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Future of automotive industry: What lies ahead

The automotive industry is constantly evolving and driving us into an exciting future that holds innovations and transformations. Moreover, as we look back into 2023, several emerging trends redefine how to interact with vehicles. In this blog, we will explore diverse facets of the automotive trends. It includes supply-chain shortages, the continual rise of electric cars, the present condition of the UK economy, prices of synthetic oils, and increased growth of aftermarket products. Let’s dive into the in-depth analysis of these facets. 

Advancement in technology: Innovation of electric vehicles:

Advancements in technology has given rise to a significant innovation: electric vehicles (EVs). These vehicles are revolutionizing the way we think about transportation. Moreover, they’re not only environmentally friendly but also cost-effective to operate. As we look to the future, the trend toward EVs is set to grow. Manufacturers continually improve battery technology, increase driving ranges, and expand the charging infrastructure. 

However, consumers need effective cleaning tools to maintain their EVs. Here, car washers can prove beneficial for them. They can maintain your electric vehicles spotless to work efficiently. Additionally,

  • EV sales are expected to grow by approximately 48% in 2022, reaching 9.4 million units globally.
  • Projections for 2023 suggest a return to pre-pandemic levels with a growth of about 9% in sales.
  • EVs and hybrids are anticipated to increase by 29% in 2023, totaling around 12.1 million units globally.
  • EVs might see more than 50% growth, aiming for around 2.8 million sales, making up 22% of the market.
  • China’s sales might remain flat for much of 2023, expected to reach over 26 million vehicles.
  • EV segment might have a 20% growth with around 6.2 million sales, forming 23% of the market.

Uncertainty about COVID-19 outbreaks and shutdown strategies in China could significantly impact sales. However, consumers demand remains strong and we can expect an increase in sales of electric vehicles globally in 2024.

The evolution of advanced driver assistance system:

The innovation of the Advanced Driver Assistance System (ADAS) has been remarkable. It started with essential features like cruise control, which maintained a constant speed. Over time, ADAS has become more sophisticated. Today, it includes technologies such as lane-keeping assistance, adaptive cruise control, and collision avoidance systems.

Additionally, these systems use sensors and cameras to monitor the vehicle’s surroundings and assist the driver in real time. The future looks even more promising with ongoing developments in autonomous driving. As technology advances, ADAS will continue to improve road safety. It can reduce accidents and enhance the overall driving experience

Blockchain innovations for secure data storage:

Blockchain is one of the significant trends to watch for beyond 2023. In the automotive sector, a wide array of data is generated and processed daily. It includes vehicle performance metrics and maintenance records to ownership and warranty information. Utilizing blockchain for secure data storage can benefit both manufacturers and car owners.

For manufacturers, blockchain ensures the integrity and immutability of data related to a vehicle’s production and maintenance history. Additionally, this  record can help maintain the vehicle’s value and enable transparent tracking of its lifecycle. In recalls or safety concerns, manufacturers can efficiently identify affected vehicles and communicate with the owner.

Supply chain shortage: Impact on global trade

The automobile industry is not an exception to the significant influence of the global supply chain shortfall over many sectors. Future automobile trends must consider the powerful effects of this shortfall on international trade. The manufacturing and supply of vital automotive parts have been disrupted. It causes delays and higher expenses for automakers. 

Additionally, this results in a limited supply of automobiles and, occasionally, increased customer pricing. Moreover, these supply chain issues necessitate creative solutions as the automotive industry moves toward an electric and autonomous future. They do so to facilitate a smooth transition and stay updated with changing industry trends.

Challenges and prospects: the UK Economy and the risk of recession

The UK economy’s health is directly linked to the automobile industry, which plays a crucial role. The sector is impacted by the possibility of a recession, which might impact manufacturing, innovation, and consumer spending. But these difficulties also present chances for change. The automotive industry’s shift towards electric vehicles, autonomy, and sustainability practices allows the UK to become the leader in upcoming automotive trends. A bright future for the automotive industry depends on its capacity to effectively and adaptably navigate these economic challenges.

Furthermore, fluctuations in exchange rates can also exert an influence on the automotive industry’s dynamics. If the pound’s value weakens compared to other currencies, this leads to higher expenses for UK car manufacturers when importing the necessary parts and materials. Elevated manufacturing costs, in turn, result in higher retail prices for consumers. On the other hand, if the pound strengthens against other currencies, UK car manufacturers benefit from reduced import costs for components. It can subsequently lead to more affordable pricing for consumers.

Enhanced digital advertising:

The world of digital marketing had a massive rise in 2022, with spending topping $17 billion, and it is stated that this trend will continue to pick up steam in 2023. The rising social media platform interaction rates are increasing digital advertising spending. In the future, dealerships must plan and take advantage of this trend by focusing on potential clients at different points in the car-buying process.

Dealerships must aggressively use social media marketing and messaging tools to interact with and convince potential customers in the online world to adapt to the changing automobile market.

Growing collaboration of tech giants with automobile companies:

This transformative partnership propels the industry into an era of innovation and connectivity. Tech companies like Apple, Google, and Tesla play pivotal roles in developing autonomous vehicles, electric cars, and advanced infotainment systems. Moreover, these collaborations are driving advancements in vehicle performance and safety and redefining the customer experience.

 As the lines between technology and automotive continue to blur, we can anticipate a more seamless integration of cutting-edge technology, AI-driven features, and enhanced connectivity. These promise to revolutionize how we perceive and interact with vehicles shortly.

 Consistent expansion in the automotive aftermarket:

Consistent consumer interest and evolving vehicle ownership patterns contribute to the robust and steady rise in aftermarket sales. Manufacturers and suppliers are actively responding to this trend, further fueling the market’s expansion with innovative solutions and enhanced product offerings. Additionally,

  • Europe’s average car lifespan has increased to 12 years, up from 7.4 years in 2014.
  • North America also saw a rise in average car age, from 11.4 years in 2014 to 12.2 years in 2022.
  • Over 750 million passenger cars in operation across the two continents are contributing to this shift in consumer behavior.
  •  Increased demand for tires, spare parts, and car chemicals is a direct result of this trend.
  • The global automotive aftermarket witnessed a 3% growth, totaling $64 billion in 2022.
  • Growth was observed across all categories and regions except for China and Developed Asia.
  • Tires, constituting nearly three-quarters of aftermarket sales value, experienced a 2% increase.
  • Spare parts sales saw a notable 6% rise, while car chemicals exhibited a robust 8% growth in 2022.
  • In 2022, light truck tires showed significant growth, increasing by 5% compared to 2021 and marking a substantial 22% rise from 2019. This increase was mainly due to higher demand for logistics and last-mile delivery services.

However, it’s important to note that this growth is mostly driven by the U.S. market, where larger vehicles are more common, contributing significantly to the increased demand for these tires.

Trends in small sized and synthetic engine oils:

After oil prices went up due to Russia’s actions in Ukraine, the prices for engine oils stopped rising by the end of the year. But it’s uncertain if the prices will stay high because the market is very unpredictable. Additionally,

  • Global engine oil sales grew by 6.6% in 2022, driven by price increases.
  • Unit growth was 2.2% but slightly weaker than pre-pandemic levels.
  • Sales value increased by 13% compared to 2019, with the most significant rise in Europe and Emerging Asia.
  • Fully synthetic oils constituted 54% of the market, showing a rising trend for higher-performing, pricier oils.

Bottommost thought: 

The automotive industry is set to undergo significant changes in the coming years. We’ll see more electric cars on the road, making transportation greener and reducing pollution. Self-driving cars are becoming a reality, promising safer and more convenient journeys. Cars will also be more connected, with advanced tech like smart navigation and entertainment systems. Additionally, these changes aim to make our lives easier and more enjoyable. They also come with challenges, like ensuring these technologies are safe and accessible to everyone.

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