Paradigm shift to small cars
By Adina Moloman
As we’ve seen in an article before many Auto Manufacturers are trying to introduce small and mid size passenger cars into the North American market. The production base in this case is more often established in Mexico, considering the advantages mentioned before by working with Mexico Manufacturers.
Taking in consideration mainly the fluctuating gas prices and the unfavorable economic situation all over the world, the idea is that in the future the tendency is the shifting to small car production that will probably change the industry dynamics.
Lately, many international auto shows are promoting even more new small auto lines by the rising environmental consciousness.
There is a growing tendency among auto manufacturers world over to introduce new production lines of hybrid cars and compact, economic cars.
On the other hand there is a demographic component that is helping to make more popular this car among young people, mostly first buyers under age thirty are preferring small cars for a lot of reasons.
The consumption behavior might go through another shift from “wanted” to “needed”, due to the economic instability a large population sector will make this change.
The statistics are also showing that the small cars demand has grown by 50 percent over the last five years, which is definitely saying that we’re facing a growing market. Using the basic theories of how the market mechanism works, invoking the theory of supply and demand it is absolutely sure that automakers will work on attending this new demand.
The consumption of this small car style goes hand in hand with countries regulations that target a fleet’s average emission of gases combined with countries favorable policies that are motivating the consumption of this type of cars.
Also it is important the stimulation of low carbon vehicle technologies, even when carmakers are presenting their options of small vehicles it is important for a large sector that this new auto should respond to the necessity for comfort and security as a result of new technology investments.
