By: Mary Guiterrez & Marissa Lopez
Within the past few years, it’s been said the Hispanic-American population is supposed to grow indefinitely. According to Orlando Business Journal, the Hispanic population will increase by “1 million per year between 2015 and 2020.” More Hispanics means more sales among different industries. One industry that should be paying attention to this growth is the automotive industry.
HIS Automotive Polk market says that, “Hispanics currently represent more than $44 billion dollars in new vehicles sales.” More often than not, Hispanic households tend to be larger than non-Hispanic households, and some still have Hispanic millennials living with them. This gives automotive dealers a higher chance to sell more cars to the same household and to gain more referrals. Just this past year, Hispanic consumers increased by 15 percent, which accounted for more than 250,000 sales.
According to Univision Mark Fields, President and CEO of Ford Motor Company, notices the importance of this growing market segment:
“When you look at the population and the demographics, it’s the fastest growing demographic. And we have worked very hard… to make sure that we have the right emphasis on this great community [of Hispanics].”
A big part of having success in the Hispanic market is to truly understand the cultural differences. Hispanics want a car that accommodates their family’s needs and the relationship with the car dealer is valuable to them.
Also, a big misconception about the Hispanic market is that they can’t afford luxury brand cars. Twenty-four percent of the Hispanic-American population had a household income of $75,000 last year. Plus, 100% of the growth in the luxury compact segment from the Hispanic market. These luxury brands such as Lexus and Audi are recognizing how important the Hispanic market is to their industry and have started focusing more on their Spanish-language marketing.
If you want to learn more about how to better target Hispanic consumers, check out our blog site here.