In the last 100 years the car industry has come a long way. But there are no signs of advancements slowing down any time soon. In fact, with rapid improvements in technology and the COVID-19 pandemic accelerating changes across multiple areas, the car industry looks set to change in ways we couldn’t have previously imagined even just a decade ago.
So with big changes on the horizon, here are some of our top predictions for the major trends set to rocket over the next few years.
The rise of electric
Already on the increase, electric vehicles are set to take off in a huge way over the coming years. Particularly thanks to governments around the world setting targets to move all road vehicles to electric. In the UK, the government has declared all sales of new petrol and diesel vehicles to be outlawed by 2030. Government policy, combined with an increased appetite for environmentally-friendly vehicles from consumers, has applied the pressure on car manufacturers to not only produce more electric vehicles, but to put resources into working to bring down the prices of expensive battery packs and other EV technology.
Whilst Electric vehicles are currently still on the pricier side, those costs are coming down and in the next few years we expect to see this continue leading to greater accessibility of electric cars for all.
More second hand buyers
With electric vehicle technology and battery packs still relatively costly, as more people opt for electric vehicles it will be necessary for many to buy these second hand in order to find more reasonable deals in the market.
Value for money will also become increasingly important to customers who are driving their cars less regularly than they were pre-pandemic. As such, the second hand market looks likely to boom thanks to offering significantly higher value for money - particularly on those cars in the 3 year sweet spot; at which point their cost has roughly halved yet performance is still good.
In the modern day subscription services are revolutionising multiple industries, and the car industry is no different. Signing up to a car subscription service typically means paying one monthly cost, which covers everything from insurance to road tax, in exchange for a car. Providers operate differently but some have no minimum contract length, and all have greater flexibility than more traditional offerings.
Flexibility, ease of use, and the speed at which you can go from signing up to having a car outside your front door are all becoming minimum requirements for younger generations - whether that’s in relation to looking for a car or shopping for clothes. So car subscription services certainly look likely to take off in a huge way in the coming years.
Cars for the Weekend
The pandemic has rapidly accelerated the movement towards working from home. And whilst some companies will return full time to the office, many others will not. Subsequently, we should see commuting decrease and car mileages dropping.
For many people, their cars will become most used for short trips to shops nearby and weekend outings. And as user behaviour and consumer need changes, so too will the cars that are most frequently being purchased as manufacturers adapt to a new type of customer.