Peaks and Troughs: A Forecast for the Car Industry in 2023.

The University of Law.

Melissa Croxford.

The recent economic instability that has plagued the world has produced some interesting
developments in the car industry as some companies have experienced booms and others
have fallen flat. With the environment becoming increasingly part of the automobile
agenda, this falls against the backdrop of a decline in consumer spending on cars as the
threat of recession lingers.

Consumer Decline 
With consumers across the globe looking to cut costs as the world hurtles towards a
recession, the car industry is one industry that has been particularly impacted. Typically,
the purchase of cars is a sign of luxury and has been a status symbol for wealth and
prosperity. Therefore, as the economy is in decline, possession of cars is increasingly
becoming a commodity for the very wealthy as everyone else suffers under cost-of-living
pressures. At the end of the last calendar year, Rolls Royce Motor Cars had a very
successful year as its luxury add-ons for the car attracted its ultra-rich clientele. This year
also saw the company’s bringing the average age of their buyers down to 43, showing
that even when the market is suffering, they still managed to extend their consumers. The
success of Rolls Royce Motor Company seems to be an enigma within the car industry
simply because of the stability of their wealthy clients, whereas other companies suffered
more.  
Recently, Tesla announced global cuts of their prices by 20% for some of their ranges.
Furthermore, the price of used Tesla vehicles fell by £5,000 in 3 months in the UK,
following their cuts to their new Model 3 range. Elon Musk has justified Tesla falling
short of its 2022 growth target by suggesting that recent cuts have led to an increase in
sales.