We are pleased to welcome a guest blog from a fan of THE Blog About Cars today:
After all the economic doom and gloom of 2008 and 2009, any positive news about the economy is welcome. Many analysts believe that looking at market trends for major purchases is a key indicator for economic health, as consumers are extremely wary of making significant financial commitments during times of uncertainty. Thus, it’s not a stretch to make extrapolations about the state of the economy in general by looking at global market trends in the automotive industry.
After the first quarter of 2010, industry analysts were thrilled by the news that the global car market had surged 25 percent in year-over-year sales. Particularly encouraging was the fact that nations with emerging economies led the charge with gains of more than 40 percent–staggering numbers on the heels of one of the worst economic crises of the past 100 years. The so-called BRIC nations (Brazil, Russia, India and China) posted the strongest gains.
On the North American side of things, market analysts have noted that sales volumes are increasing at a faster rate now than they ever have since the emergence of 0 percent financing around the turn of the century. What’s more is that increasing numbers of North American consumers are choosing higher-end, more expensive vehicle models such as those offered by Bentley, instead of economical alternatives. Overall sales of small cars and economy models are down significantly, both in the United States and Canada. While this may be unwelcome news from an environmental or ecological perspective, it is encouraging from an economic point of view.
While there’s still a lot of uncertainty circling around the future of the automotive industry, solid numbers like these should certainly allay fears that the global vehicle market is headed for a major meltdown. Consumer demand for cars is certainly growing, and people the world over are backing it up by putting their money on the table.
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