Estimates predict that deliveries related to light trucks and new cars are to reach 16.1 million by next year. This number is 500,000 more compared to the automaker selling capacity this current year. During 2007, the sales were a staggering 16.15 million and the next year’s sales are going to be nearer to that but substantially less from the peak figures of 17.4 million.
Market researchers dealing with the automotive industry are naturally amazed with these high figures especially because the sales seem quite effortless. There are no humongous incentives for moving the vehicles nor are there dumping of trucks and cars into fleets. The strength of the product themselves and the willingness of buyers are the factors behind such high sales figures.
1996-2000 was another highly profitable run for the US automobile markets. During that phase too, the sales showed a constitutive five-year growth. Detroit profited immensely from that booming market with high demands for SUV’s and pick-ups. In the process, their car lines suffered immensely due to negligence. In the post gasoline, price hike phase the industry was completely incapable to deal with the rising shift in public demands related to vehicles. The excess 16 million auto sales figures never reflected the gradually falling position of Detroit.
This time around, however Detroit is not going to repeat the earlier mistake. They are lining up competitive vehicles, which include mid-sized and even small cars by the automaker’s commanding the highest prices possible. Brands like Audi, Volkswagen, Hyundai, and Kia and getting into mix in keeping with BMWs and Toyota. The automakers this time are taking no chances and going for limited deliveries for rental car companies. No wonder such transactions are also turning profitable.
The staggering sales growth in the US auto industry predicts fastest expansions since the 1950s. According to industry watchers, demands are all set to return nearer to the 2007 levels by next year. Some believe that the market could even exceed the records set during 2000. Before next downturn, it can climb as high as 18 million.
