2021 Trends Expected in the Automotive Industry

2021 Trends Expected in the Automotive Industry

It is with no doubt that 2020 was a very difficult year for the auto industry. With the pandemic and financial pressure, there was need for priority redefinition in areas with quicker payback periods, such as Electric Vehicles (EV) and autonomous drive. For that reason, 2021 will be a great year full of opportunities. Here are six automotive trends to look forward to.

<h2>Mergers and Acquisitions</h2>

Unfortunately, several companies may never recover from 2020. The inherent financial pressures will push some companies to negotiate for acquisitions and open up new possibilities for mergers between companies. Likewise, this may mean bankruptcy for automotive suppliers who have not transitioned to electrification or digitized their value chains.

<h2>Growth of EV</h2>

In Europe, growth will accelerate even further, mainly because the EU enforces very strict legislation on carbon dioxide emission. The Chinese government will reduce incentives on New Energy Vehicles by 20% and restrict ICE registration. In the United States, there are high expectations on how the new government will increase its support for EVs.

<h2>Startups and Open Platforms for EV</h2>

Tesla’s success has encouraged many other entrepreneurs to follow in ElonMusk’ss footsteps. 2021 will mark the start of new EV startups such as Fisker, Lucid or Rivian. Keen to forming the next EV startup, there’s an opportunity to launch open-source EV platforms.

<h2>Autonomous drive: L3 on the road, L4 in the hands of technology</h2>

After a long wait, in 2021, several car manufacturers such as Ford, GM, Honda, Toyota, etc., will deploy the market’s L3 autonomy. The new UnitedNation’ss regulations are currently in place to provide automakers with clear regulations that are needed to advance.

<h2>Beginning of the retail and after sales revolution</h2>

In 2020, the pandemic brought about dealership closures, which has prompted players to pay more attention to online sales. The adoption of high-level digital solutions is required to engage with customers and increase their satisfaction level.

<h2>Transition to high-value digital services</h2>

Traditionally, it has been difficult for automakers to show their customers the value of connected car services. For this reason, automakers will increasingly turn to connected services where it’s easier for consumers to associate price and value. An example is digital feature upgrades.