We all know that automotive industry is going through a remarkable shift, the automotive manufacturers are busy with regards to get this shift on roads.
The automotive industry is thriving due to increase in the number of people opting for comfortable drive and being blessed with disposable income in the hand. Due to better purchasing power, the buyers are ready to pay extra for the accessories as well.
However, last year, though the price increased for these vehicles, there was a shortage of semiconductor which hit the automotive industry to a great extent. That said, we can expect a great shift in the industry nudging towards the electrification of cars with zero emission.
Some experts from the industry talk about auto industry predictions and what the future will look like for the automotive sector.
Here are the 12 auto industry expert predictions for 2022-
- Fewer Discounts from the Dealers and Manufacturers of Automotive Sector :
The experts are of an opinion that even though inventories may remain low, the prices are surely witnessing the upward curve. Due to the covid pandemic woes and the shortage of semiconductor the units manufactured remained low during 2021, however, there is no reduction in the prices of these vehicles due to high labour cost and raw components. Therefore, in 2022, there would be fewer discounts from the dealers and manufacturers of automotive sector.
- Growing Market for Vehicle Customization:
The next prediction from the industry experts for 2022 is about the growing market for vehicle customization. The older vehicle getting customized and transformed in new ways is gaining the momentum and will continue to grow as the next generation automotive builders come up. The Lightning Truck from Ford and The Hummer from General Motors are getting into vehicle customization and the demand for the same is to expand remarkably in the future.
- Dependency on the Public Transport is Reduced:
The customers will pay more for the vehicles because there are already a large population that has good disposable income at hand. The demand for personal vehicles is witnessing a surge and not affected by the price factor. Pat Ryan, CEO – CoPilot cites an example saying – At Manhattan in New York, people would take public transport due to the ongoing construction across the area, however, the construction companies purchased the garages nearby and the construction staff are now seen driving their cars and the dependency on the public transport is reduced.
- No wide Range of Vehicles be available due to Shortage from Supply Chain:
The auto industry expert predictions for 2022 is that of no wide range of vehicles be available due to shortage from supply chain. The automakers are not producing the all ranges of vehicles, especially the high-end vehicles. Cars like Mercedes are low on production.
- Demand for Sports Cars is also Declining:
No Demand for Sports Cars and Sedans is expected in 2022 as per the auto industry expert predictions for 2022. The sales of sedan cars did not witness any surge last year. The demand for sports cars is also declining and been dwindling for some time.
- Vintage Sports Cars are Expected to Witness a surge in the Demand:
The vintage sports cars are expected to witness a surge in the demand as per the auto industry expert predictions for 2022, in the contrast the demand for the new sports cars have declined.
- Automakers will produce that are expected to Boost the Profitability:
According to the experts, the utility cars demand is expected to boost in 2022, while there is a decline in the sedan cars. As per the recent industry trends, the consumers prefer utility cars over passenger cars, thus, the automakers will produce that are expected to boost the profitability.
- Shortage of Semiconductor is Posing Challenges:
Less features are another prediction out of 12 auto industry predictions by experts, the shortage of semiconductor is posing challenges in the automotive industry. Semiconductor is the heart of the automotive technology, therefore the shortage of the same is leading to less available features in the new cars.
- Used Cars are likely to Depreciate Slowly:
The used cars won’t depreciate or wear and tear as quickly as used to be in the past, says the experts in auto industry. Since the sales has declined, the production is also not on a booming scale, the used cars are likely to depreciate slowly.
- Automakers are finding New ways to Showcase:
The auto shows were impacted due to the pandemic, however in 2022 the auto shows are coming back and will evolve. The automakers are finding new ways to showcase the vehicles to consumers. The consumers would get a chance to test drive these vehicles in such auto shows.
- Shortfall would be the Demand in the Electric and Hybrid Vehicles:
Although there is a short supply of semiconductor chip, the other side of this shortfall would be the demand in the electric and hybrid vehicles. Therefore, the automakers will have to shift their focus on electric vehicles and cater to the needs of consumers and zero emission.
- Thrive as now People prefer their O0wn Cars as compared to Shared Vehicles or Public Transport:
According to the 12 industry expert predictions for 2022, the automotive market will thrive as now people prefer their own cars as compared to shared vehicles or public transport. The USA may witness the sales of 15.5 million units in the year 2022.