Low Fuel Prices Are Helping Global Car Manufacturers

Major car manufacturers never had it this good with the high demand for cars. Massive profits have been reported for the first quarter of 2016 from the likes of Ford, Honda, Ferrari and Renault. Ferrari, the Italian car maker is selling cars like hotcakes particularly with the introduction of Ferrari 488 GTB and Spider. Experts suggest that cheap gasoline prices are pushing the demand upwards.

The United States is one of the key markets for global car manufacturers making it the best place to closely determine the sudden rise in demand. According to a recent CNN report, Americans now demand for the gas guzzling SUVs and pickups since the latter part of 2015 because the prices of fuel are at a record low. According to figures provided by sales tracker AutoData, sales of cars with low fuel efficiency have increased by 10% while sales of Toyota Prius hybrid car and Chevrolet’s Volt plug-in electric car went down by 12% and 23% respectively.

It is surprising because for the very first time in four years, sales of pickup trucks have overtaken the sales of electric cars. The report is clearly a sign that most car buyers are no longer too concerned with their carbon footprints and climate change when looking for a car to drive. Just look at Ferrari that reported a 19% increase in net profit for the first quarter of 2016. The biggest markets of Ferrari include Europe, China and the Middle East but surprisingly Africa has also made considerable contributions.

April is looking good for car manufacturers so that new models are being introduced to the market. While fluctuation in fuel prices is an important factor in car sales trends, dealer discounts, advertising, cost and overall appeal of a car can affect sales figures. Based on the study made by Fuel Institute, consumers choose smaller and fuel efficient cars when fuel prices are quite high and larger cars when fuel prices are quite low.

However, no matter the Ferrari 488 price, car enthusiasts have always been interested with the high performance car. Aside from its sculpted design, the distinctive sound of the Ferrari has always attracted the attention of car buyers.

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