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Which areas of growth does the Automotive industry anticipate for 2021?

The Automotive industry is looking forward to a busy and productive 2021. With changes to trading regulations and new rules on fuel consumption, how will the future of car production be impacted?
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Like most of the world, cars are becoming software orientated and are capable of so many more things than they were before

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6 April 2021

AFTER an uncertain 2020, the Automotive industry is looking forward to a busy and productive 2021. With changes to trading regulations and new rules on fuel consumption, how will the future of car production be impacted? Here are some of the suggested plans and expectations for automotive manufacturing and sales for the year ahead.

Digitalisation and modernising

Like most of the world, cars are becoming software orientated and are capable of so many more things than they were before. Cars have been fitted with parking sensors, satellite navigations and hands-free phone technology to name but a few over the past 10 years. There are even vehicles that can park and drive themselves now with the help of artificial intelligence, which has been truly revolutionary for the automotive industry.

This increase in digitalisation and modern technology is only set to continue. Businesses will have to adapt to this if they are to stay relevant and compete within the market. Consultant experts RSM suggest that “Suppliers will need to begin scenario planning with the help of data analytics and develop new business models.” if they are to stay ahead of the game.

A change in brand loyalty

As with any major product, there are bound to be new versions and models available on the market. The automotive industry is no exception.

With thousands of different car manufacturers and models available throughout the globe, the market becomes saturated, and customers are provided with much more choice when buying a car. This means that they may decide to opt for a newer, cheaper model from a different manufacturer rather than sticking with their tried and trusted brand. This will provide newer brands the chance to shine through and show what they are capable of within the market.

A shift in workplace

During the pandemic, many companies have decided to operate from home as a way to manage safety, comply with regulations and cut back on the costs of running office spaces when only a select few people would be able to attend.

This means that many more people have been working from home and have proven that they can work just as efficiently out of the office as they did at it. This could cause a shift in the amount of people needing their cars for travelling to and from work. As most people won’t have used their car anywhere near as much as they normally would have over the past year, there would have been less chance of them needing to replace their car sooner, and possibly even no need for their car now at all.

Some may have decided to sell their car via local platforms such as Gumtree or Facebook Marketplace, meaning that the trade would have taken place privately rather than from manufacturer to supplier before reaching the next owner.

Emissions and tax

As a bid to decrease the number of emissions, people are looking towards eco friendly cars. Diesel powered cars are becoming less desirable due to the high emissions they produce, and the same is becoming apparent for petrol fuelled cars.

Eco friendly vehicles such as electric cars and hybrids are the way forward as they are kinder to the environment, gentler on fuel consumption and won’t be taxed as high as their predecessors. Especially when visiting big cities and highly populated areas.

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