3 Automotive Trends For Investors To Watch in 2021
As an investor, you have to keep up with trends to determine where to put your money to obtain maximum profits. The automotive industry is a profitable place to put your money in, but you have to be familiar with the workings of the sector before investing.
We believe 2021 will foster positive trends for the automotive sector despite the financial losses of many automotive companies in 2018 and 2019. The failures of these companies arose as a result of growing competition, stricter lending stipulations, the four crucial aspects of the revolutionary CASE transformation, etc. Also, we have the BRIC group’s financial shortfall, which is made up of Brazil, India, China, and Russia. In addition to the 2018 and 2019 shortfall, we have the dampening economic effects of the coronavirus pandemic. The massive historical dip in automobile purchases happened in early 2020. All of these factors contributed to a sharp reduction in worldwide demand for automobiles.
The market is slowly recovering. Experts have predicted that there would be an 8% rise in the sale of cars in 2021. A pointer to this is how China and the USA sale in automobiles picked up in the third quarter of 2020, with China having a larger share of the progress. India and Europe are also expected to improve sales, but car sales could take a further hit with the recent lockdown declared in those two places.
The market will surely recover, but the recovery rate would vary. One of the factors that would contribute to this uneven progress is that new carmakers focus on fascinating the customer more with their customer-centric business model. In addition to this, some automobile manufacturers now focus on areas in car manufacturing that can give them instant rewards. As recommended by automobile experts in best essay writing service, we will now examine the 3 Automotive Trends For Investors To Watch in 2021
Digitization of Cars
Digitization of cars starts from the period of purchase to the car functionality itself. Instead of leaving the comfort of your house to buy a vehicle, you can perform all the necessary transactions online. We want to credit the pandemic for inspiring online means of purchasing vehicles but buying vehicles online had existed before the pandemic. In some parts of Europe and North America, purchasing cars online is not a new thing as they both boast of structured automobile markets. North America has Tesla to thank for this revolutionary means of buying a car. Elon
However, the coronavirus pandemic has increased the purchase of cars drastically digitally. These online car markets offer the same benefits as a showroom, as you can fix appointments for a test drive even. The prices also remain the same. So, why stress yourself visiting a physical store.
The growth of online car stores will increase masterful digital marketing strategies, which would involve the heavy use of social media influencers. If you are skeptical, you should know that influencers are used to make more people test drive cars in China. Also, digital sales allow customers to interact with the car seller.
Another aspect of the digitization of cars is the prediction that carmakers will incorporate some external elements which are not familiar with automobile production. Carmakers will soon become digital companies. An example of this is Tesla. The success of Tesla and other similar companies will push carmakers to adopt the digital automobile model method. This method will cause a massive spike in the production of electric and connected vehicles. Also, this would influence the manufacturing of more autonomous automobiles. Following the digitization path with cause a massive increase in the creation of new and unique car operating systems for the new companies who would soon become players.
Another aspect of car Digitization is the connected car. The connected car has been a traditional market carmaker couldn’t crack until Elon Musk showed them how with Tesla. Through the IoT (Internet of Things), connected cars will become better. Your car can be your cinema, your browser, and a host of other things. Connected cars provide more comfort and more excellent UX than traditional cars. Customers now prefer vehicles that give them the convenience of being in their homes. The usage of connected cars is predicted to open the path to leasing, a new payment system is calculated by the patterns of car usage, etc. Trust car makers to what to tap into this new preference of customers.
The Rise of Other forms of Mobility
The pandemic has out the fear of being with a crowd in a lot of people. During the pandemic, people who could afford cars entered leasing agreements to obtain personal vehicles—those who couldn’t decide to invest in micro-mobility. A lot of people purchased electric bikes, electric scooters, bicycles, etc. The trend wouldn’t stop as customers have come to enjoy their new means of transportation. It would be challenging for someone wanting the comfort of their micro-mobility to switch to public transit quickly. The prediction is with first-time users. There would be a greater rise in new customers deciding to invest in different forms of micro-mobility.
Year of the Electric Vehicle
What carmakers are thinking right now is how they can be like Elon Musk and penetrate the EV market. Many carmakers, new or old, are now seeing the light on electric vehicles. There are new electric vehicle makers, and more startups are on the rise.
Europe will be one of the hotspots for the rise of Electric Vehicles because of their strict carbon dioxide laws. China will continue to favor electric vehicles, but it would think of other means to fund its interest. It will reduce its current incentives on electric cars and other new energy vehicles.
The USA carmakers won’t be left out of the electric vehicle scramble as the Biden administration plans to massively fund the production of electric vehicles with about $174 billion. This will serve as a massive boost for the USA. It will lead to more significant growth in the use and production of electric vehicles than seen in the past. However, preparing the ground for the benefit of electric vehicles legally could take a few months.
The use of electric vehicles will boost startups with lesser funds as there will be more open-source electric vehicle software. These open-source electric vehicle software would allow startups to create an electric car and adopt readily available software.
3 Automotive Trends For Investors To Watch in 2021 Written by:
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