Current trends in the car market

Question 1

Price factors

Answer 1

1. Component costs
2. Labour costs
3. Brand power
4. Features/USPs

Question 2

Micro transactions

Answer 2

Add on features for a car
Changing the settings in exchange for money to be paid to the car company
Similar to complimentary goods
Eg: Mercedes

Question 3

Leasing

Answer 3

“renting” a car
Pay a monthly fee to use the car
Once the car stops being paid for, you lose access to the car

Question 4

Gaining finance

Answer 4

Borrowing money to pay over a period of time

Question 5

Consumer trends

Answer 5

2017-2020 sales dropped due to Brexit
=Exchange rate impact

2020-2022 sales dropped due to COVID

If there is uncertainty within the economy, consumers postpone spending

Question 6

Top 5 best selling cars in 2023 (UK)

Answer 6

1. Ford Puma
2. Vauxhall Corsa
3. Nissan Qashqai
4. Nissan Duke
5. Hyundai Tucson

Question 7

What are the 3 main types of cars consumers are buying?

Answer 7

-Saloon
-Hatchback
-SUV

Question 8

How are consumer tastes changing ?

Answer 8

Saloons used to be the most popular
Now people are switching to SUVs and hatchbacks which shows consumer changes in taste

Question 9

Colour trends

Answer 9

Grey: 25.7%
Black: 20.1%
White: 16.7%
Blue: 16%
Red: 8.5%
Silver: 6.1%, down 11.7%
Green: 1.9%, increased by 74.2%

Question 10

What does the colour green increasing in popularity potentially mean?

Answer 10

More unpopular colours are increasing in percentage perhaps due to the aesthetics (design mix)
May be more popular to have a “different” coloured car

Question 11

Environmental concerns (PESTLE)

Answer 11

Transport accounts for 25% of global emissions

Question 12

2 types of electrical vehicles

Answer 12

1. Hybrid
2. Pure electric

Question 13

Limitation of electric vehicles

Answer 13

-Electric cars potential create more emissions than petroleum cars to manufacture

Question 14

Political factors (PESTLE)

Answer 14

Government want to ban the sale of petrol and diesel cars by 2023

= EV sales over tool diesel sales in 2022
EV sales then also over took petrol sales by 2023

Question 15

Factors to consider about EV

Answer 15

COST: More expensive upfront for EV but in the long run, cheaper to run
ETHICS/ENVIRONMENTAL: Growing trend to be more environmentally friendly
INCOME: Changes in consumer income impact purchasing choices. (inelastic product)
INFRASTRUCTURE: Charging point availability
ENERGY PRICES: Impact on charging and running costs