What does 2013 Hold for the Car Industry?

For most sectors, 2013 could present many of the same challenges faced in the past few years. Low consumer demand, rising raw material costs and a need to tap into emerging markets are all essential for the motoring industry.

Year of the electric car?

This year promises to be a big one for the electric car market.

Over the past few years, take-up of cars which run on electricity has slowly grown while the range of electric vehicles has expanded significantly. The 2012 Paris Motor Show showcased a number of green cars which are expected to hit showrooms across the world this year.

At the moment, sales of electric cars aren’t too impressive. General Motors’ North American chief Mark Reuss admitted it, but said he wasn’t willing to give up on their production in an interview online. Other manufacturers are likely to focus on electric models, especially with the cost of regular fuel and diesel continuing to skyrocket.

Fuel economy first

Aside from electric cars, smaller models are among those expected to sell more, especially in western countries where the grip of austerity remains tight. Superminis, city cars and even some of the cheaper hatchbacks on the market today are likely to be more popular, for reasons such as insurance and fuel costs.

Fuel economy is something more and more motorists worldwide will be worrying about. Getting the most from their cars is an absolute must for many hard-pressed drivers; so if they need to buy new, they’re more than likely to go for a smaller model which needs less to run on than a saloon, sports car or estate model.

The smaller, the better

Smaller models tend to come with smaller price tags, another reason why they may be more attractive to buyers looking to scrape together enough funds for a deposit. This could see many manufacturers focus much of their resources on such cars.

The 2012 Paris Motor Show saw new models such as the latest updates to the Ford Fiesta and Volkswagen Golf shown in front of an expectant audience according to this article on the VCARS website. It’s no certainty that they will be successful, but stand a better chance than some of the more prestige releases over the coming months.