Various Emerging Trends In Automotive Industry
There is an increase in demand in the automotive industry due to the innovation of new vehicles. Dependent businesses, suppliers, and manufacturers are getting it more challenging in the competition due to the frequent demands from customers on the latest technologies in the automotive industry. The technological changes have affected people’s lives in a big manner.
There has become classification of various people. Those who are rich, the medium class and those who do not have.Trends that have emerged in the automotive industry have affected people both positively and negatively.Due to the customer preference in the automotive industry, several trends have emerged, and they are as follows;
Rise In Gas Cost
People used to compete on the kinds and models of the various cars they used to drive. But due to increase in the cost of gas, the fuel price has become very high, and this has made most people start selling the cars they have and buy the less fuel consuming cars. And even those who are buying cars for the first time, they are going for the less fuel consuming cars.
This increase has affected the automotive sector and caused fewer sales of expensive and fuel consuming cars. There is no more the saying that you are what you drive, but people have turned away from that pride to saving for an extra car. Those with big cars are trying to sell them to no avail because there is nobody who wants to spend an extra coin on fuel and not projects.
Price Rise In Used Cars
Due to the increase in the living standards and the frequent technological changes, prices of used cars has increased almost two times higher. This is because most manufacturers and suppliers are unable to obtain the required tools and machines to manufacture new cars and also they are unable to obtain and sustain an expert in the technology.
Since new cars are less in the market and very expensive to acquire, dealers of used cars have taken that advantage to raise the prices of used cars. On the other hand, those car buyers who used to buy new cars have turned to buying used cars, and due to this, we have experienced a price rise of used cars. The statement ( Old is gold) is becoming the order of the day.
The Productivity Rate
New cars are becoming much difficult to produce and manufacture due to the frequent technological changes in the automotive industry. These changes have become more expensive for the manufacturers to obtain frequency and that is why the productivity rate has gone down.
The new technology and skills that are required have become scarce due to lack of qualified personnel within a very short period. Also, the cars that are manufactured these days have several mechanical problems and of poor quality due to lack of expertise. The rate at which these cars are manufactured has also become slow as compared to the past.
All these trends have negatively affected the automotive industry, and the profitability rate has reduced due to decreased competition and lack of qualified personnel with the required skills.