After 10 years of continuous growth, world auto production saw a significant decline in 2019, with global production decreasing more than 5% for the year. The decline in automobile production continued well into 2020 as manufacturing shutdowns due to the overall economic crisis that began in March that year.
The semiconductor shortage is playing a huge role in delay of delivery. The geopolitical tension between Ukraine and Russia further added obstacles and created a disruption on the supply chain.
The Original Equipment Manufacturers (OEM) have been forced to update themselves from time to time due to the consumers preference which has changed drastically over a decade and leaning towards technological shifts.
The digital transformation is bringing new startups and other technological sector companies into the market which is an added competition to the existing auto mobile manufactures. The customers prefer personalization and are becoming more environmental conscious. Keeping all these into consideration, the OEM’s are further enhancing their products.
What are the future trends that can be seen in automobile industry?
The manufactures are going to enhance more and more on software features with AI (artificial intelligence) and Machine learning for connectivity. A connected car refers to a vehicle that connects to the internet and shares internet access with different devices. These include both devices outside the vehicle, and inside the vehicle. Due to this, vehicles will have more advanced features from emergency braking to entertainment functions and cyber security protection.
Vegan friendly cars are becoming more popular. According to Car Magazine, some of the best vegan friendly cars include the Tesla Model S, the Range Rover Velar and the Ford Mustang Mach-e. These vehicles include seats that are made from recycled materials, instead of the traditional leather interiors. A growing number of consumers are looking for ethical and green options when purchasing their vehicles.
Globally, momentum is building to increase the adoption of Electric vehicles (EVs). Fueled by a host of issues ranging from climate change to air pollution and crude oil prices, several countries have announced ambitious targets to phase out fossil fuel-powered vehicles.
Global electric vehicle sales reached 6.75mn in 2021, an all-time high, with an increase of 108% compared to the previous year, according to an Anadolu Agency (AA) report.
In 2022, the semiconductor shortage and demand prompted a massive increase in investment by automotive chip manufacturers, giving investor’s confidence that more supply will come online in the coming years.
CrispIdea expect the global light vehicles production to be around 81mn units by 2022 and expect it to increase to ~88mn units by 2023.
For details on Regional analysis and Business trends please feel free to refer to the following Automobile Industry report from CrispIdea: