In late 2019, when news of a rapidly spreading virus first surfaced, most failed to consider the long-term effects of the virus. Almost no one knew the severity of the virus and the fact that it would become a global pandemic and alter the future of the world. In the Auto Industry, factory shutdowns began around March. Jobs were lost and production slowed, but still, most people did not realize the extent to which the pandemic would change the industry. The following are notable trends within the auto industry that may actualize following the coronavirus pandemic.
Subscription Services Are on the Rise: A number of vehicle companies, such as BMW and Audi, offer subscriptions that allow drivers to switch between vehicles each year. Though not generally the most affordable option, consumers love car subscriptions because of the flexibility it offers and its inclusion of insurance and maintenance repairs. Subscriptions offer freedom to choose and a taste of luxury, no matter your location.
Vehicles Impacting Health: New Health, Wellness, and Wellbeing (HWW) features are being implemented in cars like ionizers and ozonizers that purify in-vehicle air. Self-cleaning features for car surfaces will also become commonplace.
Reinvented Styles: The hatchback could make a comeback. The 2020 VW Golf is sparking the trend of the style. If a pandemic has prompted anything, it’s a desire for change. Whether driven by the immobility of a pandemic or Gen Z’s style ideas, changes will occur.
Financial Differences Worldwide: The auto industry is recovering at different rates in different regions. Notably, the car industry grew in China in the months of April and May but declined in Europe and India.
Remote Work: Now that remote work has been attempted, many companies will choose to continue working remotely, despite where the pandemic’s numbers may lead. Workers who are no longer required to commute to work will decrease personal mileage tremendously, and if remote work remains prevalent, the decreased mileage could have not only individual but global effects. This trend could affect the future of the automotive industry. Sales would decline, and lower commuting miles will be felt in lower aftermarket sales.
Cars as a Marketplace: It is probable that everything related to on route mobility will take place in a car within the next few years. Soon, customers will be able to pay for tolls, refuel, and purchase services, all from the interior of their vehicles. This will largely transform cars from vehicles to lifestyles.
IoT Platforms: Operating systems will soon be standard for vehicles. Automotive producers will offer hundreds of options to customize car features. Connected cars will be dominant in the auto industry within high-end cars.
Shifting Online: Online car sales have already started to shift, with cars readily available for rent and purchase through sites. The online method limits human interaction, one of the most valuable things currently.
Product Lifestyle to Grow: Car companies are selling more than just physical cars. The sale of new technological and stylistic features is certain. People want to customize as much as possible, and companies are looking to deliver that.
Used Cars Take the Stage: The used car market will have a strong rebirth. Auction prices for used cars are currently on the rise. Used car companies are even seeing increasing customer satisfaction rates.
COVID has certainly impacted the auto industry, but the future is not destined to be negative. Automakers are adapting to current times, and trends stemming from the pandemic are promising.