With the increase in the demand for vehicles and a 16.16 million units sale of the same in February 2015, has shown a positive impact on the aluminium-based companies including Alcoa Inc (NYSE:AA). While aluminium is indeed a vital part of vehicles and vice-versa, a shift in the demand or increase in the sales of vehicles is bound to create a positive impact on the entire industry.
Increased vehicle sale
According to the latest trends of vehicle sale in the U.S., it has been found that the auto industry sold 16.16 million units last month, on seasonally adjusted basis. This shows a vital increase in sales figures, as it rose by over 5% in comparison to the previous year’s same month.
The major causes of increase in the sales in automobile industry are increasing confidence of consumers, new models being launched and lower and better rate of interests.
Aluminium Industry and Vehicles go hand in hand
The most important and biggest sector consuming this metal is transportation. The use of aluminium in the vehicles accounts for over one-third consumption in just North America. apart from the basic body structure of the vehicle, the applications of this metal in transportation industry have been increasing. The use has swelled to other spheres, such as, hoods, engines, wheels and heat exchangers.
It has also been observed that the content of aluminium in the vehicles, on an average, has increased continuously, with the latest figure rounded up to approximately 343 pounds.
Alcoa Inc (NYSE:AA) is flourishing with the increase in vehicle sale, because it is the pioneer and a key company supplying major aluminium products (in the form of sheets) to auto industry.
Alcoa benefiting from light-weighting solutions
In the recent past, automobile industry has shown a drift in the demand towards the vehicles being made of aluminium body. This offers light-weight experience to the consumers. A light-weighted vehicle gives better fuel economy, which is indeed better for overall savings of the consumers. Alcoa has been offering light weight solutions to this industry, thus being among the favorites in the niche.