CAR SALES RESEARCH

Car Sales Research



Car sales research

Why have car sales been affected so much in the last couple years?

Society of Motor Manufactured and Traders showed that 8.7% sales declined from previous year in 2007. The interest rates have been shifted to consumers along with increased excise duties. Luxury car sales are considerably down, continuously. Recession was the main cause of it all. Other reasons were low purchasing power, preference of used cars, decreasing loan credibility, unemployment, new technology introduced and recession etc.

Recession

Recession has caused many negative factors which have affected automobile industry the most. Those few factors are low consumer buying confidence, unstable economy, credit crisis, high fuel prices, etc. Due to recession; the large companies like GM and Chrysler are facing low sales, profit and volume when the sales declined for big pickup trucks. Instead they either are cutting costs or selling smalls cars or crossovers. It caused closing of various plants, low capacity utilization rates and operating capacity. The car sales faced the low sales in 40 years when the economy was still under recession. The main leading companies requested the government to take prompt action to restore confidence. Even the president George Bush said that United States has faced economic crisis and the recession which have made the industry collapse in the country. United States saw sales of cars and trucks estimating to be 11.6 million units which was increase of 11% from the previous year. In December 2009, the sales totaled 1.14 million units which was up approximately by 11% comparatively.

Sales methodology

Global market is being targeted now by the large companies such as Toyota, GM and Ford. A global platform with global operations is targeted to integrate future products. Especially Ford and GM are trying to save partial costs by extending their products globally. This will also help them have flexible factories which can turn models to meet the demands. This will help build cheaper cars and less dependent on a single model.

New technology Introduced

One of the reasons that sales of luxury cars fell was that the technology is also introduced in affordable cars as well such as leather seats, satellite navigate system and stereos. New tax levitation is also a reason affecting car sale. Another reason can be that banks have put restriction on auto financing policies to avoid defaults from car loans (Gupta, 2008).

Used cars preferred

Due to the situation of the economy, many buyers prefer used cars rather brand new ones. Due to this, prices of used cars have also increased. The economic recession faced in the period of 2008-2010 have affected the automobile industry of Europe and Asia, America and Canada. Increase in tax rates, also made car sales suffer. New Hampshire lawmakers helped the dealers by allowing them to continue servicing vehicles if the sales are dropped. If a dealer has to close down, he has the right to represent buyback inventory to re-open as used car shop or repair ...