The global auto industry is worth about $3 trillion US dollars. There are a number of auto trends that we have posted stories on in the past like autonomous vehicles, the growth of electric vehicles (EV’s) and the chip shortages and supply chain issues being faced by most car manufacturers.
But we are reading that there are a number of other trends that will shape the industry in 2023 and beyond, especially around the growth of the Electric Vehicle.
So here are a few likely changes we have looked at that may impact you and the auto industry.
Buying From a Dealership/Car Dealer
This experience looks like changing significantly, as manufacturers like Ford, VW, GM, BMW and Toyota are all looking to follow the Tesla model of selling direct to consumers. Tesla has no marketing budget, no price haggling and doesn’t have huge car yards with massive lease or ownership costs.
The new model for dealerships will be more like an agent, collecting a commission on vehicles sold but not necessarily owning the stock. A dealership will become a place to learn about the characteristics of different models or to ask questions about owning and operating the electric vehicle.
EV Workshops and Repairers
There will be a need to re-think the workshop and maintenance approach when it comes to electric vehicles. EV’s require less mechanical maintenance as the battery and motor have far less moving parts than conventional ICE (internal combustion engine) vehicles.
There are fewer fluids to fuel and lubricate those moving parts and there is less brake wear due to regenerative braking technologies. All this means that EV owners should expect to have to spend less time going to workshops and carrying out routine maintenance. Workshops will need to re-train their technicians for electric vehicle maintenance and will have to develop robust supply chains for spare and replacement parts.
Battery Integrity Technology
The battery will become one of the defining factors in how well an EV holds its value in the used car market. For example, replacing a battery for the most common EV like the Nissan Leaf can cost anywhere between $8,000 to $15,000 depending on the model.
So drivers will need convenient and easy ways to interpret data analysis to help them take care of their batteries and used-car buyers will see battery health statistics as a critical part of each car’s condition report.
Auto Manufacturers Upskill to Software Engineers
Cars already have millions of lines of code powering driver assistance, safety features, entertainment systems, and GPS systems. With more semi self-driving vehicles expected to hit the roads over the next few years, your car has essentially become a super computer on wheels.
Auto manufacturers have recognised this and are starting work to try to compete with traditional tech companies and hiring software engineers.
Physical Inspections are Becoming Digital
Physical inspections to assess a vehicle’s condition like a lease termination will no longer be required. Digital technologies such as AI and computer vision are allowing non-professionals to conduct the vehicle inspection to be guided and checked by AI. This will make inspections more objective, faster and cheaper.
Keep an eye out for some of the less visible automotive industry trends. In the next few years the automotive industry is set to change more than it’s changed in the past 100 years.
December 2022
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