The pandemic caused global supply chain issues after countries closed their borders to stem the spread of the virus. Manufacturing also saw disruptions after the authorities implemented restrictions to reduce infections among workers. Additionally, sales plunged after people opted to postpone plans for buying vehicles in response to restrictions imposed by the government.
After the situation improved, the industry started recovering and returning to normalcy. The government has taken several steps, such as providing subsidies and tax incentives, to encourage sales of new vehicles that meet emission standards.
The auto industry is constantly changing, so there are always new predictions about what the industry will look like in the future. Here are some of the most popular predictions for 2023:
Rise of Electric Vehicles
Many experts believe that electric vehicles are becoming increasingly popular, with several major automakers planning to launch new models of electric vehicles in the coming years. These electric vehicles are also expected to become even more affordable as prices continue to fall. The growing demand for digital technology in all industries will drive this trend. As such, many experts predict that electric vehicles will make up a significant portion of new car sales by 2023.
Sales of electric vehicles reached 608,000 in 2021 from 308,000 in 2020. In 2021, electric vehicles accounted for 73 percent of plug-in electric vehicle sales. Even though overall auto sales increased by only three percent over the same period, sales growth in the PHEV (plug-in hybrid electric vehicle) segment nearly doubled at 85 percent.
Overall, it seems clear that the rise of electric vehicles is here to stay. Automakers are racing to keep up with this shifting trend as they integrate more digital technologies into their vehicles to meet the growing consumer demand for these new technologies more digital technologies into their vehicles to meet the growing consumer demand for these new technologies in the industry and automotive e-commerce sites. Whether you are an avid driver looking for the latest electric vehicle models or an automotive manufacturer seeking new ways to keep up with changing consumer preferences, the future of electric vehicles is certainly exciting and full of potential.
Increasing Sales of Aftermarket Accessories
According to the Joint Channel Forecast Model, automotive aftermarket sales will also increase by 8.5 percent by the end of 2022. The market will also see a five percent growth in 2023 and another three percent growth in 2024. In 2025, the light-duty aftermarket is expected to reach $401.5 billion.
The automotive aftermarket is an important sector of the economy, and sales will continue to grow in the coming years. Factors such as increased demand for new vehicles and rising consumer spending are driving this growth, along with broader economic factors such as rising incomes and low unemployment. As a result, businesses in this sector can expect to see continued growth in the years ahead.
The market includes a wide range of products and services, including aftermarket parts and repair services and accessories such as wheels, tires, and seat covers. Truck owners can also find durable truck bed rack accessories to allow them to get the most out of their vehicles.
Companies that provide these products and services must adapt quickly to changing trends and new technologies to succeed in the market.
More Autonomous Vehicles on the Road
Industry watchers also expect more autonomous vehicles to hit the road in 2023. The increasing number of autonomous vehicles is due to the continued growth of self-driving cars from major tech companies and automakers, as well as increasing demand from consumers looking for safer, more efficient, and less fatiguing transportation options.
Autonomous vehicles offer several key benefits over traditional cars. They are significantly safer, reducing driver error-related accidents. They also reduce downtime and fuel consumption, as well as CO2 emissions. By improving fuel efficiency by 10 percent and reducing CO2 emissions, autonomous vehicles can help deal with the growing threat of climate change.
As more companies invest in self-driving technology, the market can expect these vehicles to become more mainstream in the next few years. Whether you are a commuter looking for a more convenient and efficient way to get around or want to help combat climate change by reducing emissions, autonomous vehicles will likely become an essential part of the transportation landscape soon.
More Connectivity in Vehicles
The automotive industry is quickly adapting to the increasing demand for vehicle connectivity. This demand is evident in the number of new models released with features like Android Auto and CarPlay, allowing drivers to connect their smartphones to their cars and use apps on the car’s screen.
In addition, many automakers are developing their proprietary systems for connecting cars to the internet. Ford, for example, has developed the SmartLink system that allows cars to connect to the infrastructure around them. This system includes traffic monitoring, hazard reporting, and even vehicle-to-vehicle communication.
The trend towards increased connectivity in vehicles is sure to continue in the coming years. As more and more people become accustomed to using apps and services while driving, automakers will be increasingly pressured to develop new ways to keep drivers connected.
The automotive aftermarket is seeing continued growth in the coming years due to increased demand for new vehicles and rising consumer spending. Despite the slowdown at the start of the pandemic, businesses in this sector can expect to see continued growth in the years ahead.
