The U.S. Census Bureau says that 2045 is when African Americans, Asians and Hispanics will eclipse the white population in the United States. That’s why Marc Bland, Chief Diversity Officer for S&P Global, discussed “Winning the Future Majority Consumers” on Live Stage at NADA Show 2024. He presented current racial demographics based on new-car registration data from across the country and explained how dealers can expand their offerings to appeal to these market segments.
He guided the audience through the top selling brands and models for each racial group:
African Americans: Top brands: Toyota, Honda, Chevrolet; Top models: Toyota Rav4, Toyota Camry, Honda Accord
Asians: Top brands: Tesla, Toyota, Honda; Top models in sales: Tesla Model Y, Tesla Model 3, Toyota Rav4
Hispanics: Top brands: Toyota, Honda Chevrolet; Top models: Toyota Rav4, Toyota Camry, Chevrolet Silverado
In comparison, the top selling brands across the entire market are Toyota, Chevrolet and Ford; while the top selling models are the Ford F Series, Tesla Model Y and Chevrolet Silverado.
“This supports our philosophy that one size going to market does not fit all,” Bland says.
He also says that women make 51.6% of all car purchases among African Americans, a full 10 points higher than the industry average.
“Women will be key to winning the future majority consumers,” Bland says. “You want to reach black consumers, you have to go through the hearts and minds of black women.”
He added that a key statistic not on his slides is that “women influence household buys 85% of the time, especially an automobile purchase.”
Asians buy a larger amount of luxury brands compared to other minorities, 19.1% compared to Hispanics at 13.4% and African Americans at 6.9%.
The top two brands of luxury cars among all these groups are Tesla and Lexus. The top-selling luxury models among African Americans and Asians are the Tesla Model Y, Tesla Model 3 and the Lexus RX. Luxury car preferences among Hispanics differ slightly with the Tesla Model Y, Tesla Model 3 and the Lexus NX being the most purchased models.
The top-selling EV models among minorities are the Tesla Model Y, Tesla Model 3 and the Chevrolet Bolt. Top-selling hybrid models are the Toyota CR-V, Toyota Rav4 and the Honda Accord.
Bland showed data supporting that the largest growth market among Asians were Indians (growing 6.3% year over year), and that Asians account for 38% of all EV sales, purchasing about five times as many EVs as blacks. The most popular EV model by far is the Tesla Model Y.
“When we talk about the EV renaissance, we’re talking about one brand. We need to figure out how to get everybody in,” Bland says. “Everyone else is trying to get into the game.”
The largest pockets of EV sales are along the east and west coasts and nearest big cities.
Who’s buying the Model Y? The largest income tier among Model Y households were $125,000-$149,999 for African Americans, but $250,000 or more for Hispanics and Asians. The largest age bracket is 35-year-olds to 44-year-olds.
