Demand is already strong
The strong demand is due to a combination of factors, according to IHS’ senior principal economist, Charles Chesbrough. He cites low gas prices and favorable auto financing rates, as well as increased consumer confidence.
Reason for optimism already exists, with automakers selling 15.8 percent more new cars and trucks in October when compared with the same month a year ago. The increase is partially attributable to a rise in the number of new cars and trucks being offered, according to IHS. Even more new vehicles are expected to be introduced next year, which is expected to further drive consumer interest and sales.