For two years in a row, in 2018 and 2019, the automobile sector struggled with declining economic activity, growing competition, a downturn in BRIC markets, and tightened lending standards, all of which affected global demand. Then followed the knockout blow of COVID-19 lockdowns in the first half of 2020, plummeting car sales to record lows. However, the car sector is returning at a quicker than predicted rate, owing primarily to the consumer move toward personal mobility over public and shared transportation. In fact, Frost & Sullivan’s mobility team has already reduced its 2020 light vehicle sales prediction from 73.6 million to 77 million, representing a 15.1 percent year-on-year fall. More encouragingly, we forecast a robust 8% year-on-year increase in sales in 2021, with the sector on course to surpass 2019 levels by the end of 2023.
In terms of how key markets are recovering from the pandemic’s after effects, China’s automobile sector has been the fastest to recover, followed by the US, which began to recover around Q3 2020. Despite the pandemic’s lingering consequences, Europe and India have also shown signs of a steady, if gradual, recovery. Given the protracted lockdowns in Q1 and the latter’s poor economic development, we had higher hopes for India in 2021 than for Europe.
Top 10 Trends for 2021
So, as 2021 began on a positive note, here are the top global automotive trends that are believed to energize the automobile sector in the upcoming months:
- Forget A Showroom Visit, Just Crank Up Your Computer
Automotive digital retail has been one of the year’s biggest acts. While internet retail has already made major advances into the more structured car markets of North America and Western Europe, the epidemic has pushed it into overdrive and will continue to do so. The epidemic has educated customers on how quick, convenient, and easy it is to buy anything online, including large-ticket things such as autos. The extra benefit, of course, is that online marketplaces, which are not burdened by the cost overheads associated with physical showrooms, offer incredibly cheap rates. Finding an auto spa car wash online has never been easier than this. I believe manufacturers have turned to novel marketing methods, such as employing social media influencers, to increase test drives or, as seen in China, allow bookings on third-party e-commerce platforms. Technology enablers are the greatest story in enabling the automotive industry to sell and communicate with customers digitally.
- Innovative Subscription-based Vehicle Usership Models
Consumers will benefit from very flexible contract periods, car commitments that may be as short as a Tinder date, and quick vehicle shifting, but expensive subscription prices will be a detriment. To be successful with car subscriptions, automakers will need to develop a business model that not only meets the luxury demands of the market but also offers economical, price-sensitive models that are easily accessible to the general market. Another thing to think about is to include young used automobiles at an accessible price range, guaranteeing a fleet mix of new and used cars that caters to both sides of the client spectrum. Leasing will be a simple and straightforward way for lease providers to monetize their enormous portfolio of used automobile assets, particularly off-lease cars.
- With New In Trouble, Used is the new Good
New vehicle sales may be in jeopardy, but I see a rise in used car sales in 2021. Growth will be aided by the increased popularity of online used vehicle sales, which we predict will expand at a compound annual growth rate of 9% between 2019 and 2025. The market for secondhand electric and hybrid vehicles is also likely to grow. Facing problems with your secondhand Maruti car? Search for” Maruti authorized service center near me” and get the best service by K.P automotives in Jaipur.
