The most leading market intelligence players in the industry, Infiniti Research announces the completion of automotive industry trends 2019. Major takeaways from the first half of 2019 enclose deeper insights into the performance of the automotive sector. Also, it showcases the starting six months of 2019 and provides automakers to improve their performance in the second half.
In the previous years, there were risks regarding raising the tariffs for imports of Chinese goods into the United States. Most of the items are utilizing for the production of automobiles. Experts at Infiniti Research anticipate the increase in Tariffs on Chinese goods. This could majorly destroy the requirement of new vehicles and affect automotive industry sales.
Mexico also faced the challenge of having tariffs levied on all imports. The region is the only individual source of low-cost factory raw materials and labor to automakers in the United States. An increasing tariff is considering that the automakers will fall down on their cost-savings.
Over the last period of years, the sales in the used car market have witnessed significant growth. This is one of the major reasons for the first quarter of 2019 to have a lazy start. Furthermore, using the car market is one of the key automaker’s industry trends influencing the market. The increasing cost of fresh vehicles is also elevating the sales of used cars. If this issue remains constant to persist, the profits of automakers will decline in the future.
In 2018, the sales graph was sluggish and offered a growth with speculations on how 2019 would turn out for automotive industry vendors. The driving factors such as the federal government shutdown, increasing competition from the used vehicles market, and other weather-related events contributed to the poor performance of the industry.