“Peak Car” point to occur within the next decade, analysts say

Article by Anita Panait, on March 3, 2014

Analysts say that worldwide vehicle sales would likely reach its highest point in the next decade to he so-called “Peak Car,” and start to decline thereafter. Following a century of global growth, the auto industry may face a decline as early as next decade, with indications already present.

In megacities, pollution and heavy traffic are discouraging some to drive. In India, some people are leaving their vehicles at home and instead commute to work. In the US, younger Americans prefer public transport, bicycles and vehicle-sharing. Likewise, cars have become more durable.  IHS Automotive expects annual sales to peak at 100 million within the next decades.

Peak Car runs counter to the grand expansion plans of global carmakers, which IHS says are readying to build more than 120 million vehicles by 2016 – which is around 50 percent higher than the sales mark of 82 million in 2013.

The dynamic also serves as a threat to business plans of parts producers, raw material suppliers and oil companies.

The reality is that the vehicle is becoming less significant in the world of personal mobility, especially as more and more people move to cities. While analysts are expecting less people to buy cars for their personal mobility in the decades, they do not forecast that vehicles would become an extinct commodity. [source: automotive news - sub. required]

If you liked the article, share on:

Pin It

Comments

Recommended

The German automaker Volkswagen is now racing against time to come up with electric vehicles that will be able to pass Europe and China's stringent emission standard. The car company...
by - March 22, 2017
In the last few years, the advent of compact sedans and crossovers has become quite overwhelming. Even two of the major manufacturers that “started it all” have to admit that...
by - March 22, 2017
By 2020, Audi will be throwing out not just one but three fully-electric vehicles. One of which will be pitted against the BMW i8. This new information was revealed by...
by - March 22, 2017
Tesla confirms that they will be discontinuing the fairly new Model S 60 and 60D sedans as soon as next month. Why, you ask? The company wants to make enough...
by - March 22, 2017
Have you ever wondered how much luxury car companies profit from every vehicle they sell? And which companies profit more? Well, in 2016, Porsche sold over 238,000 vehicles. That is...
by - March 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries