Raw material prices have dropped many car prices or benefit

Posted on 2/2/2015 3:07:31 PM

Due to the recent global average price of steel and rubber and other raw materials fell, industry analysts believe that the car will therefore reduce the cost of production, Toyota and Nissan and other car firms will benefit.
Recently, a seven auto industry analyst in an interview said that the current car prices in revenues when their estimates did not factor in the global prices fall fully into account.
Frank Schwope German Norddeutsche Landesbank analyst said falling steel and other raw material prices will bring more than 500 million US dollars in fiscal year 2014 net income growth of Toyota. "This is a great advantage, the current price has not stabilized, so the future as well as greater profit margins."
According to Bloomberg calculations based on the average global price, cold-rolled steel prices fell 13 percent in the last year, rubber prices fell by 11%, CLSA analyst Christopher Richter said the next fiscal year, Nissan vehicle raw material prices will fall by 11% to US $ 1,444.
Because car prices and raw material suppliers to contract every six months to re-sign once, so you can achieve the long-term effects, analysts believe that the next fiscal year beginning in April of this year, car prices will continue to be from lower prices benefits.
In addition, oil prices fell into six-year low also contributed greatly to the new car demand, various factors, it is possible to lower car prices, car prices, in order to further promote sales growth.

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