With half of the calendar year behind us, 1-2Q CY14 Hispanic new vehicle registration data is in, and the fact remains: Hispanic buyers continue to strongly impact the industry as a driving force behind total growth. Here’s a closer look:
Twice the Growth Rate of Total Industry: Total new vehicle sales grew +6% from 1-2Q CY14 versus 1-2Q CY13 while Hispanic sales rose more than double the rate of total industry, at +15%.
Large Hispanic Contribution to Total Growth: Hispanic new vehicle buyers are ideal consumers: 11 years younger on average and more likely to be part of a larger household. These facts may have something to do with the significant Hispanic contribution to total auto sales growth: 29% in 1-2Q CY14. That means nearly 3 in 10 incremental new vehicles sold were to a Hispanic buyer.
Leading Hispanic Brands See Strong Results: OEMs continue to see firsthand the value of the Hispanic consumer on their individual businesses. In fact, some brands have experienced significant ROI from marketing to Hispanics, with several experiencing new vehicle sales growth exclusively from Hispanic buyers.
- Toyota, the longstanding “Número Uno” (#1) new vehicle brand to U.S. Hispanics, and Nissan, who recently outsold Honda to earn the #2 Hispanic sales ranking, both saw their share of total and Hispanic market grow. Additionally 16% and 20% of Toyota and Nissan brand sales are from Hispanics respectively, while Hispanics contributed 38% of total brand growth for Toyota, and 29% of total brand growth for Nissan.
- Chevrolet, Honda, Ford, Hyundai and Scion all saw Non-Hispanic sales decline while 100% of brand growth came exclusively from Hispanic sales.
There’s no denying the auto industry continues to experience upward momentum, but what’s even more clear is how essential Hispanic new vehicle sales are to that growth. Is your brand capitalizing on this powerful growth driver?
Source: 1. Polk, New Vehicle Personal Retail Registrations (Sales and Leases), Enhanced Ethnic Data, CY 2011-2013, 1-2Q CY13 vs 1-2Q CY14, U.S. 2. Simmons NCS/NHCS Fall 2013 FY, Base: A18+, Most recently acquired vehicle was new.