In the news release, Catalyst IQ 2026 State of the Industry: Precision in Inventory and Pricing Will Define Automotive Retail Performance, issued 26-Jan-2026 by Catalyst IQ over PR Newswire, we are advised by the company that the first paragraph, first sentence, the text that reads "2026 State of the Industry Report by Catalyst IQ" should read "2026 State of the Industry" and be hyperlinked to "https://hubs.li/Q0409MPC0" rather than "https://www.catalystiq.com/hubfs/Catalyst%20IQ%202025/CIQ%20State%20of%20the%20Dealer/2026/CIQ%20JAN%202026%20Outlook_FINAL.pdf?hsLang=en" and that the third paragraph, first sentence, "Catalyst IQ's analysis" should be hyperlinked to "https://hubs.li/Q0409MPC0" as originally issued inadvertently. The complete, corrected release follows:
Catalyst IQ 2026 State of the Industry: Precision in Inventory and Pricing Will Define Automotive Retail Performance
As prices remain elevated and shoppers grow more payment-sensitive, leaders will be those who align supply, demand, and pricing in real time.
GRAND RAPIDS, Mich., Jan. 26, 2026 /PRNewswire/ -- Automotive retail performance in 2026 will be defined by highly precise decisions around production, inventory mix, and pricing, according to the 2026 State of the Industry report by Catalyst IQ 2026 State of the Industry.
Catalyst IQ, established earlier this year, integrates four of Advance Automotive's industry‑leading companies—Adpearance, Fox Dealer, Search Optics, and ZeroSum—into a single, comprehensive automotive marketing technology platform. Together, these organizations collectively serve more than 1,300 Tier 3 dealerships, delivering advanced data intelligence, performance marketing solutions, and operational insights designed to elevate dealer competitiveness and market efficiency.
Catalyst IQ's analysis shows that while demand remains intact, consumers are more payment-sensitive and quicker to disengage when pricing or payments drift out of range, making alignment between supply, demand, and price more important than at any point in the post-pandemic cycle.
Average new-vehicle prices ended 2025 at $49,992, up more than $12,000 from the COVID-era low, compressing affordability and narrowing the range of vehicles shoppers will seriously consider. In this environment, traditional correction mechanisms—such as late-cycle price moves or incremental incentives—are proving less responsive than the market itself, increasing the value of real-time intelligence and proactive adjustments.
"2026 is shaping up to be a year where precision matters more than momentum," said Rick Wainschel, Vice President of Analytics at Catalyst IQ. "Consumers are still buying, but only when the math works. When supply or pricing moves out of alignment with real demand, the correction now happens more quickly and with greater financial impact."
A new addition to this year's report, the Catalyst IQ Inventory Efficiency Index (IEI), measures how closely inventory levels align with consumer demand. An IEI of 100 represents equilibrium; scores above 100 indicate markets or brands with demand strength relative to supply. Brands such as Toyota (155), Chevrolet (116), and BMW (115) currently sit above equilibrium—requiring less incentive support, maintaining healthier margins, and retaining more flexibility to absorb short-term disruptions.
Additional themes from the report:
- Consumer caution: Buyers remain active but more selective; monthly payments are hard constraints.
- Inventory discipline: The market allows less time to fix supply mistakes; misjudging volume or mix creates faster margin pressure.
- Segment strategy: Used vehicles stabilize demand; hybrids anchor volume; certified programs face rising competitive pressure.
- Fuel & technology shifts: Hybrids drive near-term velocity, while EV demand becomes increasingly targeted and intent driven.
About Catalyst IQ
Catalyst IQ is an automotive marketing technology company that delivers data‑driven intelligence and high‑efficiency advertising solutions for OEMs, regional associations, and dealerships. Launched in January 2026, Catalyst IQ unites the strengths of Adpearance, Fox Dealer, Search Optics, and ZeroSum.
Catalyst IQ supports more than 1,300 dealerships and serves as a certified digital marketing provider for 22 Tier 3 OEM programs, giving the company a deep footprint across the automotive retail ecosystem.
At the center of Catalyst IQ's offerings is MarketAI®, the company's proprietary automotive intelligence software. MarketAI® tracks nearly 20,000 franchise dealers and 99% of independent dealerships nationwide, delivering real‑time visibility into market conditions and shopper behavior. This intelligence powers Catalyst IQ's marketing and advertising solutions across Tier 1, Tier 2, and Tier 3, helping automotive brands act faster, target smarter, and achieve stronger results at lower cost.
Catalyst IQ is headquartered in Ada, Michigan, with team members located across the United States.
Learn more at CatalystIQ.com.
About Advance Automotive
Created in 2017, Advance Automotive is a portfolio of automotive, technology, marketing, data, and software businesses providing AI-driven marketing solutions in the automotive industry. Advance Automotive includes independently operated agency Catalyst IQ, data and analytics from Cloud Theory and dynamic ad creation solutions from Hoot Interactive. Advance Automotive is part of Advance Local, a key unit of Advance, a privately held company founded in 1922.
Advance's portfolio of exceptional companies includes:
- Condé Nast
- Advance Local
- Stage Entertainment
- The IRONMAN Group
- ACBJ
- Leaders Group
- Turnitin
- POP
Contact:
Mike DeVilling
WestShore Public Relations
(248) 875-4207
SOURCE Catalyst IQ
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