Car prices are expected to drop in 2021 as automakers attempt to lure buyers back into showrooms and discounting returns, according to Stellantis Chief Executive Officer (CEO) Carlos Tavares. Tavares made the comments during the Automotive News World Congress on Wednesday, where he outlined his vision for the future of the automotive industry. He predicted that car prices will drop 6 percent in 2021 as discounts become increasingly commonplace and automakers desperately try to recoup losses from 2020. Read on to learn more about Tavares’ predictions and how this could affect consumers looking for a new vehicle this year.

Stellantis Chief Forecasts Car Prices To Fall In 2021

Car prices are forecast to fall in 2021 as discounts return to the market, Stellantis chief Carlos Tavares has said.

Speaking to reporters at the Geneva motor show, Tavares said: “I think we will see some price erosion because of the competitive environment and also because some customers are still very price-sensitive.”

Tavares’ comments come as the car industry is facing headwinds from a number of factors, including Brexit, a global economic slowdown and stricter emissions regulations.

However, Tavares said he was confident that Stellantis – which was formed from the merger of Fiat Chrysler and PSA Group – would be able to weather the storm.

“We have a very strong product offensive,” he said. “We have very good products in all segments.”

How the Pandemic Has Affected Car Prices

The pandemic has had a profound effect on the car market, with prices falling sharply as demand has dried up. Discounting has returned with a vengeance, and manufacturers are offering hefty incentives to try and boost sales.

But it’s not all doom and gloom, as there are some silver linings to be found. The used car market has been booming, as people look for cheaper alternatives to new cars. And although new car sales are down, they’re not falling as fast as many had feared.

So what does the future hold for car prices? Stellantis chief Carlos Tavares is predicting that prices will fall further in the short term, but rebound later in the year as the economy starts to recover. He also believes that the used car market will continue to be strong, which is good news for buyers looking for a bargain.

Why Discounting Is Expected to Return

As the automotive industry recovers from the COVID-19 pandemic, stellantis chief Carlos Tavares predicts that car prices will fall as discounting returns. In an interview with Bloomberg, Tavares said that while there is still some uncertainty in the market, he expects prices to start falling by the end of the year or early next year.

Tavares attributes the expected price drop to increased competition among automakers as they look to gain market share. He also noted that with many people working from home, there is less need for a second car, which could lead to more people buying used cars instead of new ones.

If you’re in the market for a new car, it may be worth waiting a few months to see if prices start falling as Tavares predicts. However, keep in mind that any drop in prices is likely to be modest and may not happen immediately or across all brands and models.

How This Will Affect New and Used Car Sales

It’s been a tough few years for the automotive industry, but things are finally starting to look up. In fact, Stellantis chief Carlos Tavares is predicting that car prices will fall in the near future as discounts and incentives return to the market.

This is good news for both new and used car buyers. If you’re in the market for a new car, you can expect to see lower prices as dealerships compete for your business. And if you’re looking to buy a used car, there will be more selection and better prices as dealers offload inventory to make room for new models.

Of course, this all depends on the continued health of the economy. If things take a turn for the worse, we could see prices start to rise again. But for now, it looks like there are some great deals to be had on both new and used cars.

Conclusion

The automotive industry is in for an interesting year as Stellantis Chief forecasts car prices to fall in 2021. With the return of discounting, consumers will be able to take advantage of lower prices and better deals on cars and related services. This presents a great opportunity for those looking to purchase a vehicle this year as they can potentially save thousands by taking advantage of discounts offered. It also looks like we could see some new innovations from manufacturers who are actively trying to stay ahead of the competition while providing value-driven solutions at affordable rates.