Significant shifts occurred in the automotive industry during 2024. As we move towards a more digitised world and technology continues to evolve at a rapid rate, the industry has embraced technological advancement. Meanwhile, concerns over climate change are heightened, and several manufacturers have turned to the development of more sustainable models and methods. Furthermore, customer preferences have changed, and consumers expect more from their car than it just being a way to travel from A to B. These days, cars need to offer more than just an enjoyable driving experience. There has certainly a lot for the industry to consider this year: read on for a breakdown of the key auto industry trends of 2024.
Rise of Electric Vehicles
More and more consumers are focused on sustainability and the emergence of new technologies, and nowhere is this more apparent than in the continued rise of electric vehicles. EV technology has advanced drastically over the past few years, with notable developments occurring in the longevity and efficiency of batteries. The number of manufacturers that offer EVs has also expanded, with Tesla no longer the only option for drivers interested in an electric car.
Autonomous and Connected Vehicles
Just like our homes and phones, our cars are getting smarter. Whilst autonomous vehicles are a long way from our roads, this year saw a continuation in research and development that will eventually lead to driverless cars launching on the market. In the meantime, car connectivity has developed, with the increase in features like vehicle-to-vehicle communication and further integration with smart devices.
Sustainability Focus
It is not only the rise of the electric vehicle that indicates an increased interest in sustainability in the automotive industry. Hybrid models offer a midway point between petrol or diesel vehicles and EVs, but we have also seen manufacturers embrace the use of recycled materials, carbon neutral practices, and increased fuel efficiency. These changes are designed to create a smoother transition between the current auto industry and a greener future model.
Digital Retailing
In the past, you could only purchase a car by going into a dealership or meeting a seller in person. Now car sales are following in the footsteps of the wider commercial sector and moving to an online model. Although most consumers will prefer to purchase a car in person so that they can try before they buy, in 2024 there has been far more scope to research your chosen model online and even select your preferred customisations without setting foot in a dealership.
Challenges with Chip Shortages and Costs
The quiet hero of technology, semiconductor chips are essential to car manufacturing. Unfortunately, there have been issues with shortages since the pandemic, when demand and thus manufacturing for the chips decreased and are yet to recover. There are also issues around the cost of updating older technologies, a need to increase manufacturing efficiency, and the fact that plants are closing instead of increasing in number. Luckily, there has been a rise in investment in their manufacture in the past couple of years, plus some car makers have moved away from a semiconductor chip model to alternatives. The path forward is unclear, but there is hope for the future.
Micromobility and Urban Solutions
Although cars dominate the automotive industry, there has been an increase in other mobility vehicles, particularly for consumers in urban areas. Electric scooters and bikes are the most popular alternatives, whether they are purchased by individuals or used on a rental basis. Ride sharing apps also remain a prevalent alternative, alongside the more traditional options of public transport and taxis. Many cities have faced proposals to become less car focused, so it is likely that these alternative options will continue to rise in popularity if these proposals come to fruition.
Advanced Safety Features
As mentioned in point 2, our cars are getting smarter, therefore they are better equipped to keep us and other road users safe. It is becoming the norm for vehicles to come with built in safety features, like collision detection warnings and adaptive cruise control. Interestingly, these features will also be crucial in the development of autonomous cars, so are likely to be a focus soon, as a way of bridging the gap between current and future models.
Subscription Models
Will car ownership start to look like a Netflix subscription? That may be a little far-fetched, but subscription models are emerging in the automotive industry. There is gradual growth in car subscriptions, where you use the vehicle for a specified amount of time, to avoid the long-term commitment of car ownership. It’s a model that may suit a range of drivers, but still needs some details ironed out, including the high cost of a subscription that could put off everyday users.
From sustainability to micromobility, it’s been quite the year for the automotive industry! These trends may continue to be the focus in the new year, but we are likely to face a whole new set of developments too. Let’s see what 2025 brings.