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Bunuel
12 Days of Christmas 2024 - 2025 Competition with $40,000 of Prizes

Production of hybrid cars has seen significant growth over the last year. To capitalize on this trend, AutoMart plans to increase the production of its hybrid model while also enhancing its marketing efforts for this vehicle.

Which of the following, if true, provides the most support for the view that AutoMart cannot increase its sales of hybrid cars by adopting the plan outlined above?

(A) AutoMart has sold every hybrid car it has produced, but its market share in the hybrid car segment has decreased over the last year.
(B) The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year.
(C) AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer.
(D) Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year.
(E) AutoMart’s hybrid model is one of three brands that have accounted for the majority of the increase in hybrid car sales over the last year.

 


This question was provided by GMAT Club
for the 12 Days of Christmas Competition

Win $40,000 in prizes: Courses, Tests & more

 

provides the most support for the view that AutoMart cannot increase its sales of (Weaking)

Yeah on a large trend EV is raising, But what about the company.. ???

(A) AutoMart has sold every hybrid car it has produced, but its market share in the hybrid car segment has decreased over the last year. Strenghten
(B) The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year. Slightly, Strenghten but mostly Irr
(C) AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer. Irr
(D) Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year. Weaken, No interest in the company cars, So If production increases still no impact.
(E) AutoMart’s hybrid model is one of three brands that have accounted for the majority of the increase in hybrid car sales over the last year. Strenghten

IMO D
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In the prompt, we read the following:
Production grew => AutoMart should increase production and enhance marketing => Increased profits

The question essentially looks for a weakener- which will come if we can find evidence that further production growth following previous surge is not necessarily the best option for making a profit.

A] shows that current production volume is not higher than demand, but potentially could be as other players grow.
- Along the right lines, but insufficient.

B] illustrates that some backlog was sold out.
- Irrelevant.

C] draws a difference between success of marketing aspects.
- Irrelevant.

D] flags that sales are declining even with the current production and at lower prices - which means producing even more cars can only exacerbate the issue.
- This is the weakener.

E] states that Automart is among Top 3 sellers, but without any other insight.
- Insufficient.

Hence, the answer is D.
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I guess the answer is C.
Although they are widely marketed but very few customers know that they are the manufacturers.
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Production of hybrid cars has seen significant growth over the last year. To capitalize on this trend, AutoMart plans to increase the production of its hybrid model while also enhancing its marketing efforts for this vehicle.

Which of the following, if true, provides the most support for the view that AutoMart cannot increase its sales of hybrid cars by adopting the plan outlined above?

(A) AutoMart has sold every hybrid car it has produced, but its market share in the hybrid car segment has decreased over the last year.

It may well be the case that marketing efforts were missing and less number of cards were produced. So, if (A) is true, it does not support the view that AutoMart cannot increase its sales of hybrid cars

(B) The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year.

It may be the case that AutoMart hybrid cards are too quick to be shipped that the inventory built up has decreased. This doesnt support the conclusion.

(C) AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer.

It doesnt matter whether the customers know who is the manufacturer, this knowledge does not affect the argument that AutoMart cant increase the sales.

(D) Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year.

Now, if (D) is true, it may be the case that there is something inherently flawed with the car, that even with the price decrease, sales have been declining. Let's keep this option open and check the next option.

(E) AutoMart’s hybrid model is one of three brands that have accounted for the majority of the increase in hybrid car sales over the last year.

This option does not seem to tell us anything or support the case for Automart cannot increase its sales.


Hence, (D) is the most appropriate option and casts most doubt on the expected outcome of the plan.


Bunuel
12 Days of Christmas 2024 - 2025 Competition with $40,000 of Prizes

Production of hybrid cars has seen significant growth over the last year. To capitalize on this trend, AutoMart plans to increase the production of its hybrid model while also enhancing its marketing efforts for this vehicle.

Which of the following, if true, provides the most support for the view that AutoMart cannot increase its sales of hybrid cars by adopting the plan outlined above?

(A) AutoMart has sold every hybrid car it has produced, but its market share in the hybrid car segment has decreased over the last year.
(B) The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year.
(C) AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer.
(D) Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year.
(E) AutoMart’s hybrid model is one of three brands that have accounted for the majority of the increase in hybrid car sales over the last year.

 


This question was provided by GMAT Club
for the 12 Days of Christmas Competition

Win $40,000 in prizes: Courses, Tests & more

 

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(A):"AutoMart has sold every hybrid car it has produced, but its market share in the hybrid car segment has decreased over the last year."
Losing market share suggests that increasing production might lead to oversupply and enhancing marketing might not be enough. Therefore, this statement supports the view that increasing production and marketing may not necessarily lead to more sales.

(B):"The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year."
a slight decrease in inventory does not provide direct evidence about sales performance or market conditions.

(C):"AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer."
As there is no brand recognition, enhancing marketing efforts may not lead to increased sales. This suggests that improving brand recognition might be a more critical area for AutoMart than simply increasing production. Therefore, this supports the idea that marketing alone may not be enough to increase sales.

(D):"Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year."
This directly supports the idea that increasing production and enhancing marketing efforts may not be sufficient to increase sales, as there seems to be an underlying issue causing the decline in sales inspite of decrease in price.


(E):"AutoMart’s hybrid model is one of three brands that have accounted for the majority of the increase in hybrid car sales over the last year."
it does not directly address the question of whether increasing production and marketing efforts will lead to further growth.


Ans
The most compelling support for the view that AutoMart cannot increase its sales by adopting the plan outlined above comes from Option (D).
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(A) Company is losing market share becuase it can’t produce enough cars, strengthens the plan - Incorrect

(B) Indicates that increasing production could be beneficial - Incorrect

(C) Could be used to improve sales - Incorrect

(D) Provides support that company may not be able to increase its sales - Correct

(E) Brand is popular, indicating that increased production and marketing will help - Incorrect
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Quote:
Production of hybrid cars has seen significant growth over the last year. To capitalize on this trend, AutoMart plans to increase the production of its hybrid model while also enhancing its marketing efforts for this vehicle.

Which of the following, if true, provides the most support for the view that AutoMart cannot increase its sales of hybrid cars by adopting the plan outlined above?

(A) AutoMart has sold every hybrid car it has produced, but its market share in the hybrid car segment has decreased over the last year.
(B) The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year.
(C) AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer.
(D) Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year.
(E) AutoMart’s hybrid model is one of three brands that have accounted for the majority of the increase in hybrid car sales over the last year.

Premise: Hybrid car production has seen significant growth over the last year.
Premise: AutoMart plans to increase production of its hybrid model, as well as marketing efforts for the vehicle, in order to capitalize on the growth trend.

We’re looking to support the view that AutoMart’s plan won’t increase its hybrid sales.

A. This makes the plan look viable. If they’ve sold every car they produced, then increased production will likely lead to increased sales.
B. This also supports AutoMart’s plan by showing that production isn’t keeping up with demand.
C. Irrelevant. Consumers don’t have to know who the manufacturer is to buy a product.
D. As prices decrease, demand should increase. As this didn’t happen for AutoMart, it could indicate that there’s some other issue keeping people from buying their hybrid, so it makes the plan’s success look less likely.
E. This supports the plan, if anything. People are apparently buying the hybrid model AutoMart manufactures, so making more and marketing more would likely help them capitalize on the growth.

Best answer is D.
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