Trends in the North American Auto Industry
Automotive industry trends change frequently worldwide and there is no exception for the North American auto industry. These changing trends may create new opportunities for automotive dealers to capitalize on.
Here are the most proficient trends in the North American auto industry:
- Energy Efficient Cars
As greater concern for environment and for high fuel prices means that energy efficient cars are increasing in demand. Most brands are staying on top of this trend and are launching more energy efficient cars. Hybrid and electric cars continue to gain popularity and it is affecting the market in a big way.
2015 is going to be a good year for new vehicle sales. Experts are anticipating 17 million new car sales in 2015 in the US, which is little higher than 16.4 million vehicle sold in 2014. Manufacturers are offering different types of technology, but the energy efficient car still the top sales. Making cars more fuel-efficient is becoming an increasing challenge for car manufacturers.
So let’s find out why people buying Energy efficient cars:
Compared with older models, today’s vehicle gets better fuel economy. Better fuel economy means better mileage. As a result you are saving money. Better fuel economy is the most important factor behind buying fuel efficient car.
Produce lower emissions
Some peoples buy fuel efficient car because they are concerned for the environment. The cars that use less fuel emit less carbon dioxide which is beneficial for the environment.
Electric vehicles are most fuel efficient. Electric cars convert up to 75 percent of the chemical energy from battery to power wheels. On the other hand, normal gasoline powered vehicles convert 20 percent of the chemical energy to the wheels.
- Lifespan of Cars
North American’s are holding onto their cars longer than ever before. According to IHS automotive report, the average age of the vehicle reached to 11.5 years. The average length ownership of new cars reached 63.9 months, which is 4.5 months up from the previous year. Let’s see why people are holding their cars for longer:
As North America slowly recovers from a recession, people are still tight on their budget. As a result, they are holding their car for longer.
Build Quality Improves
The quality of the cars has also increased leading people to hold their cars for longer periods. While this can reduce the car sales it increases the need for repair and maintenance.
- Lower used car Sales
In North America, interestingly, customers prefer a new car over buying a used car and this has lead to a decline in used car sales. There is a reduced supply of used cars, which increases the price of these cars leading people to buy new cars.