The automotive industry has had a tumultuous few years due to the COVID-19 pandemic, the semiconductor chip shortage, and other factors. However, the industry is beginning to recover and it is expected to continue to do so in the coming year. Here are the five biggest trends to watch for in the automotive industry in 2023, according to reports by Equal Ocean (2022) and Super Dispatch (2023):
1. Increased inventory of new models:
The chip shortage has caused significant supply chain issues, leading to shortages in many industries, including the automotive industry. However, car manufacturers have begun to release new models, which has helped to improve inventory levels. This increase in inventory will likely continue into 2023, but it may come at a cost as manufacturers are raising the prices of their new models due to rising manufacturing costs and inflation.
2. Continued growth of electric vehicles (EVs):
EVs have seen a surge in popularity in recent years, with sales hitting an all-time high in 2022. This trend is expected to continue as more EV models become available and fuel costs and the cost of gas-powered cars continue to rise. However, the current lithium ion battery shortage may pose challenges for manufacturers looking to increase production.
3.Increased use of autonomous vehicles:
Autonomous vehicle technology, mostly seen in brands like Tesla, is not going away and is expected to become even more popular in 2023 as more brands launch self-driving cars with improved technology. Autonomous vehicles are also expected to start appearing in auto transportation, such as with the launch of Tesla’s Semi.
4.Fewer consumers able to afford cars:
The current recession has led to more consumers being priced out of the car market due to rising prices for both new and used cars, higher gas prices, increased APR, and other factors. This trend is expected to continue in 2023 as inflation worsens and interest rates continue to rise. However, alternative car ownership models, such as ride-sharing and car-sharing, have become more popular and may become the primary mode of transportation for those priced out of the market.
5.Increased online car sales:
More dealerships and auto auctions are beginning to offer their inventory online, which has given consumers access to a larger selection of vehicles and has made the purchasing process more convenient. This trend is expected to continue in 2023 as more consumers turn to online shopping due to the COVID-19.
Equal Ocean. (2022). The Auto Industry in Turmoil. Retrieved from https://equalocean.com/analysis/2022122019299
Super Dispatch. (2023). The Auto Industry: Top 5 Trends to Watch for in 2023. Retrieved from https://superdispatch.com/blog/the-auto-industry-top-5-trends-to-watch-for-in-2023