Pent-up, Incremental and Replacement Demand

In the past we have touched on the demand aspect of the automotive industry. With recent discussions surrounding disruptors and how they may threaten the sector, some have questioned the effects of disruptors on the outlook of sales.

In this month’s Observations we will look at the three concepts that drive sales of new vehicles: Pent-up demand, incremental demand and replacement demand. The main topic of discussion will revolve around these concepts and how the disruptors interact with them in our industry.

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