Table of Contents
Executive Summary
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- Figure 1: Short, medium and longer term impact of COVID-19 on auto and Hispanics’ loyalty, April 2020
- Market overview
- Top takeaways
- Issues and opportunities
- Hispanics are particularly vulnerable to the economic effects of COVID-19
- Brands can offer support and develop a relationship during difficult times
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- Figure 2: Hispanic vehicle owners who keep their cars until needed to replace, indexed to all, February 2020
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- Figure 3: Hispanics who serviced/repaired vehicle at car dealerships, indexed to all, October 2018-December 2019
- Technology needs to be put in context of overall value
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- Figure 4: Hispanics’ auto brand switching motivators, indexed to all, February 2020
- Communication is key to understanding Hispanics’ needs
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- Figure 5: Hispanics’ attitudes toward automakers, indexed to all, February 2020
- What Hispanics want and why
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The Impact of COVID-19 on Hispanics’ Loyalty in Automotive
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- What you need to know
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- Figure 6: Short, medium and longer term impact of COVID-19 on auto and Hispanics’ loyalty, April 2020
- Opportunities and threats
- The market calls for a more personal approach
- Brands have more time to make their case
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- Figure 7: Toyota Latino Facebook video post, March-April 2020
- Figure 8: Mid-South Ford Dealers Facebook video post, March 2020
- Impact on the market
- US auto sales drastically affected by shelter-in-place mandates
- COVID-19 can prompt Hispanics to review their transportation needs, opt for a car
- Longer term auto sales impact of COVID-19 will be bleak but not awful
- Post-pandemic auto repairs to be a boon to service and maintenance providers
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- Figure 9: Toyota USA Facebook video post, April 2020
- How the crisis will affect Hispanic consumers
- Hispanics’ occupations make them more vulnerable to economic downturns
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- Figure 10: Employed persons by certain detailed healthcare, transportation and sales occupations, by race and Hispanic origin, 2019
- Spanish-dominant Hispanics are more at risk
- Circumstances require Hispanics to have a pragmatic approach toward car ownership
- Potential shift toward sedans
- How a COVID-19 recession will reshape the automotive industry
- Auto industry impacted by global disruption to the supply chain
- Dealerships will need to continue to digitize
- COVID-19: US context
The Market – What You Need to Know
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- Hispanics are more likely to express intentions purchase a car within the next 12 months…
- …yet, they own fewer vehicles on average
- Four groups of Hispanics express loyalty in automotive differently
- Hispanics’ finances dictate some pragmatism
The Hispanic Car Buyer Prospect
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- Hispanics overindex for being in buying mode
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- Figure 11: Hispanics’ next car purchase timeline, indexed to all, February 2020
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- Figure 12: Hispanics’ next car purchase timeline, by language spoken at home and household income, February 2020
- Figure 13: Hispanics’ next car purchase timeline, by marital status, February 2020
Number of Vehicles Owned
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- Hispanics own fewer vehicles
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- Figure 14: Number of vehicles in Hispanic households, indexed to all, February 2020
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- Figure 15: Number of vehicles in Hispanic households, by area, indexed to all, February 2020
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- Figure 16: Being in a car with more than one person, by Hispanic origin and household income, April 2018-June 2019, October 2018-December 2019
The Market – Automotive Attitudinal Segments
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- There are four ways Hispanics relate to automotive brands
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- Figure 17: Hispanic automotive attitudinal segments, February 2020
- Worry-free Drivers (22%)
- Who are they?
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- Figure 18: Profile of Worry-free Drivers, February 2020
- Brand Partners (24%)
- Who are they?
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- Figure 19: Profile of Brand Partners, February 2020
- Brand Embracers (29%)
- Who are they?
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- Figure 20: Profile of Brand Loyalists, February 2020
- Brand Learners (25%)
- Who are they?
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- Figure 21: Profile of Brand Learners, February 2020
Market Factors
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- Lower median household income pushes Hispanics toward pragmatism
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- Figure 22: Median household income, by race and Hispanic origin of householder, 2018
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- Figure 23: Median income of all US households and Hispanic households, in inflation-adjusted dollars, 2007-18
- Figure 24: Household income distribution, by race and Hispanic origin of householder, 2018
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- Figure 25: Household annual expenditures on vehicle purchases, by race and Hispanic origin, 2018
What’s Driving Behavior – What You Need to Know
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- Value: The internet will shape loyalty and how people buy cars
- Experiences: Down-to-earth experiences is key to drive relevance
- Technology: Technology generates attention
What’s Driving Behavior
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- Figure 26: Mintel Trend Drivers
- Trend Driver: Value
- Using the internet to reshape value and loyalty with it
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- Figure 27: Cargurus.com Facebook post, March 2020
- Figure 28: TrueCar.com online ad, February-March 2020
- Trend Driver: Experiences
- Using down-to-earth experiences to drive engagement
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- Figure 29: Attitudes toward experiences with car, Hispanics indexed to all, October 2018-December 2019
- Trend Driver: Technology
- Using technology to start the conversation
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- Figure 30: Vehicle most recently acquired – features, by Hispanic origin and household income, October 2018-December 2019
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The Consumer – What You Need to Know
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- Loyalty is fragile
- Hispanics lag for owning SUVs and pickup trucks
- Hispanics are not as attached to their cars
- There isn’t one single factor that would prompt Hispanics to look elsewhere
Hispanics’ Loyalty in Context
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- Are Hispanics brand loyal?
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- Figure 31: Hispanics’ car brand purchases – second most recently acquired brand, by most recently acquired, October 2018-December 2019
- Loyalty helps create a positive narrative around the brand
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- Figure 32: Hispanics’ attitudes toward car brand preferences and expectations, indexed to all, February 2020
- Brand reputation keeps brands in the consideration set
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- Figure 33: Hispanics’ attitudes toward automotive brand perceptions, indexed to all, February 2020
- Price x brand = value
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- Figure 34: Hispanics’ attitudes toward price vs brand, indexed to all, February 2020
- Hispanics want to see more before pledging loyalty
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- Figure 35: Hispanics’ attitudes toward automakers, indexed to all, February 2020
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- Figure 36: Vehicle Hispanics most recently acquired – new vs used, indexed to all, October 2018-December 2019
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- Figure 37: Place where Hispanics serviced/repaired vehicle, indexed to all, October 2018-December 2019
Types of Vehicles Owned
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- Hispanics aren’t following general market car buying trends
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- Figure 38: Types of vehicles Hispanic households have, indexed to all, February 2020
- Can different car types drive loyalty?
- The case of SUVs
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- Figure 39: Hyundai Facebook post inviting for a test drive, January-February 2020
- The case of pickup trucks
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- Figure 40: Toyota Facebook post for Tundra 1794 Edition CrewMax, January-February 2020
- The case of minivans
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- Figure 41: Chrysler Facebook post for Pacifica Hybrid, February-March 2020
- Figure 42: Types of vehicles Hispanic households have, by automotive attitudinal segments, February 2020
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- Figure 43: Types of vehicles Hispanics households have, by language spoken at home and household income, February 2020
Emotional Connection to their Cars
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- Hispanics lack an emotional connection with their cars
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- Figure 44: Hispanics’ emotional connection to cars, indexed to all, February 2020
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- Figure 45: Hispanics’ emotional connection to cars, by automotive attitudinal segments, February 2020
- Older Hispanics are more appreciative of their current vehicles
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- Figure 46: Hispanics’ desire to keep their cars longer, by age, February 2020
- Passion for driving makes loyalty difficult
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- Figure 47: Hispanics’ auto brand switching motivators, by driving enjoyment, February 2020
- Spanish-dominant Hispanics embrace fluidity of US auto market
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- Figure 48: Hispanics’ closeness to their vehicles, by language spoken at home, February 2020
Switching Motivators
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- It’s about creating curiosity
- Hispanics are a forgiving bunch
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- Figure 49: Hispanics’ auto brand switching motivators, indexed to all, February 2020
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- Figure 50: Hispanics’ auto brand switching motivators, by automotive attitudinal segments, February 2020
- The arrival of children prompts Hispanics to re-evaluate car brands
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- Figure 51: Lifestyle change as Hispanics’ brand switching motivator, by presence and age of children in the household, February 2020
Appendix – Data Sources and Abbreviations
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- Consumer survey data
- Terms
- A note about acculturation
Appendix – Demographics
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- There are 61 million Hispanics in the US
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- Figure 52: Population, by race and Hispanic origin, 2014-24
- The Hispanic market is young
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- Figure 53: Hispanic share of total US population, by age, 2018
- Hispanics live in larger households
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- Figure 54: Average number of people per household, by race and Hispanic origin, 2018
- Figure 55: Households with related children, by race and Hispanic origin of householder, 2018
- Hispanics overindex for living in urban areas
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- Figure 56: Hispanics’ share of total population in urban, suburban and rural areas, 2016
Appendix – Consumer Data
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- Figure 57: Vehicle most recently acquired – new vs used, Hispanics by household income, October 2018-December 2019
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