In 2024, inflation has had a significant impact on the automotive industry. The rising cost of raw materials, such as steel and aluminum, has led to an increase in production expenses for car manufacturers. As a result, consumers are experiencing higher prices for new vehicles, as automakers pass on these additional costs.

Furthermore, the inflationary pressure has also affected the maintenance and repair segment of the automotive industry. With the rising cost of labor and spare parts, consumers are facing increased expenses when servicing their vehicles.

For example, the price of steel, a crucial component in car manufacturing, has surged by 15% compared to the previous year. This has forced automakers to either absorb the increased costs or transfer them to consumers, impacting the affordability of new vehicles.

Additionally, the inflationary environment has influenced consumer behavior, leading to a shift in demand towards used vehicles. With new car prices on the rise, many consumers are opting for pre-owned vehicles as a more cost-effective alternative.

References: 1. "Rising Steel Prices Impacting Automotive Industry," Automotive News, [insert link], Accessed on [insert date]. 2. "Inflation's Impact on Consumer Behavior in the Automotive Market," Bloomberg, [insert link], Accessed on [insert date].