Automotive manufacturers have posted huge growth in February 2016. As US fuel prices went down significantly, it was expected that sales would rise. But nobody was expecting the best sales figures in the last 16 years.
Sales of cars surged in December, and analysts believe that 2016’s total will exceed 17 million, making it the fifth straight year of growth for the industry. Other aspects related to the current growth of the industry are closely related to the lower unemployment rate, improved consumer confidence, low-interest rates, and greater availability of credit.
The millions of new vehicle owners certainly add up every year in the buying market. The majority of them have also never enjoyed the luxury of large roaring engines. With fuel prices at current rates, they now have the chance to enjoy cutting edge automotive technology. Some sports utility vehicle (SUV) and truck manufacturers are expecting almost 200 percent growth compared to 2013 in both domestic and international markets. On the other hand, sales of hybrid and alternative fuel vehicles are down.
The main reason behind the disastrous fall in sales of relatively bigger vehicles was the economic recession and sky rocketing gas prices. These were the two main reasons the operations at several automotive manufacturing plants, particularly in Detroit, were shut down.
These two reasons not only forced manufacturers to lay off valued employees, they also forced plants to discontinue some decade-long best-selling vehicles. The most notable reason for the sharp decline in powerful SUV and truck sales in the past decade (while fuel prices were at their peak) is due to failure of the US automotive manufacturers to produce highly fuel efficient automobiles.
Generally, the automakers have shifted to adjusting production to demand overall. The manufacturers have adjusted the number of the units produced in relation to sales progress. This enables them to reduce losses of vehicles with bigger engines, and increase production of more fuel-efficient and hybrid vehicles should the fuel prices go up again. Irrespective of fuel prices, however, the automotive manufacturers are already working to achieve US Environmental Protection Agency (EPA) targets mandated from 2017-2025.
There is an argument among specialists that automakers should still shift towards hybrid and fuel efficient vehicles even while fuel prices are at record lows for various environmental and economic reasons.
However, current buying trends suggest that the relationship between fuel prices and vehicle choice is clear. Fuel price is a deciding factor in many consumer buying decisions. Other considerations consumers focus on include the ride, handling, and comfort. People who are interested in buying a SUV or truck are wise to do extensive research. Priorities should include safety, fuel efficiency, comfort, repair and maintenance costs, and insurance.
We can only hope that these buying trends of bulky fuel inefficient vehicles are a short-lived spectacle and that Americans make more reasonable decisions representing environmentally-friendly vehicle solutions in the years ahead.
Featured image via Flikr by MIKI Yoshihito available under a Creative Commons Attribution 2.0 Generic license
