Sales to Hispanics Outpacing the Market

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