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Industry Landscape
The automotive dealership industry in the US is undergoing significant transformation, driven by evolving consumer preferences for online purchasing, increased demand for electric vehicles (EVs), and persistent supply chain challenges. Dealerships are adapting by enhancing digital platforms, offering diversified inventory, and focusing on customer experience to remain competitive.
Total Assets Under Management (AUM)
New Light Vehicle Sales in United States
~15.6 million units (2023 preliminary)
(12.7% CAGR)
- Sales rebounded strongly in 2023 from 2022 lows.
- Growth driven by improved inventory and sustained consumer demand.
- EV sales are a growing segment within total light vehicle sales.
Total Addressable Market
1.8 trillion USD
Market Growth Stage
Pace of Market Growth
Emerging Technologies
Artificial Intelligence (AI) for Personalization
AI can analyze customer data to provide highly personalized vehicle recommendations, financing options, and service reminders, enhancing the online and in-dealership experience.
Virtual Reality (VR) for Showrooms
VR technology allows customers to virtually explore vehicle interiors and exteriors, customize features, and even conduct virtual test drives from anywhere, overcoming geographical limitations.
Blockchain for Supply Chain Transparency
Blockchain can provide immutable records for vehicle provenance, maintenance history, and parts tracking, building trust and streamlining operations in the used car market.
Impactful Policy Frameworks
Inflation Reduction Act (IRA) of 2022 - Clean Vehicle Tax Credits
The IRA of 2022 includes tax credits for new and used clean vehicles, with specific requirements for battery component sourcing and critical mineral extraction/processing, aiming to boost EV adoption and domestic manufacturing.
This policy directly impacts Smail Auto Group by influencing consumer demand for eligible EV models and requiring dealerships to understand and communicate complex eligibility criteria to customers.
Federal Trade Commission (FTC) Combating Auto Retail Scams (CARS) Rule of 2023
The FTC's CARS Rule, effective July 30, 2024, prohibits deceptive practices by auto dealers, including hidden fees, bait-and-switch tactics, and misrepresentations about financing or add-ons.
This rule mandates greater transparency in pricing and sales practices for Smail Auto Group, potentially requiring adjustments to their sales processes and advertising to ensure compliance.
National Highway Traffic Safety Administration (NHTSA) - Fuel Economy Standards (Ongoing Adjustments)
NHTSA continuously updates Corporate Average Fuel Economy (CAFE) standards, requiring manufacturers to produce more fuel-efficient vehicles, which impacts the types of vehicles available for dealerships to sell.
These ongoing adjustments influence the inventory mix available to Smail Auto Group, pushing them to stock more fuel-efficient and potentially electric models to meet consumer and regulatory demands.
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