Lithia Motors, an American automotive retailer, has taken the top spot in the auto retailing industry after a series of acquisitions outpaced the efforts of its closest competitor, AutoNation. AutoNation has held the top spot on the list of the largest auto retailers in the US since 1997, but was surpassed by Lithia Motors in 2022.
Lithia's acquisitions have allowed the company to expand its reach and increase its sales volume. In 2021 alone, the company acquired 40 new locations, bringing its total to 255 dealerships in 25 states. The company also acquired CarShop, a UK-based online used car retailer, in a move to expand its presence in the international market.
AutoNation, on the other hand, has been facing challenges due to the ongoing shortage of new vehicles caused by the COVID-19 pandemic. This has resulted in a decrease in new vehicle sales, which make up a significant portion of the company's revenue. While the company has also made acquisitions to expand its business, it has not been able to keep up with the pace of Lithia's growth.
The auto retail industry has been undergoing significant changes in recent years, with the rise of online sales and the shift towards electric vehicles. Lithia's success in the industry demonstrates the importance of adapting to these changes and expanding one's business to stay ahead of the competition.