Thursday 23 November 2023

Study: Toyota is the most trusted brand by dealers because it hasn`t switched to electric cars


The survey institute Kerrigan Advisors recently released the results of research regarding the level of dealer trust in automotive brands in 2024 amidst the onslaught of electric cars.

Of the 650 dealers randomly surveyed, 52 percent predicted their business valuation would remain high in the next 12 months despite the switch to electric cars.

“Positive sentiment makes almost half of dealers seek acquisition and expansion, which is certainly a support for the future of this industry,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors, quoted from Carscoops, Juat (24/11/2023)

“Dealers remain one of the most profitable investments with an average return on equity of 33 percent in 2023,” he continued.

From the survey conducted, the automotive brands that are expected to gain large profits are Kia, Hyundai, Lexus, Toyota and Porsche. In fact, 44 percent of dealers expect Kia dealer valuations to increase, double the industry average.

However, Kia and Hyundai are not the brands most trusted by dealers. Survey results show that Toyota and Lexus are the brands most trusted to make profits.

When surveyed, 72 percent of dealers expressed a high level of confidence in the Japanese car manufacturer with achievements three times greater than the industry average.

Kerrigan argues that much of this gap is due to differences in brands’ approaches to electrification. Dealers remain unhappy with the EV strategy adopted by automakers.

Thus, Toyota’s approach of not being willing to go 100 percent to electric cars has become an attraction for dealers.

But most dealers remain optimistic about the wider automotive industry in the year ahead, with 62 percent believing that their revenues and valuations will remain high.

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