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Low oil prices may rise not selling fuel-efficient cars

By: dream zhang

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Overall, the next one? In February is likely to occur within the oil up; while oil prices will reduce the growth of automobile market, especially in the low-end models (including the compact). In addition, many consumers will postpone the purchase of time or choose to reduce emissions; will be a strong focus on fuel consumption. This space Kuanshu of the Model and the fuel economy of Japanese cars will have a positive role in promoting. If oil prices significantly, it will auto market has the impact of the following aspects:
Compact market slowdown
Reporters that rising oil prices, the most affected in the following Model In addition, low-end SUV will also be affected. Subcompact car buyers used means of transport, its already limited purchasing power, high oil prices make the use they can not afford the cost. Despite the large number of compact cars this year, but the market capacity will not increase rapidly, on the contrary, the ratio will decline, while growth may be negative growth. This people prefer large space (the decision to use economic power and the family room is very important, imposing also a factor), compact car owners the weak capacity of anti-inflation.
Therefore, higher oil prices for the compact market is not good news. First of all, buyers in this market, their spending power is not high, use the higher costs will also affect the consumer; Secondly, there is no good news for state support (such as purchase tax relief, tolls and road maintenance, or the introduction of fuel tax, so almost everyone with a fee). Moreover, midsize and compact little difference between the oil expenses.
Hybrid and other fuel-efficient products and will not be selling
Hybrid market is not that big, and most buyers are not as fuel efficient or environmental reasons to choose this model, feeling individual, or avant-garde fashion down the real reasons may be. Therefore, people who have economic strength but will not buy fuel-efficient, weak purchasing power of people already can not afford (hybrid gasoline cars had the same level higher than the 20%? 35%).
Oil prices rose, Prius, CIVIC hybrid version and will not heat up immediately; and selling LEXUSRX400H or 600HL and ups and downs of oil prices has no great relationship, look at the price realized.
Consumption of high-end cars from the impact of large
High-end SUV, or car sales will not be greatly affected, because they would have on the price sensitivity is not high. If affected, probably because of the economic downturn led to decline in industry profits, or investment income shrinking, to buy time to delay or change of the vehicle replacement plan. Some reporter friends in the financial industry, have lowered the car this year's budget, which is an example.
Oil prices will slightly increase the cost of car production enterprises
Because crude oil production of many materials, raw materials, components, costs related to slightly higher, thus further raising the motor company's production costs. This is, for the tires, lubricants, plastics business was significant.

Article Source: http://depositarticles.com/

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