Now that 2024 is fully underway, we can start looking at how the next 12 months will affect the automotive industry. Last year saw some incredible shake-ups with EVs and Chinese-made vehicles, and for now, 2024 looks to be more of the same, at least during the first quarter of the year. Here are some of the top stories we're paying attention to in January and beyond.
Hyundai Sales Expected to Slow Down
Although the third-leading automaker saw a robust fourth quarter in 2023, the company doesn't have a rosy outlook in 2024. Thanks to economic uncertainties and relatively weak demand, Hyundai doesn't expect to see massive sales anytime in the near future.
While Hyundai is relatively optimistic about making inroads in North America, it expects to lose some of its market share in China and Europe. These decreases will likely be a result of bullish Chinese automakers expanding their reach and the lack of manufacturing prowess in the region. Hyundai had to sell its Russian plant because of the ongoing war in Ukraine, which resulted in a $219 million loss for the brand.
LG EV Chargers Come to the US
LG has always been a big name in consumer electronics, but now it's looking to expand into the EV market. The company opened its EV charger factory in Texas in mid-January, and it's already started production. LG's business model for the EV industry is owner-operated charging stations. This way, clients can set their own charging rates and earn more revenue, which is an attractive offer for companies in hospitality, healthcare, and retail.
Although the plant has just opened, it could make some big waves for EV stations stateside. As LG reaches out to its current partners, we expect that more businesses will take advantage of opening charging stations for their customers. Plus, as more people purchase EVs, the demand for an expanded charging network will only increase, giving LG more leverage.
Tesla Aims to Shake Off an Uneasy Start to the Year
For a while, Tesla was the name in the EV industry, bringing electric vehicles to market at at time when most other automakers weren't interested in going electric. However, a lot has changed in the past few years, and now, virtually all big players in the industry are rolling out their own EV options.
As a result, Tesla has seen its stock decline recently, and a slew of negative press has hampered its reputation both domestically and abroad. However, growing pains are a natural side effect of running any business, especially one as disruptive as Tesla. Fortunately, it still has compelling brand recognition, and recent downturns have little to no risk of damaging the business long-term.
Still, as the year gets underway, Tesla must ensure it stays ahead of the curve instead of falling behind the rapidly growing competition.
According to Toyota, EVs Will Only Take Up 30-Percent of the Market
Toyota continues to be the largest automaker in the world, and its chairman says that electric vehicles will only take up 30 percent of the entire automotive market. Given how EV demand has slowed somewhat and that many people around the world can't access affordable chargers (yet), his claim may be pretty prescient.
But, what will make up the other 70 percent? Realistically, fuel-burning cars aren't going anywhere, but there will likely be more hybrids and hydrogen fuel-cell vehicles in the future. This breakdown also highlights how the industry isn't binary or a zero-sum game. The choice isn't only between EVs and fuel-burning cars. Instead, there's a market for multiple types of vehicles, and it's unrealistic to assume that one will grow to dominate so completely over everything else.
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