The auto industry is experiencing transformation at a rapid pace. Technology and industrial disruptions are reshaping the industry almost every day. As we move closer to the future, our lifestyles and needs change. Consumers now want more innovative driving solutions.
So, automakers must find a balance between pleasing consumers and making profits, they shouldn’t just focus on sales. Here are the top trends that will completely transform the automotive industry.
- Shared Mobility
When two or more people share a vehicle, there are fewer vehicles on the road. And when there are fewer vehicles on the road, carbon dioxide emissions go down, which is good for the environment. Shared mobility companies such as Bolt are providing economic benefits in the form of cost savings. They improve access to cars by creating opportunities for new trips that aren’t possible via public transportation. People can now share vehicles and save.
As this trend becomes more popular, it will reduce the number of cars on the roads, significantly easing traffic congestion. The Covid-19 pandemic slowed down shared mobility adoption, but the economical and environment-friendly model will ultimately make a comeback after the crisis.
- Digital Marketing and Car-Buying
Coronavirus pushed the auto industry to the digital landscape after a long time of stagnation. Online car buying and at-home car delivery became a reality. But some people haven’t gotten used to online car buying, so it may take time to become mainstream.
Statistics show that the larger population is still not comfortable buying a car online, especially a used car. However, marketing experts are working hard to create a seamless digital shopping experience that will drive up trust levels. This includes smooth payment methods and detailed showroom virtual tours.
- Shorter Model Lifecycles
In previous years, car manufacturers would release new car models 5-10 years after the original model was manufactured. This has changed. Dealerships are now stocking newer car models manufactured 1-2 years after the original models. Pacific Auto Center says that automakers have to produce new cars more quickly to keep up with changing consumer demands.
The focus has shifted from profits to the consumer. Automakers have adopted a customer-centric approach that addresses consumers' specific needs. They are always testing new car features that enhance the driving and in-car experience, which is why they release newer models after shorter durations.
- Increased Connectivity
The market value of connected cars is expected to reach $215 billion by 2027. Increased connectivity will improve and speed up many processes. Connected cars are less harmful to the environment and are safer for road users. Increased connectivity will also offer more revenue streams to companies related to the auto industry.
Insurance companies will be able to access car information--such as mileage and driver behavior--virtually. Predictive maintenance and remote diagnostics will reduce visits to auto shops, saving car owners time.
There are a lot of developments to look forward to in the auto industry. New trends will completely change how cars are built and used.