According to a new report by eMarketer, “U.S. Hispanics and Autos: The Next Generation of Growth”, Hispanics are more likely to buy a new car than the general market and posted a higher year-over-year sales volume growth than all other minority groups.
Hispanic new vehicle sales grew 16% from H1 2012 to H1 2013 compared to U.S. growth that was only 9% during the same time period. Hispanics share of the industry was 11.25% in H1 2013 and is forecast to grow to 13.25% by 2016. Overall, Hispanics spent $32.7 billion on new vehicles and leases in 2012. The recent increases in Hispanic auto sales are driven from higher rates of population growth and gains in disposable income.
Compelling incentives, need for a new vehicle, and low monthly payments were among the top reasons why Hispanics shopped for a new vehicle, according to a July 2013 survey by CNW. In most responses Hispanics mirrored the overall market, but over-indexed in the need for a new vehicle. In the survey, 65.4% of Hispanics stated “a need for a new vehicle” compared to only 54.1% of the general market.
Foreign auto brands command the highest share of U.S. Hispanic consumers based on sales volume, with Toyota leading (16% of all sales), followed by Honda (13%) and Nissan (12%).
These figures reinforce the importance of marketing to the multicultural consumers as they transition to the mainstream population. Read the original eMarketer article here.