Sales to Hispanics Outpacing the Market

May 21, 2015 / Automotive, Sales /

Stores that market to a heavier Hispanic population see a more consistent business model and are less affected by blips in the market and micro trends.  Autonews.com posted a great article that speaks to the rapid growth of this population segment as it relates to car sales but is visible by subscribers only. Here are a few items from the post:

Hispanic share race

Brands’ market share of U.S. retail registrations by Hispanic consumers:

2014 share                   2013 share

Toyota  16.90%             16.70%

Nissan  12.30%              11.80%

Honda  11.90%              12.40%

Chevrolet 9.20%             9.30%

Ford  8.50%                     9.00%

Kia  4.60%                        4.40%

Hyundai  4.50%              4.80%

Dodge  3.70%                  3.80%

Jeep     3.50%                   2.70%

Volkswagen 2.50%          3.00%

Source: IHS Automotive’s Polk market data unit

 

Driving the growth

Hispanic contribution to selected brands’ growth in retail registrations from 2013 to 2014:

Hispanic % of growth-

Honda  100%

Chevrolet and Ford*   96%

Hyundai/Kia   68%

Toyota  35%

Nissan  33%

*Combined

Source: IHS Automotive’s Polk market data unit

 

Not just California

The 15 cities of more than 200,000 people with the fastest-growing Hispanic populations:

2000-13 growth-

Charlotte, N.C.  168%

Raleigh, N.C.    138.90%

Atlanta  126.90%

Orlando            125.10%

Fort Myers-Naples, Fla. 123%

Oklahoma City  119.20%

Tampa, Fla.      112.20%

Palm Beach, Fla.     110.90%

Seattle-Tacoma            108.30%

Washington      108.10%

Las Vegas        103.70%

Minneapolis-St. Paul     98%

Kansas City, Mo.-Kan.  96.50%

Salt Lake City   96.50%

Austin, Texas   84.50%

Source: Nielsen

5 surprising facts

Some things you might not have expected about the Hispanic market:

  1. Among Hispanic buyers, the Chevrolet Silverado outsells America’s biggest-selling pickup, the Ford F series. A coincidence that “Silverado” sounds like a Spanish name?
  2. The average age of Hispanics today is 30, compared with 42 for non-Hispanic Americans. That translates to 12 potential years of additional car-buying life for the average Hispanic.
  3. Last year, 21% of Hispanic vehicle purchases were for a “first vehicle.” For the U.S. as a whole, the figure was just 5%. Interpretation: Brands get more chances to make first impressions, but dealers must woo uncommitted new buyers.
  4. The perception of Hispanic consumers seeking entry-level vehicles is becoming out of date. Last year, 24% of Hispanic U.S. households earned more than $75,000, up from 14% in 2000. Lexus and Audi have stepped up Spanish-language marketing.
  5. Ford comes close to matching Toyota in Hispanic-shopper interest levels but loses out in the end. During the final 12 months before making a new purchase, 15.4% of Hispanic intenders last year said they were considering Ford, just slightly under Toyota’s 16.1%. But in the fourth quarter of last year, Ford ended up with an 8.2% share of the Hispanic market compared with 16.9% for Toyota.

Sources: Univision, GfK Custom Research, IHS Automotive’s Polk market data unit


About the author

John Paul Strong: As owner of Strong Automotive Merchandising, a company that increases traffic up to 1,000% for dealerships, Strong lives by the simple concept that your attitude affects your success. Without a positive mind set he would not have been able to grow the company over the last decade from just 10 to over 80 full-time employees. The rapid growth is thanks to his ability to keep the company on the forefront of technology, market changes and an infectious talent to motivate and keep employees striving to fulfill their potential. His beginnings in direct mail gave him the tools and skills to develop incredibly successful marketing plans. From there he moved on to traditional forms of media and has now mastered the dynamic world of digital and social media advertising. With over 150 dealers to please, Strong takes a hands-on approach and personal attention to detail in all aspects of marketing strategies. His expertise in plan development gives him a keen sense on how to maximize a dealer’s budget and ultimately increase their bottom line. Strong is a passionate speaker in the automotive industry. He has authored two books on creating next day traffic. He graduated from the Executive Education Program at the Harvard Business School. Strong received a B.A. in Communication Studies from the University of Montevallo. He lives with his wife and three children in Homewood, Alabama.