Entering the new year 2017, an analyst is projecting decline on Automotive Industry by 200,000 sale drop which is equivalent to one factory production already. With the arrival of US President Donald Trump, will the automotive sales be given another chance?
According to a report from Autonews, Michelle Krebs the senior analyst for Cox Automotive, the reason behind the increasing drop in automotive sales are the increase of gas prices and interest rates. She mentioned that the increasing numbers affect and add pressure on household budgets.
One solution that can fix and regain stability on the Automotive Industry is US President Donald Trump. According to the same source, Trump's campaign discussed policies which can potentially help auto sales such as tax cuts. Although there is still a small dark side since it may add tariffs on imported vehicles.
Meanwhile, in Europe, a political turmoil causes consumers in committing with big money purchases. A report from Forbes states that "Investment researcher Evercore ISI believes sales will stagnate next year in all of Europe and forecasts sales of 15 million." They added, "Britain's decision to leave the European Union (Brexit) and tax increases won't help either, according to Britain's BMI Research, likely bringing 4 years of strong growth to an end."
Automakers with no hold barriers in advertising leasing deals and no-interest offers are still predicted to have sales drop. Fiat Chrysler is predicted to drop 14 percent sales after discontinuing its compact and midsize sedans. While Ford, Toyota, Honda, and Nissan are all projected to decrease 3 percent.
Although 2017 will unveil more new and attractive cars and SUVs such as BMW 5 Series, Skoda Kodiaq and much more. Manufacturers still need to fight off economic uncertainty. With that being said, consumers can expect more promotional offers and aggressive come-ons.
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