With an unprecedented increase in auto sales during November, experts are predicting that the month of December is likely to spell further good news for the vehicle industry. CNBC had on its panel Jessica Caldwell, a senior analyst with Edmunds.com and the model which she mentioned as particularly doing well is the Honda CRB. Some of the other categories which she mentioned as being winners this season are compact SUVs’ and light trucks.
This rise in auto sales has been attributed to multiple reasons, primary amongst which is lower gas prices and rates of interest. Owing to these, buyers are confident than ever before of being able to make large payments. As expressed by Alex Gutierrez, An analyst with Kelley Blue Book –
“It looks as though the market is coming in very, very strong. Consumers came out in droves to take advantage of Black Friday deals.”
With the exception of Ford Motors, most of the leading automobile companies like General Motors and Chrysler benefitted from this trend. While Chrysler reported a 20% increase in its November sales, General Motors recorded a rise in its Chevrolet segment, namely Sonic and Cruze.
Comparatively, the trend has been mixed in case of luxury vehicles wherein brands like Mercedes and Lexus have emerged as winners where as Cadillac from General Motors showed an 18% decline. To a very great extent this trend could also be attributed to the improving health of the economy owing to which people might be recovering their purchase power and the beneficiary is the auto industry.
Low interest rates may be playing an instrumental role too, especially in case of big trucks where it might be truly an incentive as not to shell out a fortune to fulfill rate of interest. Oil prices have also tumbled down substantially and for a typical American family, things might be looking brighter for the first time since the recession.
This has been written by Vinita Basu.