5 Trends To Watch Out For In The Automotive Industry In 2022

2021 was a year to remember, from rapidly increasing car prices to shortages of the vital semiconductor chips and empty car dealerships, 2021 was a difficult year for both auto manufactures and the consumers. With the uncontrolled digitisation of the modern world, the automotive industry needs to bring innovative and creative solutions while keeping up with the everchanging trends in 2022.

With many challenges caused by the supply chain disruption, new cybersecurity, the changing in consumers preferences and the need to develop sustainable options, the automotive industry has many obstacles to ensure a profitable business. So, what’s in store for 2022? The chip shortage is still going to have a massive impact on the industry as the manufacturers try and catch up from last year. But there will be a wider option for the consumers when picking an electric vehicle as the world moves in the right direction trying to create a more sustainable and efficient future.

Here are our top five predictions for the automotive industry in 2022:

  

2. Boost in Ecommerce Sales

During the past few years there has been a massive increased in sale on ecommerce websites and the automotive industry is no exception. This is probably due to the COVID-19 pandemic that hit the world in 2020 and has left lasting effects. Not having the ability to go out and shop helped the spike in online sales that has kept rising even when restrictions lifted. Due to this trend, there has been a steady fall in car dealerships across the world, which has been a major source of sale revenue for most manufacturers in the past. The physical presence of the consumer has faded due to innovative features such as virtual tours and test driving at home. With this revelation, more and more dealerships are switching to the digital medium, decreasing the market for conventional car dealerships.

3. Extra Features

A car has become a lot more than just a transportation need, it is now a means of entertainment for the consumer. Thanks to companies like Tesla leading the way, many vehicles now include features like streaming videos, WI-FI access and Bluetooth. Because of this, automotive companies are now adding a wellness and entertainment features to their cars. Some mainstream features are self-driving and collision prediction which are more assessable to the everyday consumer. A few of the advanced features include air purifications, which make the air inside the vehicles far better and cleaner than the external environment. Another extra feature is the emerging massage seats, which not only provide comfort but also luxury to the driver and passengers. To keep up with the needs of the consumer, the automotive industry is constantly thinking and designing new features to improve and impress for their consumer.

4. Ongoing Product Shortage

As COVID-19 hit the world, it had a huge impact on production across all industries and the automotive industry was no exception. Lots of factory’s had to close or slow down the rate of production. But then when the world started back up and production was in full swing, many companies discovered they couldn’t get all the semiconductors they needed, leading to major production cuts. While chip supplies are starting to loosen up, they are a long way off from being normal and the cuts in production will hurt well into 2022. But the chip shortage isn’t the only problem the industry faces, with shortages affecting products like seat foams and interior plastics, the pace of the automotive industry is unknown.

5. Increase in Subscription based Ownership

Aimed at the younger generations, a subscription-based ownership lets the consumer opt for a short-term subscription. This model lets them afford a vehicle at a lower price which might have been out of reach if they were to purchase. The younger generation have outstanding student debts, could be thinking of buying a home or wanting to travel. The short-term subscription lets them enjoy premium or even luxurious vehicle. With the ever growing and expanding technology in this modern world, the need and want to have the best and most developed technology in or outside of the vehicle is what the younger generation want. By using the subscription-based model, it lets them swap and change their vehicles to keep up with the latest trends and technology. So, the automotive industry has to tailor to the needs of the consumer and constantly be innovative leaders.

In conclusion, be prepared to see these trends emerge significantly in 2022 and become more accessible to a wider consumer in the coming years. Watch out as the automotive industry makes a rapid recovery from the blow in 2020 and continue to thrive, innovate and push the boundaries within the industry.