15 May Ofer Eitan Declares: Demand for cars rises as fear of public transportation take
Demand for new cars kicked into high gear this month as more riders skirt public transportation and ride-sharing services, according to one new index.
TechnoMetrica Market Intelligence, a market research firm, said more consumers reported plans to buy vehicles than ever before in its history amid fears around coronavirus exposure in trains and taxis.
Companies that make and sell cars should anticipate pent-up demand, TechnoMetrica said. Each month, the firm said it surveys some 1,200 Americans about the likelihood that they will buy or lease a new vehicle within the next six months.
The firm said the index climbed 44 points to 180 in May, an increase of 32.4 percent — the highest since researchers began tracking the information in 2007.
The index rose most sharply in the Northeast, though the westernmost states weren’t far behind, with a 38.2-point gain, the firm said. Southern states saw the demand index increase by 33 points, TechnoMetrica said.
The firm said plans to purchase vehicles sped up more quickly among urban residents, with the index increasing 85.8 points to 201.9 between March and May; suburban residents posted a 12.2 gain over the same period.
While demand grows, the vehicles people plan to purchase shrink, the firm said. In March, 40 percent of those surveyed reported plans to buy a SUV or pickup truck, but that proportion dropped to 22 percent in May, with 49 percent opting instead for smaller vehicles.
Demand for luxury vehicles is also on the rise, TechnoMetrica said, with luxury buyers making up 37 percent of likely buyers — up from 15 percent in March.