As the year winds down, it's natural to look at the previous months and see how far we've come in the last year. Some incredible automotive industry trends happened in 2023, and we're excited to look forward to 2024 and beyond. In case you missed some of the biggest auto industry news stories, let's break down some of the most influential things that occurred this year.
The EV Market Continues Its Meteoric Rise
Electric vehicles have essentially changed the game within the automotive industry, and everyone is racing to keep up with demand. While early pioneers like Tesla have had some missteps in recent years, the overall marketplace is shifting toward EVs in a big way. Traditional automakers like Ford and Toyota have gotten in on the action, and there's a lot of investment in developing better vehicles, more charging stations, and a more reliable charging network. Pay attention to EV auto industry trends, as they will likely impact the rest of the field by default.
China Outpaces the Competition
Until recently, China was not a major contender in producing vehicles for the global marketplace. In 2023, that all changed, and now China is outpacing previous leaders like Germany, Japan, and the United States.
This competition is both good for business and bad for business. There's more of a focus on high-tech gadgetry and customer-focused features, but this trend also increases demand for parts like lithium batteries and computer chips. Whereas China was happy to sell its chips to other nations, now it needs to keep more for its own auto industry.
Also, China is affecting the price of cars by selling its vehicles at cheaper prices. Unfortunately, competitors can't subsidize their inventory, so it's hard to stay competitive. We'll see how this shakeup plays out over the next few years.
Used Cars vs. New Cars: A Tale of Limited Supplies
Although the COVID-19 pandemic is officially over, the automotive industry is still reeling from its effects. Supply chain issues have become the norm for the past three years, and while there have been major advancements, the industry is still not where it was pre-pandemic.
Because of the lack of new materials and workers in factories, the demand for used cars shot up like a rocket. In some cases, a used car could be as expensive as a new one, creating an interesting competitive marketplace. While things have quieted down since the summer, the industry isn't out of the woods yet.
Demand is High, But Workers and Materials are Low
Even as automakers rush to satisfy consumer demand, there are a few bottlenecks where shortages can matter most. One example is a lack of computer chips, which are necessary for all modern vehicles that rely on sensors, touch screens, and now AI technology. Another example is a lack of EV technicians, making it harder to service electric vehicles when they break down.
Overall, in 2023, the industry struggled to catch up from its pandemic woes, but it will likely be another year or so before it can get back to pre-pandemic normalcy.
November Automotive Industry News
The year has had a lot of ups and downs, but it's not over yet. Here are a couple of automotive industry trends to pay attention to as we head into 2024.
COP28 Could Determine the Future of Auto Trends
The Climate Change Conference of 2023 will take place from November 30th to December 12th in Dubai. As with previous conferences, the goal is for nations and organizations around the world to come together to discuss the challenges of climate change and how to overcome them.
For the automotive industry, these conferences usually end up creating more regulations and stiffer oversight. Auto emissions are always a primary target, as well as the environmental impact of sourcing raw materials for new cars.
While it's unclear what will happen at this year's conference, it will likely have a substantial ripple effect on the industry. The effects will likely reinforce EV demand and force automakers to be more energy-efficient with their non-EV products.
Automakers Focus on New Markets
Thanks to a perfect storm of different factors, automotive utilization capacity is still not at pre-pandemic levels. While the industry has somewhat recovered over the last three years, the data is troubling. Major markets like the US and China may be reaching their capacity, meaning that automakers have to shift focus to emerging markets.
Fortunately, South America and Africa are still relatively underutilized, but the industry isn't really equipped to provide these regions en masse just yet. Realistically, automakers will likely take a "wait and see" approach before making any seismic changes, but we'll see how long this trend lasts.
Get Updates on Auto Industry News From LINTEC Automotive
Automotive industry trends happen quickly, so it's hard to keep up with the latest stories. LINTEC Auto can help you stay up-to-date with the newest trends, so you're always well-informed. Sign up for our newsletter and follow us on LinkedIn to take charge in 2024 and beyond.