Market intelligence firm, Infiniti Research, recently released an article on the top challenges facing American automobile companies in 2019. This blog discusses the key U.S. automotive industry challenges to expect this year and also suggests strategies to overcome them.
The past couple of years have been increasingly difficult for American automobile companies due to wrenching changes in global economies, stricter government regulations, technological innovations and relative prices. Planners in the automotive industry must now prepare for some of the most fundamental transformations that the American automobile companies have ever witnessed. In order to overcome some of the critical automotive industry challenges this year, strategic planners must look beyond traditional issues and address much bigger and basic concerns.
New Ideas About Car Ownership
Monthly subscriptions are becoming increasingly popular among American consumers. As a greater number of customers are becoming more comfortable with paying for services that they want and then canceling when they are done, eventually this may extend to the automobile sector. By paying a monthly fee for a car gives consumers access to vehicles, insurance, maintenance and roadside assistance.
New Regulations And Technological Demands
American automobile companies are facing pressure from stringent regulations that focus on reducing harmful gases and emissions from vehicles and thereby improving fuel economy. This is one of the key automotive industry challenges worrying players in the sector right now. Automakers will soon be required to make choices relating to technology that is in line with the changing regulatory and societal preferences.
Rising Market Competition
Several mature automotive markets such as Japan and Europe are already facing the heat from flattening sales, and automotive industry challenges such as slow demand conditions are expected to affect the North American markets over the next couple of years. The dwindling growth opportunities mean that there will be greater competition for the market share.
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