Gloomy Auto Market Shifts Cars Preferences

Gloomy Auto Market

The auto industry is still bleeding amidst the global downturn crisis, yet there is a strong evident that the rate of sales falling diminishes gradually. Some confident has just appeared on some segment of the auto market. Whilst the clunker subsidy may have helped the German Auto industry, their counterparts in US soil will have to wait for a month or two to be seen. However there is a shed of light for US auto market to regain upward trend, as U.S. auto sales fell 27.7 percent in June, marking the smallest drop for the industry in nine months.

In general truck sales no longer beat those of other category vehicles, despite of the bottoming out of car sales and due to rising gas price midsize cars are now on the lead with Camry at 26,000 units in 2009 June. However there are two light trucks at the top three vehicle sales sandwiching Camry’s sales position.

Across the Atlantic the German automakers association, VDA, recently has increased its forecast for 2009 new-car registrations in Germany to over 3.5 million from over 3.1 million previously, after 40% rose in June. Though it is expected new-car sales will plunge in 2010 to a record low of 2.6 million vehicles due to government incentives that pull demand forward into this year.

The latest data also shows the bottoming out consistency over previous month’s contrastingly weak sales figures as relatively good news for German industry in general. BMW said sales of its brands, which include Mini and Rolls-Royce, shed 18.3% in May on a 12-month basis, a figure that was nonetheless better than April's drop of 24%. Daimler's Mercedes-Benz division said May sales were off by 12.4%, but that was almost half the loss of nearly 24% reported in April; as Audi limited its losses to 6.1% in May compared with the same month a year earlier.

Volkswagen's high-end auto brand continued to fare better than its rivals, but the result was still in deterioration from Audi's fall of 5.6% in April. Overall for the first five months of 2009, BMW delivered 487,906 vehicles, or 21.1 % fewer than in the same period of 2008; Mercedes-Benz sold 433,100 cars, which was also a drop of 21.1%; whilst Audi sold 374,350 cars, for a more modest decline of 12.1%.

Car Preferences Shifts

The auto market has been changing rapidly mostly to customer‘s preference shifts. While some prefer to retain its car longer, the induced government subsidy could also drive preference into smaller efficient cars. Certain region has still shown midsize preferences over compact cars for safety perceived image.

Purchasing new compact car invites more clunker subsidy which allowing for better MPG as well as more environmental friendly, hence new compact cars review is gaining popularity more than ever. This includes lower segment of super small car review such as sub one liter engined Peugeot 107 in European auto market.

As purchasing power has substantially dwindled, many potential new car buyers are seeking alternative buying scheme; for example such as importing cheap Peugeot for UK market. And some may have opted for car pool scheme instead or hiring car for week-end occasion. Yet the majority would have to stick to their older classic cars that certainly must have good reliability traits. Which brand fares the best?

Despite its recent Le’Mans triumphant win Peugeot reliability reigns at the bottom, as a matter of fact most European Car reliability is still lagging behind its Japanese counterparts. The best reliable cars in UK unsurprisingly includes two Hondas, the winner being a sport compact S2000 followed by small hatchback Jazz or Fit.

For much older car the choices are still on Honda or Toyota brands, but we could desire reliable old European car too! Provided such cars are still equipped with open loop engine management; mostly cars that were produced prior to or during the introduction of multivalve engine technology . For example Mercedes Benz; W123, W124 and W201, BMW; e28, e 30, e 34 and e36.

Technorati Tags: Auto market,car preference,engine technology,bmw reliability,mercedes benz reliability