Tech

Nissan, Hyundai Tap Rental Sales As Answer To Declining Auto Market

By James Yu , Nov 05, 2016 12:42 PM EDT
Close

Recently, a significant decline in the auto market has been seen. The percentage drop for the sales in the previous month shows that the demands are no longer as high as they used to be. However, two of the biggest Asian carmakers based in America, Nissan and Hyundai seem to have found a way to keep their sales up.

The Decline In Auto Market And Those Affected

The decline of the demands in the auto market has made a significant impact for more than just a few of the known automakers in America. This decline is being seen as an ease from a great market to good. In a report from Bloomberg, an analyst for Cox Automotive's Autotrader said in an interview that the auto market is still "pretty good" but car sales are getting tougher in which investments should be made into ways of pushing it. The report also showed data on the previous month's actual sales versus projections where General Motors, Ford, Fiat Chrysler and several others have been shown as among those affected by the auto market decline.

Nissan and Hyundai's Moves To Keep Sales Up

Apparently, Nissan and Hyundai have found that the rental car agencies are a good place to sell their cars. Forbes reported that nearly 270,000 Hyundai and Kia vehicles this year have been made part of rental fleets while Nissan added 65,000 more of its vehicles in rental fleets. These accounts to 27 percent and 39 percent increase for both company's rental sales inventory.

The Bloomberg report's data confirm that Hyundai has gained 1.3 percent sales increase instead of the projected decrease of 4.8 percent. It was stated in the same report that rental lots are commonly used by car makers as a place to dump vehicles they can't sell. Apparently, Hyundai and Nissan have made good use of this resource to keep their sales up during the decline in the auto market.

© 2019 ITECHPOST, All rights reserved. Do not reproduce without permission.
Real Time Analytics