CBT News: Consumer demand shifts towards smaller vehicles due to affordability concerns
Adapted from GCADA Newsletter
CBT Now delved into spring 2024 sales results and what they mean for the automotive industry’s trajectory in an interview with Cox Automotive Senior Economist, Charlie Chesbrough, who analyzes the factors driving vehicle sales and what lies ahead for automakers, dealers, and consumers amid economic turbulence, shifting consumer preferences, and the upcoming election year, factors driving vehicle sales and what lies ahead for automakers, dealers, and consumers.
Key Takeaways:
- Affordability and practicality drive consumers towards smaller vehicles despite their need for functionality like cargo space or towing capabilities.
- Despite challenges such as high interest rates and global economic uncertainty, the automotive market has maintained a relatively stable performance, showcasing resilience in the face of adverse conditions.
- Cox Automotive’s forecast for 2024 suggests cautious optimism. It expects a modest increase in sales compared to the previous year.
- Affordability concerns heavily influence consumer behavior, focusing on monthly payments, operating costs (like fuel efficiency), and overall cost savings.
- While historically, election years may not directly correlate with vehicle sales; the current election year introduces additional uncertainties that could affect consumer confidence and purchasing decisions.
Read the original article and view the intervew on CBTNews.com: https://www.cbtnews.com/consumer-demand-shifts-towards-smaller-vehicles-due-to-affordability-concerns-charlie-chesbrough-cox-automotive/
