It is interesting to know the average age of cars in the world and compare them with India to understand its causes.
In Delhi, the average age of diesel cars is limited to 10 years, while in the United States it is 12 years. Now it is necessary to understand that only in Delhi diesel cars will not be allowed after 10 years. The law is not the same in the rest of the country. The Delhi government did this to control the level of pollution in the capital. There are various factors that determine the average life of a vehicle and we will now consider them.
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The average age of cars in Delhi and the United States
The automotive industry has suffered a lot in the last two years. The pandemic has completely stopped car production. Demand, like supply, fell sharply. In addition, in the United States, as well as in India, people’s preferences for buying a new car have changed. When demand finally recovered, the automotive industry suffocated after supply chain problems and a shortage of semiconductor chips. The automotive industry is not the first consumer of semiconductors, so there is still a shortage. Some estimates suggest that this may continue until 2023.
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This is because semiconductors are aimed at the electronic gadget industry. There was a need to increase the number of smartphones and laptops for people who work from home and stay at home. Therefore, the current supply is directed to the left, and the automotive industry should be in the back. People are still recovering financially from the pandemic, which is delaying their decision to invest in cars. However, in the last two years, the old automotive industry has experienced a breakthrough due to the need for personal mobility.
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These are some of the macro factors that regulate the global automotive industry today. The trend allows us to know where the market is headed and we can prepare well for this scenario. People decide to leave their old cars or buy old ones.