It is imperative to be on top of your game in the automotive industry as competition is at an all-time high. Analyzing and understanding current and future trends is essential for both manufacturers and dealers to come up with solid strategies to keep their businesses running smoothly.
Top Trends of 2024
Rise of Electric Vehicles (EVs)
EV sales have witnessed a significant increase in recent years, with Tesla dominating the EV space and the all-electric Hyundai IONIQ 6 being named car of the Year in 2023. Eco-friendly initiatives are definitely the focus for future-forward manufacturers, but longer-lasting batteries, better pricing strategies, and widespread availability of public charging stations are also required.
Digital Strategies Continue to Rule
Consumers are relying greatly on online research before starting their buying journey. It is important to develop effective automotive digital marketing strategies to reach the online audience, since they’re gradually shifting towards making purchasing decisions online or via a smartphone, which has led to the rise of virtual showrooms. Consumers check out the dealership’s website, analyze inventory to narrow down makes and models, scout financing options, etc. before actually visiting the dealership.
Emergence of AI (artificial intelligence)
Generative AI tools work wonders when it comes to helping marketing teams compile and analyze massive amounts of digital data dumps quickly and efficiently. AI can also convert offline data such as phone calls into insights that help demonstrate the effectiveness of marketing campaigns and can lead to more sales. Chatbots can hyper-personalize experiences for customers, while answering questions and clarifying doubts.
In-car Connected Experience
Connectivity can either be embedded in the car via computer chip technology or tethered by using interactive apps on a driver’s smartphone. Using technologies like cloud computing, machine learning and Internet of Things (IoT), sensors can enhance safety by alerting drivers if they are too close to the car they are following, diagnose vehicle health, activate parking assist, generate alerts regarding driver fatigue and more.
What to expect in 2025?
As we head into 2025, let us find out about the upcoming automotive trends that are likely to influence the market.
Connected Cars
Connected cars can communicate with each other and with the more advanced Vehicle-to-Everything (V2X) feature, they can communicate with systems outside the vehicle, infrastructure, and even pedestrians. It generates real-time data, which helps prevent accidents, reduce traffic, and enable effective route planning. 2025 will witness the integration of 5G technology in vehicles that ensures swift data transmission, while boosting the in-car experience. Passengers can high-definition content, participate in video calls, or access cloud-based applications.
EVs and AVs
As mentioned above, EVs are rapidly becoming the go-to choice for those looking for eco-friendly solutions when it comes to vehicles. Automakers are introducing EVs across all vehicle segments, and with advances in battery technology and mass production, the cost of producing EVs is likely to decline. Autonomous Vehicles (AVs) that handle most driving tasks on their own with little human oversight are being developed speedily. Semi-autonomous features have already been introduced such as automated emergency braking, lane-keeping assistance, and adaptive cruise control.
Shared Mobility and Subscription-based Services
Car rentals, subscription-based services, and shared mobility are becoming quite popular in cities and towns where traffic is increasing every day. Shared mobility paves way for flexible and on-demand transportation at your convenience, while subscription services let consumers rent cars for extended periods, without having to shell out a lump sum required to buy a vehicle.
2024 has been a good year for the automotive industry, with sales picking up in certain segments and the supply chain gradually normalizing. Fortunately, the upcoming year promises to be even better provided that manufacturers and dealerships can interpret and capitalize on the trends.
