People Are Buying More Cars; Is The Automotive Industry Prepared?

Diversity in the automotive industry is symptomatic of an expanded consumer base. Apart from brand and model, car buyers are also looking at fuel consumption, hybrid structures, and other special features such as propulsion choices. The quality of demand gives little reason to think that the automotive industry isn’t holding up. In fact, it seems the car industry has been mimicking the smartphone market in that it seems to purvey new models at will.

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Image source: StrategyAnd.PWC.com

Production reality is far more complex and protracted in relation to the general perception of the ease of model turnovers in the automotive industry. Consumers commonly fail to appreciate the tedious research preceding manufacture, as well as the unrelenting quality control and safety measures that have to be hurdled prior to a new model’s release. Massive car recalls are economically damaging, as global brands like Hyundai, Kia, and Subaru painfully found out. And when these happen, the public can’t help but entertain thoughts of shoddy and rushed manufacturing processes.

In the last seven years, car sales in the U.S. saw a 73 percent increase. The latest sales figures this year are hovering near 20 million, and with the country’s booming population, a boom is still in the offing.

This spike in demand will not lower expectations of trends. Consumers want hybrids and electric vehicles now, and manufacturers with previously questionable carbon footprint are pressured to please this side of the market. Other market caprices—-down to the upholstery for the luxury segment—-are set to make car manufacturers and distributors catch their breaths.

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Image source: Autoblog.com

But the beauty of it all is that the industry seems to be coping well. For all those recalls, sales have always won out.

Jeff Lupient is the president and CEO of Lupient Automotive Group. Read more updates about the automotive industry by visiting this Twitter page.