Suhail, Yourprimecar
The Covid-19 pandemic transformed the automotive sector in both positive and negative ways. This has resulted in changed consumer behaviours and new strategies from automakers revolving around maximum customer satisfaction, reducing overheads and improving sales. Undoubtedly, 2022 has been a rough year for carmakers as they were threatened by the semiconductor chip shortage, increased production costs due to supply chain issues, slow global demand and so much more. As an automotive enthusiast, you definitely would want to know what will happen in 2023.
Well, here is what we think will be the top 10 automotive trends of 2023.
Top 10 Automotive Trends 2023:
Availability Of More Brand-New Models
While manufacturers still could not resolve the chip shortage issue entirely, we are seeing brand-new models in the market, easing pressure on the dealerships. The showrooms now look to improve their inventory levels so customers do not have to wait for deliveries.
The increased inventory is also beneficial for the dealerships, which had tough two years after the pandemic. On the other hand, consumers should be ready to pay more for new car models, as automakers have increased vehicle prices due to rising costs and inflation.
New Ways of Car Purchase
When Tesla started to sell directly to consumers, most of us did not like the idea for various reasons. However, many automakers like Ford, Volkswagen, and Toyota are now considering selling like Tesla to minimise their marketing expenses and avoid haggling. In this strategy, the auto dealerships will merely act as mentors to educate the customers about different models and their characteristics. (read our latest on Tesla .
Rising Popularity of Electric Vehicles
EV sales are gradually increasing every year, with 2022 witnessing the biggest rise. We can partly attribute this higher acceptance of EVs to the increasing fuel prices, high cost of internal combustion engine vehicles, and scarcity of brand-new vehicles overall.
Moreover, zero-emission cars have now become more affordable, and consumers have more choices. Besides, countries and citizens are now taking global warming more seriously. Europe has taken a tough stance against it and set a date to ban the sale of combustion-powered cars. Whether consumers like it or not, they have no choice but to accept EVs for their future mobility.
Enhanced Used Car Sales
Used car sales continued to increase for a long time after the government relaxed Covid-19 restrictions. The main reasons were less availability of brand-new vehicles, the low buying power of consumers, and high new car values. Considering the rising concerns of recession and inflation, we assume the continuation of this trend in 2023.
Increasing Adoption of ADAS
The self-driving or autonomous cars have been in the news for many years, with Tesla and other automakers promising to bring Level 4 autonomy. While that is still a far-off dream for many, Tesla is still pursuing it. On the other hand, Ford has abandoned its plan to create a full Level 4 self-driving tech.
Whatever happens to Full Autonomy, the Level 2 and Level 3 autonomous vehicles are currently in use and are more feasible for users, automakers, as well as for governments to allow them on public roads. More and more vehicles now come with ADAS (Advanced Driver Assistance Systems), aiding drivers in driving safely and preventing road accidents and deaths. An ADAS suite mainly includes pedestrian detection/avoidance, lane departure warning/correction, traffic sign recognition, automatic emergency braking, blind spot detection, and more for driver’s assistance.
The technology will only improve in 2023 and be adopted more by the automakers as a standard safety suite for their vehicles.
Cars Will Be Out Of Reach For Many
Since cars are an expensive commodity, the recent recession has thrown many consumers out of the market. Various aspects like the rising prices of new and secondhand vehicles, increasing petrol prices, high APR, and more of the culprits. It will not get better in 2023 as inflation swells and interest rates rise.
On the other hand, consumers’ low buying power will boost alternative vehicle ownership models. An increasing number of people will use ride-sharing and car-sharing services to reach their destinations, thus, applications like Uber, Lyft, and ZipCar will become more famous in the future.
Rising Online Car Sales
Another gift of the Covid-19 pandemic, online car sales are only going to rise in 2023 and beyond. Apart from auto manufacturers, different dealerships and car auction platforms have started taking advantage of online car sales. It has given consumers the convenience of accessing a huge selection of cars online while allowing showrooms, car-selling platforms, and auction houses to expand their consumer base.
With an internet-enabled connected device, car shoppers can now even compare different car models online and perform a 3D inspection of their chosen car. Some dealerships even provide free shipping on online car sales to beat their competition.
Car Makers To Join Hands with Tech Companies
Cars are becoming more complex each year as manufacturers need more chips, sensors, AI-based software, and sophisticated hardware to make their machines safer, more intelligent, comfortable, and convenient.
Automotive manufactures can either create the software and hardware themselves, which would require huge investments, or shake hands with tech firms for innovative technologies. The carmakers and tech firms’ partnership can bring software upgrades, progress on ADAS, and advanced entertainment features.
Higher Adoption of Fuel Cell Technology
The fuel-cell electric vehicles (FCVs) will become more prevalent next year due to various environmental and practical concerns. FCVs can help governments cut their dependence on oil as well as save the environment from greenhouse gases.
Some critics believe hydrogen production (depending on the selected technology) can still harm the environment. However, this amount of greenhouse gases is still meagre compared to what ICE (Internal Combustion Engine) vehicles emit.
FCVs also have an advantage over battery-powered cars – they deliver more range (5 times compared to electric cars) and recharge faster.
More Connected Cars
More vehicles are likely to support internet connectivity, making them safer, more comfortable and convenient in automotive industry. A connected car has its own internet connection so that it can share and receive data from devices inside and outside the vehicle. Today, connected cars can give you real-time traffic updates, remote starting, locking, parking, call emergency services in case of an accident and so much more.
