American Brands are never known for making small hatchbacks or other fuel-efficient models. There was competition from Japanese brands with fuel-efficient and city-friendly vehicles that were also feature-loaded. Then there were German brands that were providing luxury and were known to be a status symbol worldwide. The Germans were having their fan base and were doing well worldwide.
The Japanese Promise
The Japanese cars were far more reliable than their American and European Counterparts. They were easy on the pocket with small fuel-efficient engines and were easy to repair. They outlasted their counterparts because the spare parts were cheap and durable. The Japanese cars were highly customizable and were popular with street racers. The Nissan GT-R and Honda Civic were some popular models, while Mazda was the favorite manufacturer, and Mitsubishi Evo was a model that everybody relished.
The Struggle of American Brands
The Americans were never known for small cars, and models like Chevrolet Aveo were a hit in Asian markets and were never accepted in America. Ford has a similar story, and they were never known for small cars with fuel-efficient engines. Cadillac, Pontiac, GMC, Chrysler, Dodge, and other manufacturers had never built a small car on their production lines. Naturally, they were losing customers to their Japanese counterparts. Still, American brands continued with big and heavy engines that were high on power and other capabilities.
The Evolution of The Market With a Contribution From Europeans
As we all know that German car makers are ahead in introducing technologies in the market. Other European car manufacturers follow them closely, while Americans are late to adopt. The fact is that the market is evolving towards SUVs. SUVs with big engines and 4x4 transmissions are getting everybody’s favorite. These cars have go-anywhere capabilities with the luxury of a sedan. SUVs are however difficult to park in the city but otherwise, they can outperform a sedan or a hatchback on the utility front. SUVs aren’t fuel efficient but Diesel engine availability makes them equally efficient to their petrol counterparts with better torque for hauling loads that a hatchback can’t even dream of.
The Current Forecast of the Car Market
According to the experts, car sales are getting affected by some of the factors that are listed below.
Inflation: Rising inflation is making it more expensive to buy a car, which could dampen demand.
Interest rates: Rising interest rates could also make it more expensive to finance a car, which could further dampen demand.
Chip shortage: The ongoing chip shortage is still causing production delays for some automakers, which could limit the availability of new cars.
Economic growth: The pace of economic growth could also impact the car market. If the economy grows slowly, consumers may be less likely to buy new cars.
New vehicle launches: The launch of new and innovative vehicles could boost demand in the car market.
The above points apply to every car manufacturer but Japanese car makers are not bringing in new models. The new models attract buyers to the showroom and are important to keep the existing prospective buyers hooked to the brand. Additionally, there are no new SUVs available in the already competitive market. The absence of SUVs in the Japanese portfolio keeps buyers away from their showrooms.
Japanese car manufacturers are working on hybrids and EVs but lately, the absence of SUVs is denting their sales. People are not trusting EVs and hybrids are too expensive. The EVs also have a range anxiety trouble and most prospective buyers are shying away because of the range anxiety.
New Car Buyers With Old American Cars
An American Car used car fetches better value in the USA. Cars like Mustang, Corvette, and Charger are some of the brands that outlast the heritage of a Japanese car company. There are others like Chevy Bel Air, Ford Thunderbird, and Dodge Challenger that are legacy. Japanese aren’t having that sort of legacy which is why people get attracted to the name itself and shy away from other brands.
If you are someone who owns one of those American brand names or even wants to sell some small Japanese car to upgrade to an SUV then contact Ion Cars. We are known to provide the best quote in the area of San Francisco and provide doorstep evaluation services. For a quick response, feel free to call or book an appointment on the Buy My Car in San Francisco website to get a cash quote for your old car in minutes. The experts get in touch with you at your preferred time and make the selling process hassle-free.
