There are several factors that affect and influence demand, supply and prices in the automobile industry. The newly released Chevrolet Hybrid Vehicles from GM Motors automobile company are therefore affected by existing factors in the market. One of the factors affecting demand and supply of cars in the market includes the cost and availability of motor finance. Credit or financing options have a direct effect on the demand for cars in the market. Most car buyers depend on securing a finance agreement and paying in installments when acquiring a car. According to statistics, eighty-five percent of new car sales are auto financed.
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Vehicles are relatively affordable despite the increasing cost of cars in the market. GM Motors, therefore, expects an increase in demand for the newly released vehicles. An increase in demand for the cars will consequently necessitate the increase in supply to meet the needs of the market.
Blenkhorn, D. L., & Fleisher, C. S. (2005). Competitive Intelligence and Global Business. Westport, CT: Praeger.