Some fascinating automotive industry trends are now influencing the world. The emerging automotive trends will undoubtedly have a significant impact on the upcoming ones.
These trends are causing notable changes in consumer habits. For example, today, there are statistics that you must find out more about if you wish to buy a vehicle. These trends are diversified, involving how vehicles are:
- Shopped for, and many more.
Indeed, the past few years have brought about tremendous changes in the automobile industry. With electrified, autonomous, and connected cars, it’s evident that we’re in for even more exciting trends in the coming days.
There are notable trends that should not bypass you. It helps to stay tuned and discover where we’re headed to. For instance, did you know that by 2026, India is projected to be the world’s 3rd largest automotive market by volume?
Currently, its value is $118 billion. The Indian auto industry continues to beat all odds by showing tremendous resilience despite the challenges presented by the Covid-19 worldwide pandemic.
Below, we’ll discover the exciting upcoming trends in the automobile industry that you need to know about. But, first, let’s find out how the world automotive market is changing.
How is The World Automotive Market Transforming?
The global automobile market continues to change. The future vehicle will be electrified, autonomous, shared, connected, and updated yearly. This stands for “eascy” in short.
According to a report by PWC, eascy implies that:
- Electric vehicles will release lesser exhaust fumes and noise into the environment.
- Autonomous vehicles will take up less space and personal time.
- The vehicles will be more accessible since users won’t need a driving license to use them.
- The vehicles will be more affordable; thus, more people will own cars. This is because people will not have to buy vehicles outright. Instead, they can pay for them in small amounts per use via the ‘per use’ basis. Again, journeys can happen through car-sharing Apps.
- Vehicles will stay connected to the transport infrastructure and other cars. For example, they’ll remain connected to traffic light updates to offer real-time congestion. The in-car connectivity will allow the use of internet and multimedia access. Such will boost car sharing or autonomous driving
- There will be yearly vehicle updates purposely to: Incorporate the latest hardware and software developments and to continue reducing the traditional automobile services
Let’s now discover more about the anticipated upcoming trends in the automobile industry.
What Are the Exciting Upcoming Trends in the Automobile Industry?
- Increase in Digital Automobile Sales
Automakers and dealers in regions like Europe and North America now offer their consumers real-time purchase alternatives. For instance, let’s say you want to visit the famous Toyota in Raynham car dealership and select a preferred 2022 latest vehicle brand.
In this case, you don’t have to go there physically. Instead, you can pick and purchase the vehicle you want online. So, you can find your desired choice from different 2022 selections like:
- 2022 Toyota Corolla Cross
- 2022 Toyota Tundra (Colors vary)
- 2022 Toyota Tundra Double Cab
- Used Toyota SUVs
With your smartphone, tablet, or computer, you can select and buy online at your convenience. For example, when it comes to the Toyota corolla models, you have the freedom to explore and choose what you prefer. So, you can look for particular features like those models offering safer trips in corolla cross cars.
One exciting automobile purchase trend is that; dealerships are working hard to incorporate modern online sales technology. An example includes a case where the online buyer uses virtual walk-around technology. This technology facilitates incredible factors like the at-home test drives, followed by home delivery of the particular vehicle you select and buy.
Indeed, more dealerships are looking to do so in 2022 and beyond. It’s said that virtual viewings will also benefit automobile dealers by reducing wasted viewings.
Below are some exciting and promising virtual tour statistics:
- Virtual tours entice customers aged 18 to 34 years since they are more likely to 130% book the tour.
- Half of all adults on the internet depend on virtual tours for their daily product and service research.
- Customers will spend 5 to 10 times more on websites with virtual tours.
- 67% of consumers now want more businesses to offer them virtual tours.
- Worldwide virtual tours record more than 5 million visits every day
- Virtual tours boost a business rating’s interest two-fold.
- High Production of Electric Cars with Digital Technology
Indeed, it’s clear that vehicles produced from now onwards will be full of diverse technology addressing digital touchpoints. Automobile companies continue to integrate new digital technologies into their cars. According to statistics, 52% of all the new vehicles sold will be wholly electrified by 2030.
Indeed, developers are busy generating digital and electronic operating systems and software. They aim to power and control the newly-innovated zero-emission electric vehicles. These new automobiles will contain exciting digital technology features.
The most significant difference between electric and conventional vehicles is regenerative braking. Unlike the internal combustion technology that applies combustion and pressure to move the vehicle, electric vehicles (EVs) are steered by electromagnetism. The electricity used by vehicles is stored in a battery, which supplies electric motor power.
Regenerative braking implies that the electric motor operates in reverse. It applies a braking force via electromagnetism. So, different electric vehicle models will have individual driving modes, including distinct levels of regenerative braking.
- Increase in Sales of Pre-Owned Vehicles
There is a tremendous ongoing increase in the sales of used cars. The demand is high and rising, especially for vehicles not older than four years. People are now going for these types of vehicles since:
- They come with the latest automotive technologies
- They’re not as costly as new vehicles.
- Low APR financing
- Guarantee of certified pre-owned vehicle
But, this does not imply that vehicles older than four years are a wrong purchase or aren’t being sold out. The automobile industry players are doing all they can to add value to consumers by improving their experience and making it a hassle-free process.
There’s an increase in sales for both the pre-owned electric and hybrid brands. In 2019, the global used cars market value was $828.24 billion. It’s still projected to attain $1,355.15 billion by 2027. This will register a CAGR of 8.3% between 2020 to 2027.
The most exciting part is that; dealerships now have certified pre-owned auto inventories like the used Toyota SUVs that look, feel, and operate like new cars but cost less. Low Annual Percentage Rate (APR) financing also boosts the attractiveness of pre-owned vehicles.
Why Did Covid Period Improve the Sales of Pre-owned Vehicles?
People who were comfortable with public transport systems before the pandemic was highly reserved post-pandemic. Most commuters were overcome with fear regarding public buses, metros, and local trains. This made people consider personal vehicles for everyday travel.
More so, many people are still sensitive about high auto costs in the recession. As a result, such groups are inclined more toward pre-owned cars purchase. Besides, the lockdown period led to delayed market delivery of new vehicles. Thus, lots of global consumers increased confidence in pre-owned cars.
But, even before the pandemic, the BS-VI had set the pace to enhance pre-owned vehicles. This trend aims to reduce environmental pollution. This move steered highly-advanced and technologically-resilient vehicles. The increasing prices of new cars promoted the pre-owned cars’ value proposition, making it stronger amongst buyers.
The current trend shows that first-time buyers also have great interest in this segment. This is even as banks tighten the financing options for new vehicles. It’s one primary reason why consumer preference for used cars is rising, paving the way for constant growth of the sector.
With the fast rate at which we are experiencing technological advancements, it’s clear that we are in for more exciting days. It’s not surprising to see many people converting to electric cars in the next few years.
Automakers and technology companies forming partnerships will fasten the process. IoT and machine learning advancements power the speed of implementing electric and driverless cars.
Indeed, electric, connected, and autonomous vehicles need specialized software and advanced technology to operate safely and appropriately.
So, based on the trends we’ve discussed, now, going forward, you might see increased automobile manufacturers and technology company partnerships. As a result, this partnership will be a game-changer in the automobile industry.
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