor tweaks here; we’re witnessing an evolution in action—where every missed chip or delayed shipment pushes us toward smarter, more flexible manufacturing methods and pricing strategies designed with both peaks and valleys in mind.
So buckle up. The landscape of car buying is shifting gears fast.


As we conclude our exploration of 2024 insights for car dealerships, remember that you’re not alone in facing the challenges and opportunities of the automotive industry’s evolution. 

At The Ace Group, we’re dedicated to equipping dealership owners like you with tailored F&I solutions and tools designed to maximize your profits and drive success. 

To learn more about how we can support your dealership’s growth and navigate the road ahead together, don’t hesitate to reach out to The Ace Group today. Let’s embark on this journey towards prosperity together. Contact us now for more information and personalized assistance.