BCG – U.S. Auto Retail Survey, 2023

The BCG survey reveals that in 2023, US auto retailers are primarily concerned about the competitive dynamics with original equipment manufacturers (OEMs), both traditional ones looking to evolve their franchise distribution models and new ones focused on electric vehicles (EVs). The emergence of new EV OEMs has disrupted the industry with direct-to-consumer (DTC) or agency retail models. The rise of EVs also presents challenges for retailers, such as the need to invest in charging infrastructure and staff training, particularly due to the accelerated pace of the transition to battery-electric vehicles. This represents a notable shift in sentiment compared to the previous year, as highlighted by the BCG survey. In the previous year, the focus for auto dealers was primarily on the uncertain availability of new cars. The high demand and limited supply led to customers being willing to pay premium prices, resulting in excellent profit margins for dealers. However, last year's survey found that dealers were primarily concerned about securing future supply. Overall, the survey indicates that US auto retailers have shifted their focus from supply concerns to the competitive dynamics and challenges brought about by the evolving OEM landscape and the increasing prominence of EVs.