The automotive industry is estimated to be worth around two trillion dollars. While the market is constantly changing, it was also greatly affected by the coronavirus pandemic. Perhaps irreversibly.
Many people fled from the cities to the suburbs. People were afraid to take public transportation and instead opted for big trucks and electric cars. They also opted to buy a lot of their cars over the internet instead of actually going to the dealership.
If you are at all involved in the automotive industry, it is important that you understand how the industry is going to evolve. So keep on reading and we will take you through the top automotive industry trends that you need to know about!
The Electric Revolution
Climate change has become the focus of various political and automotive campaigns. While electric and hybrid cars have been gaining steam over the past several decades, things are really expected to ramp up in the near future.
Just look at the Super Bowl for an indication of this. One of the most talked-about and rewatched commercials was one from General Motors features comedian Will Ferrell. In the ad, Ferrell complains that Norway is outshining the United States in electric vehicle adoption and he promises to change that.
Also, with the rise of ESG (environmental, social, governmental) investing, it is clear that car companies are going all-in on electric. Both old and new car manufacturers will likely come out with electric cars in 2021.
From sports cars to SUVs, you can expect to see electric vehicles like:
- Mercedes-Benz EQC
- Nissan Ariya
- Polestar 2 (Volvo)
- Lucid Air
- GMC Hummer EV SUT
- Mustang Mach-E
- BMW iX3
- Audi e-Tron GT
While these cars probably won’t overtake Tesla anytime soon, they are certainly going to provide some tense competition.
Digital Experience
As we already mentioned, Covid-19 greatly affected the auto industry when it comes to purchasing cars. Consumers, in general, were moving more and more to buying items online instead of in-person.
Car companies are recognizing these changes and are starting to act.
Online sales tools are going to get better and become much more involved in the purchasing process. The tools are going to adapt and notice gaps in the current shopping experience.
Companies like Carvana, TrueCar, and CarMax have also become more popular and are leading the way in touchless car purchasing.
Autonomous and Self-Driving Autos
What once seemed like a far-off futuristic fantasy is now becoming more and more of a reality. Of course, car manufacturers are prioritizing environmentally-friendly products over these kinds of features, but they are certainly going to fund advancements in this field.
In fact, it’s not even the main car manufacturers that are going to putting that much focus on self-driving cars. Instead, that will mainly be taken up by tech companies, such as Microsoft, Apple, Google, and Uber. Be ready to see these companies pair up with various car companies as they work to advance this incredible technology.
There is also going to be a lot of legislation as well as criticism around the technology, considering how dangerous something like this could be if things go awry.
You are also probably going to see new designs for self-driving cars. Get ready to hear more and more rumors about self-driving cars and what fantastic things they will be able to do, whether or not those rumors are actually telling the truth.
Connectivity
Aside from going all-in on electric vehicles, car manufacturers will also put a lot of attention on connecting cars. They want to provide a better experience for drivers who are demanding that everything is connected better.
These days, cars are expected to be filled with connected tech. That means Bluetooth capabilities, charging outlets, Apple CarPlay and Android Auto, and even WiFi hot spots. People also want their cars to have backup cameras, navigation services, and great sound systems.
Basically, a car is going to become its own entertainment system with speakers, screens, and other fun features. At one point, cars were just about getting you from Point A to Point B. And people mainly worried about whose car was faster, more powerful, or louder.
Now, it’s about so much more than actual driving.
Subscription Services
These days, it’s all about the subscription model. Nobody wants to own anything anymore. They would rather subscribe and have the option to opt out when they’re no longer satisfied.
This also allows the company to continually make money, instead of only making money once at the point of sale.
Recently, Porsche expanded its subscription operations in North America and this trend will probably continue.
Car companies are going to let customers swap cars that they’re no longer interested in. They will likely cover both premium and more affordable options for different consumers, allowing them to cover larger parts of the market too.
Car Insurance Will Also Upgrade
Car insurance is expected to become more digital and more customizable. These features were certainly pulled forward by the pandemic and likely only going to become more prominent.
It’s important that you do your research and find the best coverage for you.
The Importance of Knowing About the Automotive Industry in 2021
Hopefully, after reading the above article, you now have a better understanding of what the automotive industry is like in 2021. As we can see, there are some major advancements going on that are worth knowing about so that you can better prepare for the future.
Make sure to check out the rest of our site for more helpful articles!
The automotive industry is estimated to be worth around two trillion dollars. While the market is constantly changing, it was also greatly affected by the coronavirus pandemic. Perhaps irreversibly.
Many people fled from the cities to the suburbs. People were afraid to take public transportation and instead opted for big trucks and electric cars. They also opted to buy a lot of their cars over the internet instead of actually going to the dealership.
If you are at all involved in the automotive industry, it is important that you understand how the industry is going to evolve. So keep on reading and we will take you through the top automotive industry trends that you need to know about!
The Electric Revolution
Climate change has become the focus of various political and automotive campaigns. While electric and hybrid cars have been gaining steam over the past several decades, things are really expected to ramp up in the near future.
Just look at the Super Bowl for an indication of this. One of the most talked-about and rewatched commercials was one from General Motors features comedian Will Ferrell. In the ad, Ferrell complains that Norway is outshining the United States in electric vehicle adoption and he promises to change that.
Also, with the rise of ESG (environmental, social, governmental) investing, it is clear that car companies are going all-in on electric. Both old and new car manufacturers will likely come out with electric cars in 2021.
From sports cars to SUVs, you can expect to see electric vehicles like:
- Mercedes-Benz EQC
- Nissan Ariya
- Polestar 2 (Volvo)
- Lucid Air
- GMC Hummer EV SUT
- Mustang Mach-E
- BMW iX3
- Audi e-Tron GT
While these cars probably won’t overtake Tesla anytime soon, they are certainly going to provide some tense competition.
Digital Experience
As we already mentioned, Covid-19 greatly affected the auto industry when it comes to purchasing cars. Consumers, in general, were moving more and more to buying items online instead of in-person.
Car companies are recognizing these changes and are starting to act.
Online sales tools are going to get better and become much more involved in the purchasing process. The tools are going to adapt and notice gaps in the current shopping experience.
Companies like Carvana, TrueCar, and CarMax have also become more popular and are leading the way in touchless car purchasing.
Autonomous and Self-Driving Autos
What once seemed like a far-off futuristic fantasy is now becoming more and more of a reality. Of course, car manufacturers are prioritizing environmentally-friendly products over these kinds of features, but they are certainly going to fund advancements in this field.
In fact, it’s not even the main car manufacturers that are going to putting that much focus on self-driving cars. Instead, that will mainly be taken up by tech companies, such as Microsoft, Apple, Google, and Uber. Be ready to see these companies pair up with various car companies as they work to advance this incredible technology.
There is also going to be a lot of legislation as well as criticism around the technology, considering how dangerous something like this could be if things go awry.
You are also probably going to see new designs for self-driving cars. Get ready to hear more and more rumors about self-driving cars and what fantastic things they will be able to do, whether or not those rumors are actually telling the truth.
Connectivity
Aside from going all-in on electric vehicles, car manufacturers will also put a lot of attention on connecting cars. They want to provide a better experience for drivers who are demanding that everything is connected better.
These days, cars are expected to be filled with connected tech. That means Bluetooth capabilities, charging outlets, Apple CarPlay and Android Auto, and even WiFi hot spots. People also want their cars to have backup cameras, navigation services, and great sound systems.
Basically, a car is going to become its own entertainment system with speakers, screens, and other fun features. At one point, cars were just about getting you from Point A to Point B. And people mainly worried about whose car was faster, more powerful, or louder.
Now, it’s about so much more than actual driving.
Subscription Services
These days, it’s all about the subscription model. Nobody wants to own anything anymore. They would rather subscribe and have the option to opt out when they’re no longer satisfied.
This also allows the company to continually make money, instead of only making money once at the point of sale.
Recently, Porsche expanded its subscription operations in North America and this trend will probably continue.
Car companies are going to let customers swap cars that they’re no longer interested in. They will likely cover both premium and more affordable options for different consumers, allowing them to cover larger parts of the market too.
Car Insurance Will Also Upgrade
Car insurance is expected to become more digital and more customizable. These features were certainly pulled forward by the pandemic and likely only going to become more prominent.
It’s important that you do your research and find the best coverage for you.
The Importance of Knowing About the Automotive Industry in 2021
Hopefully, after reading the above article, you now have a better understanding of what the automotive industry is like in 2021. As we can see, there are some major advancements going on that are worth knowing about so that you can better prepare for the future.
Make sure to check out the rest of our site for more helpful articles!
Make sure to check out the rest of our site for more helpful articles!