Nowhere on the planet do cars matter like they do in the US. For the majority of American adults, having a car is a necessity. From commuting to work to getting to your favorite pastimes to visiting friends and family across the country, there’s no more reliable mode of transportation than a good car.
Lately, we’ve seen some upsets and slowdowns in the auto market. Used cars and new cars skyrocketed in price thanks to supply chain disruptions. Drivers worried about changing legislation regarding electric vehicles and gas usage.
What’s coming next? Read on to learn the latest trends and predictions in the auto market to get ahead of the curve.
Electric Vehicles Take the Stage
Over the past few years, we’ve watched the debate about electrical vehicle mandates ebb and flow. While it’s likely that auto manufacturing will see mandates in the coming future, it’s less likely that drivers will.
However, potential mandates aren’t the only things driving Americans to purchase EVs. Everything from rising gas prices to environmental concerns to brand trust is making an impact on EV sales.
Some experts predict that by 2030, EVs will account for two-thirds of all car sales. We’ll also see a rise in EV charging stations across the nation and a race among manufacturers to see who can produce the longest-lasting battery.
Self-Driving Cars Become Less of a Fantasy
Chances are, you’ve seen at least some talk of self-driving cars hitting the streets. Once belonging exclusively to the world of science fiction, self-driving cars are starting to materialize in the real world.
Currently, we tend to hear more about the problems these autonomous vehicles create than solve. For example, Tesla’s self-driving features don’t seem to consistently account for pedestrians, speed limit shifts, or other crucial road safety rules.
Still, more car companies are investing in autonomous technology as we speak. Heavy hitters like Ford, BMW, and Toyota have all thrown their hats in the ring, marking another great race in the global auto industry.
Cars Cement Their Place in the IoT
If you haven’t heard of the Internet of Things (IoT), you’ve almost definitely interacted with it. The IoT refers to the broad range of non-computer products and technologies that are internet-connected. You can consider the iPhone the dawn of the IoT. What came next, from smart speakers to smart TVs to smart appliances, expanded the scope of what could rely on online connectivity.
If your car has a so-called infotainment center, you’ve already adjusted to the IoT. However, the expansion of 5G means an even more connected and reliable driving experience.
What will this look like? In simple terms, you can expect a better, stronger signal, faster response times, and more customization. Plus, we’ll see tech giants like Apple taking the auto industry seriously and making major changes to the driving experience.
Americans Steer Clear of Oversized Cars
In the early 21st century, it seemed like many drivers abided by the idea that bigger is better. Hummers dominated the road, oversized SUVs cropped up in every suburb, and lifted pickup trucks gained aesthetic popularity.
We’re now seeing a shift away from oversized cars and toward compact SUVs like the Acura RDX. Many of the same factors that are bolstering the EV market are driving this shift, too.
On top of rising gas prices and environmental concerns, American roadways are shifting. Parking spots are becoming more compact, parallel parking is becoming a must in most towns and cities, and the proliferation of bike lanes is narrowing roadways. Compact SUVs are the perfect solution to keep those extra seats without taking up quite as much space (or gas).
The Supply Chain Mends Itself
Vehicle sales in 2021 and 2022 hit some major roadblocks due to rising costs. Even used cars hit prices that were hard for their target market to afford. The biggest culprit was the disrupted supply chain.
Thanks to the global pandemic and other factors, getting raw materials used in auto manufacturing became difficult for several years in a row. For example, car manufacturers couldn’t get the microchips used in most modern cars in the numbers they needed.
The supply chain disruption caused new cars and car maintenance to go up in cost, putting a resulting strain on the used car market. As the supply chain mends itself, car dealers and mechanics should return to stabilized pricing.
Micro-Mobility Shakes Things Up
City dwellers with short commutes are looking for ways to ditch their cars altogether. This eliminates the cost of car payments, insurance coverage, gas, and parking. However, they aren’t taking to walking in the meantime.
Micro-mobility is a relatively new word that refers to small motorized modes of transportation. All those electric scooters and e-bikes you’ve been seeing on the road? They’re part of the micro-mobility trend, and they’re here to stay.
The impact this will have on the auto industry is unclear. City dwellers have always been less likely to own cars than people in suburban or rural areas. However, it could lead to some interesting brand collaborations.
Luxury Brands Bounce Back
Luxury car sales tend to mirror the state of the economy, which is getting weirder with each passing year. While the middle class dwindles under the pressure of inflation, the rich get richer.
Many luxury brands saw dropping numbers last year, signifying either an economic downturn or a disinterest in cars as a way to show off wealth. Now, they’re making a historic comeback, with some classic companies leading the charge.
Plus, we’re seeing companies that aren’t known for luxury vehicles changing up their marketing. It seems like every company is now calling their most expensive make and model their luxury car.
Prepare for a Rapidly Shifting Auto Market
If you’ve had a hard time finding the right car in the past few years, you aren’t alone. The good news is that the auto market is going through changes that may work in your favor.
Are you wondering what other changes to expect this year and the years to come? Take a look around to learn all about trends in tech, beauty, health, and beyond.
