As the world is returning to its
pre-pandemic state, people are becoming more interested in getting new cars.
However, car dealers tend to be struggling to offer car buyers the new cars
they want. Tasmania is actually better off than many state and territories with
an average waiting time of just 63 days compared to the national average of 112
according to PriceMyCar’s delivery
date analysis.
This is due to a wide range of issues
that will be discussed below:
●Low
supply of cars
In
most places around the globe, there is a shortage of car supplies. At first,
the shortage was caused by Covid-19 which made it difficult for car
manufacturers to work at their optimal level. However, another important
problem is the shortage of chips. As chips are scarce, it is increasingly
difficult for car manufacturers to produce high-quality cars that car buyers
need. Of course, this problem is not peculiar to Australia.
Even
if you are interested in buying used cars, you may still have challenges with
getting them. This is because many car owners are not willing to let go of
their existing cars. Even those that are ready to sell their vehicles will only
do so at exorbitant fees… sometimes more than the equivalent new
car price!
For the Tassie
locals, start by checking the price on a new car in Tasmania and
other areas within the country. Afterward, look for a reliable car dealership and check the
waiting times.
●Increased
competition
For
car dealers, increased competition is a challenge that cannot be overlooked.
Today, car dealerships are springing up in different corners of the country.
While this is beneficial to the buyers, it is disadvantageous to the existing
dealerships. Now, the dealerships have to compete with lots of others to get
the attention of the would-be car buyers.
Generally,
a potential car buyer can browse through a listing of numerous car sellers.
Unless a dealership stands out, it will be difficult to attract buyers.
Therefore, car dealerships now need to spend more on ads and other things that
can give them a competitive advantage over others.
●The
need to change to electric vehicles
Unless
you live under a rock, you would have
heard about electric vehicles. The truth is that these cars could bring a
dramatic change to our environment and boost our overall well-being. However,
there is still scepticism about the adoption of EVs in the country.
Firstly,
the government authorities are not doing enough to encourage people to make the
shift from fossil fuel-powered vehicles to EVs. Secondly, many individuals
still fear the battery capacity of electric autos. Thirdly, many car
dealerships are uncertain about whether they should start offering these cars
or not. This is because they doubt the possibility of selling the cars as
quickly as they would like.
Although
various steps are going on to tackle these challenges, they are still affecting
the auto industry in Australia. Nevertheless, we believe that improved battery
technology, government programmes, and incentives can speed up the shift to
EVs.
●Changing
technology
Although
changing technology is a positive phenomenon, it has brought lots of issues to
the auto industry. This is because it is difficult for lots of auto industry
players to stay up to date with the changing technology.
It
takes lots of time and money to keep up with the changing technology in the car
industry. But to be competitive, key players in the auto industry have to
follow the technological changes.
●Cost
of getting sales
Due
to the increased competition, car dealers cannot afford to sit back and expect
buyers to come to them. They need to invest in acquiring leads. Unfortunately,
leads don’t automatically translate into sales as many people will check autos
without buying them. According to a report, a few dealers are forced to spend
more than $600 on ads before selling a single car.
If
you are into selling cars, you must keep track of how much you spend on ads.
Don’t lose sight of the leads and, most importantly, the paying customers.
●Covid-19
In
addition to the problems above, we cannot help but mention the issues
associated with Covid-19. The pandemic has affected the purchasing power of
some buyers. Besides, some potential car owners now have lesser needs for
personal cars as they work mainly from home. Even lots of small business owners
are frustrated by the uncertainty surrounding businesses during this period.
Nonetheless,
this is not going to last till eternity. So, we can look forward to enjoying a
future without COVID-related problems for the auto industry.
In conclusion, all key players in the car
industry need to come together to tackle these challenges. |