Is the automotive tool industry expecting price increases this year 2023. Big Changes coming from the automotive industry.
Suppliers of automotive tooling will benefit from the growth in the global automotive market
The global automotive diagnostic tools market is expected to grow on account of increasing automobile production and usage across the globe. Rising demand for vehicles due to rapid urbanization favoring personal mobility is likely to drive the demand for vehicle diagnostic solutions.
Despite slower vehicle demand in North America, record revenue per vehicle will drive die growth. Higher returns are funding investment in new vehicle technology, with the number of vehicle nameplates expected to increase from 210 in 2023 to 249 in 2029, an 18% increase.
Prices for the tool industry suppliers are expected to increase by 28% this year and by an average of 32% every year through 2023
However, this comes at a cost – major manufacturers have already begun raising prices in the tool industry as well as; on their new models, most likely as a result of increased manufacturing costs and inflation. So, for better or for worse, price increases are passed on directly to consumers.
Those increases resulted in an average monthly payment of $785 for a new car and a $661 increase in lease costs, Cox said. The average new sticker price is still above $27,000, compared with an average new transaction price of about $49,500 last year.
Indicators of automotive industry outlook for 2023
While West Michigan auto parts suppliers and suppliers in the tool industry may hope to finally emerge from the “dark winter” of the past three years, the outlook for auto production in 2023 points to further challenges, although some bright spots are beginning to emerge in the medium-term outlook.
ATLANTA, December 19, 2022 – With New Years only a few weeks away, the team at Cox Automotive Industry Insights presents their outlook for the U.S. auto market in 2023. 2022 will be a tough year for them on almost every front, both industrial and consumer, with historically low inventories of new vehicles, high prices and persistent inflation eating into monthly budgets. A relatively strong job market has provided a tailwind, but at the same time, a restrictive Federal Reserve has pushed up interest rates, essentially putting the brakes on the auto industry as it struggles to gain momentum.
Sources
1.https://www.yahoo.com/now/automotive-diagnostic-tool-market-rech-023000562.html
3.https://superdispatch.com/blog/the-auto-industry-top-5-trends-to-watch-for-in-2023/
4.https://www.cnbc.com/2023/01/15/ten-auto-industry-predictions-2023.html
6.https://www.coxautoinc.com/news/2023-cox-automotive-predictions/
