Automotive analysts: These are the biggest losers and winners in 2023!
by SEAD DEDOVIC | VIEW 167
In 2023, it does not seem that there will be a lot of hope for German car manufacturers on the market. Ferdinand Dudenhöffer, the director of the private research institute Center Automotive Research (CAR) in Duisburg, believes that, when it comes to European car sales, it is a "sad picture" as far as the automobile industry is concerned.
Dudenhöffer's analysis shows that the excess buying of new cars is only caused by disrupted supply chains, as well as a shortage of semiconductors and other key components. There was a special situation that occurred during the pandemic as well as the lockdowns.
All manufacturers produced fewer cars than planned, so there was a decrease in the supply of cars worldwide as well. Produced products were sold with huge margins on top of what they cost. In order to compete in the industry today, steep discounts are no longer a common occurrence.
Earlier this year, according to Dudenhöffer, that practice will come to an end. "Order lists will be shortened, so buyers will be in demand. Inflation and high energy prices, as well as recession, will slow down the purchase of new cars.
This year brings a revival of rebates on car purchases," he said. As Dudenhöffer sees it, Europe is going to lose out in the end. It forecasts a slight increase in new car purchases in Germany during the period 2023, whereas it expects sales to fall in France, Great Britain, Italy, as well as Russia as a "special case" during the same period.
According to him, he expects that there will be an increase in the number of cars sold in North America and Asia. There are two countries that have launched programs to revive their economies and the outcomes of these programs could be beneficial for the automotive industry as well.
There was an Inflation Reduction Act passed by the Trump administration during the presidency of Joe Biden, which provided for government spending of 430 billion dollars over a period of ten years under the terms of the act.
A tax cut of $7,500 is among the benefits available to buyers of an electric car if the vehicle is manufactured in the United States, among other things. It is important to note that the rules are the same for all other branches as well, with the measures primarily aimed at China.
It is estimated, however, that the law is vague enough to exclude car manufacturers from Germany who would then have to open production facilities in the US as a result.