As we inch closer to the end of 2020, it looks like the automotive industry has managed to find a bit of stabilization. New- vehicle inventory and prices are doing fairly well, and there’s an increased supply of electric cars hitting the market. Cox Automotive has released a new report breaking down the changes and what they mean for consumers.
1. A Balanced Market: New Vehicle Inventory and Prices Register Signs of Stability
As cars and trucks are rolling off assembly lines, consumers can be glad to know that the industry is balancing itself out. No longer the chaotic atmosphere of rapidly increasing prices, early 2020 now provides an arena of equilibrium. The following are key signs of stability across the market.
- New Vehicle Inventory is High: With automotive plants re-opening, new car dealers have been able to restock inventories on a continual basis. From pickup trucks to SUV’s and Autonomous vehicles, consumers have a range of choices to suit their individual needs.
- Prices Remain Stable: Profiteering in this sector has been largely avoided, with manufacturers even forging deals and discounts to keep prices low. This serves as a welcome reprieve for those in the market for a new set of wheels.
Amidst the current environment, the automobile industry has managed to find a market equilibrium that rewards both the industry and the consumer. Assemblers will continue to churn out vehicles and prices will remain affordable, providing a positive outlook for this sector.
2. Electric Vehicles Make an Impact as Their Supply Expands
Electric vehicles (EVs) are leading the charge when it comes to transportation of the future. With automakers all over the world investing in this new technology, there’s no doubt that electric vehicles are here to stay. On top of that, an increasing number of models with different battery configurations, ranges, styles, and sizes are being developed to meet the demands of the modern driver.
The growing selection of EVs has driven down the cost of electric cars and infrastructure, making them more accessible to consumers. Governments have also incentivized their purchase with tax deductions and a variety of other perks. This has created a much needed boost in the EV market, making electric vehicles a viable and attractive option to the mainstream consumer.
- EVs are quickly becoming more popular
- The selection of models is increasing
- Prices are getting more affordable
- Governments are incentivizing their purchase
3. The Outlook from Cox Automotive on the State of the Automotive Market
Cox Automotive is one of the leading automotive research and forecasting groups. They have weighed in on the current state of the automotive market and believe that it is in flux. Here are the key takeaways from their outlook:
- Global automobile market expansion is gradually slowing in the face of weak consumer demand and a challenging global economic landscape.
- Automaker and dealership inventories are becoming increasingly bloated, with a supply exceeding immediate demand.
- Uncertainty looms, as automakers and dealers adjust their strategies to meet consumers’ changing preferences and behaviors.
Sales throughout the year may be impacted by these challenges, but Cox Automotive remains optimistic about the potential for certain segments of the market. The SUV and truck segments have held steady throughout the year, while electric and autonomous vehicles show signs of resilience in the long-term. Companies are turning their attention to newer revenue streams as OEMs attempt to differentiate themselves and remain relevant in an ever-evolving landscape.
4. What it Means for Auto Consumers
Using Automated Vehicles
- Automated vehicles will dramatically change the driving experience, eliminating the need for drivers to be constantly alert and engaged.
- Auto consumers will have the opportunity to select a range of automotive models to meet their individual needs.
- Having an automated vehicle means an increase in convenience and safety.
For auto consumers, the introduction of automated vehicles presents an unprecedented opportunity. Driving will no longer be a chore, as the vehicles will use sensors and algorithms to manage traffic and optimize the route. Auto consumers can then relax and enjoy the drive, with the assurance that the job is taken care of.
The use of automated vehicles also increases safety, as all occurrences will be recorded and monitored. This will not only create a safer driving experience for drivers but also protect them from liability in the event of an accident. This new technology promises increased convenience and protection for both drivers and passengers, making the roads a safer place for everyone.
Cox Automotive’s report provides an encouraging outlook for the new-vehicle market, and the increased availability of EVs indicates that the industry is moving in the right direction. It remains to be seen how the current pandemic will affect the future of new-vehicle inventories and prices, but it is encouraging to see such a stabilizing market and growth in the EV sector.
