Today, the car industry is picking up faster than ever and most consumers are looking to get the best deals money can buy. Most auto companies that manufacture expensive cars are all trying to find major ways to attract consumer attention and in the process make bigger sales. As the vehicle competition heats up even more, manufacturers are jostling to get a greater portion of the market.
Some auto companies are making strong profits, especially in certain outlets worldwide as more consumer families see the need to own a vehicle. Like other industries, the car market fluctuates leaving an impact on profit margins, according to experts operating in the UK car industry. In addition, at other times vehicles tend to sell only during peak times. At other times, the market might seem to become slow and consumer sales will lesson during those times. Yet, the industry remains lucrative over the years.
US auto industry
The US auto industry is moving up because of high domestic demand coming from consumers for used and most expensive cars that are newly built. In 2014, auto builders in the US made about 11.37 million vehicles. However, this amount did not top the12.59 million cars record high achieved in 1999. American vehicle exports went up $2 million in 2014 and auto builders are hoping to see a rise by the end of 2015.
In some countries such as Mexico and others, US car exports are hurting the industry in those nations and this is especially true for new companies. On a daily basis, thousands of used cars leave the US and make their way across the border of Mexico to be gobbled up by Mexican consumers. While used car sales are lifting its head above water, Mexico's new car market is experiencing weak interest and lessening sales from the countries car buyers. Although new vehicles are better to drive on the road, still not everyone living in Mexico can afford to own new vehicles, which are some of the most expensive cars seen today.
As the US car market continues to make headway, car parts cost are causing great concern for auto builders. Although the US has a lucrative car sales going on today, still manufacturers have to depend on exported parts that reaches the country from places like China and Mexico as well as other countries.
In 2014 alone, US carmakers bought $138 billion dollars of car parts alone, which is a rise from $89 billion. However, with the country's dollar still escalating rapidly, carmakers in the US are able to purchase goods from overseas at reasonable prices.
As the US tries to find other markets to sell their most expensive line of cars, they turn to Japan hoping to gain entry to an already lucrative market underway. However, because of the already strong competition going on in the Japanese car industry, the US and Japan are experiencing large gaps on auto market access, according to Wendy Cutler an acting deputy trade representative working in the US.
Global car industry
Although Mexico car industry might be seeing a bit of a crunch in new cars sales, still, on the global level some countries that sell luxury expensive cars have been seeing growth regardless of the financial crises facing the world. Some top sellers like BMW, Mercedes-Benz, and Audi are leading in the luxury car market. When combine, the three car companies are holding an estimated 80% market share in the industry. BMW so far is outdoing Audi and Mercedes-Benz by capturing the greater share of the market. Still, competition runs high among the three rivals and by the end of 2015, the focus of investors will remain on whether BMW will continue being the leader or if the field will finally level out with Audi and Mercedes-Benz moving up the ladder.
Experts are predicting that China will grow their luxury and most expensive cars market at a compound rate of 12% from 2014 going into 2020. Meanwhile, on the global scene, the car industry will increase at a rate of 8%.
China's main key players in the industry are Audi, Mercedes-Benz, and BMW. So far, other car sellers in the business such as Infinity, Lexus, and Cadillac are all trying to get a foothold in the Chinese market. Four major places that sell the most expensive cars are China, US, India and Europe and all these places are trying hard to capture as much of the market as possible.
While competition is stiff in the vehicle industry, builders continue to concentrate their efforts in building top of the line cars to attract the rich and famous. So far, the most expensive cars are running the sales line and as long as they are built for consumers to like them, they will always attract sales at reasonable prices.