What lies ahead this 2022 for the automobile industry?
With the past year plagued with skyrocketing car prices, shutdowns of plants, and shortages in chips, what does this year has to offer?
Below are some of the trends that will rule this 2022:
Autonomous Vehicles are Put on Hold
Automakers promised that 2020 will see fully self-driving vehicles. But there are some breakthroughs this 2022. Mercedes-Benz and GM are gearing up to launch their first real hands-free driving technology. Others such as Cruise and Waymo focus on cargo haulers and ride-sharing services.
However, safety probes that involve Tesla’s Autopilot serve as warning about the challenges involved in developing fully autonomous vehicles.
China is Poised for Further Growth
China is the largest auto market in the world but local manufacturers such as Great Wall and Geely are expecting to go beyond the borders. However, there have been continuous delays in their efforts to enter the number 2 international market, which is the United States.
Trade frictions during the administration of Donald Trump are yet to be resolved under Biden. While there are some Chinese-made items available in showrooms in the US, it may take years before China’s real automotive invasion.
EVs are Rising in Fame
EVs make up a modest part of the new vehicle sales in the US but their demand has doubled in the first half of 2021. In 2022, they might reach the tipping point with the explosion of the EV market. Some factors play a role here, such as the selection of new offers. It is anticipated that there will be four times growth in the number of long-range models.
New Cars Come with Higher Prices
Automakers all the world produced around 8 million fewer cars than planned the previous year due to product shortages. While production may rebound, dealers will still fail to establish their inventories this 2022. The result is that buyers should expect limitations in choices with prices continuing to increase at a record rate.
Online Car Purchases Becoming the New Normal
During the lockdown in the US, the industry discovered a new idea. Since customers couldn’t visit dealers, dealers used the internet to go to them instead.
Even when the country opened up once again, there are still customers that shop for cars online, with most retailers scheduling test drives and delivering new vehicles to the homes or offices of buyers.
Also, with the almost bare showroom lots, many motorists that are driven by impulse have started to order their vehicles and wait for the delivery that sometimes takes months.
Ongoing Shortages of Products
When the world was hit by COVID-19, automakers slashed orders for parts and productions. However, once the sales began to rebound, they learned that they can’t get their hands on the required semiconductors that leads to major cuts in production.
The industry lost revenues of up to $210 billion in 2021. While there is now an increase in chic supplies, they are far from being back to normal and it will continue even in 2022. The industry also faces other types of shortages that affect products such as tires and interior seat foams and plastics.