Leading experts claim that interest in sports cars and sedans will decrease, cars will become more expensive and their supply will be narrowed. The possibility of individualization of individual forms will also be reduced.
Photo: TASR / AP
According to experts, car sales should rebound next year, and this is true if the semiconductor crisis can be avoided.
Newsweek spoke with several managers and experts from the automotive and related industries. From their answers, we pick 12 interesting trends that should be decisive in the automotive field this year. Respondents discussed included JD Power Vice President for Data and Analytics Tyson Gomini, SEMA Vice President Mike Spagnola, Pat Ryan, CEO and Founder of CoPilot, Stephanie Brinley, Senior Analyst at IHS Markit, among others.
Prediction Number 1: Cars will become more expensive
This will lead to higher costs of wages and materials and also to a change in the method of production, which takes into account much higher stocks, which are more expensive. In Europe, a strict emissions policy and ever-increasing demands on car safety will contribute to this. Just for fun—as of 2017, nearly 20 percent of American cars sold in the lowest price range were under $20,000. Today, only one percent of cars sold belong to it.
Prediction #2: There will be an increase in interest in individual reconstruction
“Taking and restyling an old car is becoming more common, and I think the interest in conversions will increase, but it could become more evident in 2023 and 2024,” said Mike Spaniola, vice president of the well-known SEMA trade show. . The market for parts and materials for customization will also grow, as car manufacturers will try to take out companies that have specialized in this sector until now.
Prediction Number 3: People will be willing to invest more in cars and equipment
The reason is simple in this case – mobility has decreased, people have stopped shopping and their savings have started to grow. At the same time, in terms of Covid security, interest in individual transportation is increasing significantly and is declining in public transportation. Therefore, people will buy more cars at higher prices.
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Prediction Number 4: The number of models and types sold will decrease
The crisis in subcontracting chains is pressing the simplification of the production of cars and their lower cost, so the amount of additional individual equipment on offer will decrease, in addition, it will begin to be offered in several packages, consisting of several products. Thus, the 50 price lists and multiple pages of some models that have existed until now will gradually become a thing of the past.
Prediction #5: Interest in sedans and sports cars will decrease
Interest in sedans has steadily declined globally for nearly half a decade and this trend will continue. They are taken out of the market mainly by crossovers and SUVs. Interest in sports cars is decreasing because they have one purpose, their prices and operating costs, and last but not least, parking costs are rising. Therefore, few people in cities can afford to own several cars, one of which will be “just for fun”.
Prediction #6: There will be increased interest in veterans
It’s also a long-term trend. Interest in old cars, especially sports cars, is increasing significantly, and many see it as a good investment opportunity. Because of lower interest rates in banks, more and more people are looking for them, and many are looking for vintage cars that already have historical value or are expected to acquire quickly and continue to grow.
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Prediction number 7: More commercial vehicles will be sold
Sales of passenger cars have fallen significantly, and sales of commercial vehicles have not fallen significantly, because companies simply need them for their business. Its manufacturers are also aware of this, and they also have a higher margin than many small passenger cars and lower-middle-class cars.
Prediction number 8: The amount of additional equipment will decrease
This trend is again connected with the semiconductor crisis and at the same time with the efforts of automobiles to reduce the price of production as much as possible and increase their own margin. It is ideal for them to sell expensive cars with limited possibilities for customization, and in this direction their presentation will be set in 2022.
Prediction Number 9: Used cars are getting more expensive
The price of used cars will rise or fall in value more slowly than before. This trend was already noticeable in 2021, when, for example, prices for used cars that are one or two years old can be compared with prices for new ones. A lesser known fact is mentioned in the US analysis of CoPilot, which states that just as fast as prices for 3-year-olds and newer cars last year, prices for older vehicles 13 and over were still rising. The reason is that there are no new cars on the market due to the lack of some components and materials and their high prices.
Prediction number 10: The way vehicles are displayed will change
Last year, car shows were not held at all or on a limited scale and in various innovative forms. It is said that the change in the way of presentation will be permanent, more and more demonstration events will be added to different places where automakers will try to attract customers with original experiences, and thus demonstration tours will be more and more displayed – not only in workshops but also in specialized events in circuits or exhibitions. The sales and marketing events delivered through streams will also increase in importance.
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Prediction Number 11: Interest in electric cars will grow
This trend is not surprising. The popularity and sales of electric vehicles began to rise significantly in early 2019 and 2020, and the trend has been gaining momentum ever since. In 2022, nothing will change and the demand for electric cars will increase in the USA, Europe and China as well. It’s even so big there now that the state will end its electric vehicle subsidy programs starting next year.
Prediction Number 12: Global car sales will increase
If an unexpected situation does not arise, then this year the global new car market should not only begin to stabilize, but also grow. People have saved money on new cars, and in addition, interest in individual transportation is growing due to the virus. It can only be limited by the ongoing semiconductor crisis.
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