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: For someone who spends an average of 135 days outside of the office meeting with clients, John Paul Strong remains the driving force behind his Birmingham-based advertising agency, Strong Automotive Merchandising. Strong began his career as a fresh-faced account executive at Martin Advertising. Learning much, but never satisfied, he convinced his father to partner with him in reopening their own advertising agency in 2004, catering exclusively to the automotive industry. The company started strong but humble. The original roster of 10 employees and eight clients has exploded today, growing to 100 full-time employees and more than 220 automotive dealers. And it hasn’t gone without notice. Along the way, Strong Automotive Merchandising has been recognized as a perennial winner in Birmingham’s Best Places to Work contest and as a Top 20 Agency among Google’s National Ad Partners. Yet, Strong still finds time to share what he’s learned along the way. As an avid writer, he has published two books in the Next Day Traffic series, along with more than 1,000 automotive-focused blog posts. He is also a member of the Texas Auto Writers Association, and his success has been recognized in the Birmingham Business Journal’s 2013 “Top 40 Under 40” feature and the 2017 CEO Awards. The foundation for Strong’s career began at the University of Montevallo where he earned a bachelor’s degree in communication studies and advanced public speaking. Always staying ahead of the competition, Strong later went on to study in Harvard Business School’s Executive Education Program. Amid all of his endeavors, Strong always makes time for what matters most – his family. He is a proud husband to Amy, and father to Lilly Grace, Anne Charlotte, Hudson, and Ford.