A well-known market intelligence company, Infiniti Research, has announced the completion of their recent article on automotive industry trends: key takeaways from the first half of 2019. This article provides comprehensive insights into the performance of the automotive sector in the first six months of this year and also provides key insights for automakers to improve their performance in the second half.
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This year began on a sluggish note for the automotive industry. The gradual sales slowdown last year had already given rise several speculations on how this year would turn out for players in the automotive industry. Factors such as rising competition from the used vehicles market, federal government shutdown, and other weather-related events have contributed significantly to the poor performance of the automotive sector.
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Automotive industry trends and key takeaways
Tariff war with China
Earlier, there were threats being made to increase the tariffs for imports of Chinese goods into the U.S. Many of these items are used in the production of automobiles. Experts at Infiniti Research expect that increase in the tariffs on Chinese goods could significantly diminish the demand for new vehicles and hamper automotive industry sales.
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Trade dispute with Mexico
Mexico was also in danger of having tariffs levied on all imports this year. Mexico is a primary source of low-cost factory labor and materials to several automakers in the U.S. An increased tariff means that these automakers will lose out on much of their cost-savings. Although the government has decided to do away with the tariffs indefinitely, this issue can be expected to come up again anytime in the future.
Booming used cars market
Over the last couple of years, the sales in the used-car market has skyrocketed. This is one of the prime reasons for the first half of 2019 to have a sluggish start. Furthermore, the popularity of the used cars market is one of the key automotive industry trends dominating the sector right now. The rising price of new cars is also promoting the sales of used cars. If this issue continues to persist, the profits of automakers will decline in the long-run.
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About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies. To know more, visit:https://www.infinitiresearch.com/about-us