|
2004 Online Automotive Market Report
|
| Where the automotive market is heading, and how online shoppers are leading the way |
|
| Updated |
Jun 10, 2004 22:38:41 |
| Rating |
 20 ( -6 -30% ) | | Author | Brian Chee |
|
|
Description:
When it comes to shopping for a car, few outlets for information are as powerful and as comprehensive as that of the Internet. Within a click or two, prospective shoppers can learn just about everything there is to know about their favorite vehicles. From reviews to specs and consumer feedback, the Internet has become the most powerful conductor of vehicle sales. The medium that has been on the verge of making its presence felt in the automotive community is beginning to get into stride: according to the Merrill Lynch/Cap Gemini 2003 Sales Satisfaction Index Study and the J.D. Power and Associates 2003 New Autoshopper.com Study, the Internet now has more influence on new car buying decisions than television or traditional newspaper ads.
Of those shoppers who chose the Internet, Autobytel web sites attracted an average of 7.7 million unique users (2004 comscore media metrics) a month, and Autobytel purchase requests accounted for 6% of all vehicles sold - or one in 17 vehicles driven off the lot. As a result of its significant role in the actual vehicles shoppers purchase, Autobytel has a unique insight into the most popular online vehicles and of upcoming trends in the market. For more information about the current Autobytel Consumer Choice Award winners, click here. In 2003, several interesting trends appear to be taking shape, purchase indicators that will have an impact on who takes the lead among online shoppers, and, ultimately, online vehicle sales:
The King arrives
Long the ultimate offline sales leader, Ford's F-150 has trailed import passenger vehicles and the Chevrolet Silverado when it comes to Autobytel purchase requests. That is changing with the introduction of the 2004 F-150, the redesigned truck that has received widespread critical acclaim. Online shoppers have responded in kind: in the final quarter of 2003, the 2004 F-150 outdistanced all truck competition, and the combination of new 2003 and 2004 models made it the top vehicle chosen by Autobytel online shoppers in the quarter. This indicates that upgraded features and improved vehicles are of significant interest to Autobytel online shoppers - enough so that they will, to a certain degree, eschew price discounts and finance incentives.
Hybrids are coming
If you didn't think so, think again: the long gathering storm of hybrid-capable vehicles is, officially, on its way. Led by the online success of the remade 2004 Toyota Prius - named the North American Car of the Year at the recent 2004 North American International Auto Show - Toyota is poised to introduce two new hybrid SUVs this year. Ford also plans to introduce a hybrid version of its popular Escape SUV. Toyota, however, has jumped out with a Hybrid Highlander and a Hybrid RX for Lexus, named the RX400h. Our prediction is that if priced competitively, the combination of SUV convenience and compact sedan fuel economy will resonate with our car shoppers, and these vehicles will enjoy robust popularity. Like the Prius in the final quarter of 2003, we look for hybrid vehicles to make significant purchase request gains during 2004.
Ford and Toyota moving forward
Clearly, redesigns and hybrid technology have an impact on Autobytel shoppers and their buying decisions. It's no coincidence, then, that two of the more aggressive automakers in these areas are poised for increased success in 2004. When compared to results from the first quarter of 2003, fourth quarter purchase requests for significant Ford and Toyota vehicles were resurgent. For Ford, the new F-150 led the way, combined with increased interest in the Explorer and a discount-fueled preference for the out-going Windstar. The Ford Mustang also reported improvement during the final months of the year, and easily won the Consumer Choice Award in the sports category. Led by the F-150, and several new vehicles to debut later this year - including the 2005 Mustang and Focus - Ford should continue to gain favor with Autobytel online shoppers. And though the F-150 will continue to be its online request leader, Ford should make serious inroads into the import's passenger car stronghold.
Toyota, meanwhile is resolutely moving upward. The redesigned Toyota Sienna was such a rousing success during the latter part of 2003 that it actually gained more purchase requests than the Honda Odyssey, the traditional favorite among Autobytel shoppers. Look for Autobytel shoppers to choose the Sienna as the most popular minivan in 2004. Toyota's edge in hybrid vehicles will turn out to be a big advantage, as the Hybrid Highlander and the Hybrid RX are set to debut and should be popular among Autobytel shoppers. As evidenced by the '04 Prius, online shoppers seem to be telling automakers that they simply need a "pocketbook reason" to buy hybrid. Toyota's two SUVs - especially the Lexus - should provide reason enough for our online researchers.
A major area of growth for Toyota could also be the truck segment, as the new double cab Tundra takes hold and they begin to make more Tundras available on dealer lots. Their new Tundra plant, located in San Antonio, Texas, should increase production and boost sales. Of concern for Toyota are slumping purchase requests for the Corolla. Judging from late-year purchase requests, the Corolla - even with the anouncement of the sport-tuned XRS - is losing ground to competitors. This may partially be a result of the success Toyota has had launching the Scion brand. Though it's too early to tell, trends tell us that Scion may well be one of the more popular niche brands among Autobytel shoppers in 2004. Toyota will also face increased competition in 2004 from Ford's passenger vehicle debuts, and the expected success of Chevrolet's Cobalt sedan.
Trucks are the thing
Autobytel shoppers are getting more interested in trucks, and purchase requests for trucks should outpace those for passenger vehicles in 2004. And while purchase request data has traditionally showed a tilt toward import sedan sales, 2004 will be different because imports are more involved in trucks and SUVs, and trucks have become the equivalent to cars when it comes to comfort and interior convenience. Case in point: the 2004 F-150's significant interior upgrades, and the rousing success of the Nissan Titan. On its own, Titan will significantly move this segment toward the lead.
Interiors and style sell
Judging from the type of vehicles chosen most often by Autobytel shoppers, interior quality and stylish exteriors are almost - if not moreso - important than price breaks. For example, the new F-150, Honda Odyssey, Toyota Sienna, BMW 3 series and Honda Accord each were very popular - even though there were more affordable vehicles available. Indications are that automakers are in sync with this and are beginning to put more resources and engineering into interior production. The 2006 Pontiac Solstice and the 2005 Ford Mustang boast refined interiors sure to please prospective buyers.
Minivans are caliente!
Autobytel shoppers turned to a new breed of minivan during 2003 - a more stylish, crossover style van that offered maximum features and style. During the late months of 2003, the Sienna and the Nissan Quest were very popular, as was the Mazda MPV and the Ford Windstar. This indicates two types of minivan shopper: those interested in getting the best deal possible, and those who, if the van is stylish enough, are willing to compare it to their favorite SUVs. For families, minivans continue to offer the best convenience - if designed to reflect today's premium on style, this segment could rediscover some of its past glory. On a down note for domestics, import auto makers have been much more aggressive in gaining share in this area, and though the redesigned Windstar (now named Freestar), the Mercury Monterey and the reconfigured Caravan lineup will soon make their mark, the Sienna's success should continue. The Quest, meanwhile, which is arguably the most stylish of all minivans, should continue to sell briskly. And though there have been no rumblings to support such a claim, one has to wonder: who will build the first hybrid minivan? |
| Similar news: | - Market Report - Encouraging comments on the US economy from Federal Reserve chairman Alan Greenspan helped the London market to put back some of its recent losses today.
- Online Retail Sales To Surge in 2005 - Online retail sales are expected to reach a record US$172.4 billion in 2005, a 22 percent increase over last year that is driven by sales in travel services, cosmetics and jewelry.
- Ford Sees Weaker Profit in 2005 - Ford Motor Co. on Tuesday saidearnings will fall this year due to a drop in profit from itsfinance unit, which it expects to be hit by rising interestrates.
| | Find all news similar on 2004 Online Automotive Market Report |
|
