Coming out of the onslaught of COVID-19, the automotive industry has both remodelled and transformed out of its traditional habitat. There are now new horizons beaming out as we step into 2022.
The need of the hour is no longer a vehicle that can take you from place to place. Technology, sophistication and comfort play a key role in any car’s viability in the market. Considering these factors, here are the top four upcoming trends that we can look forward to in the automotive industry in 2022.
1) Electric Cars On The Rise
2022 might be the year more countries switch to electric vehicles (EVs). Innovative technology have brought down battery prices and are also making the upfront cost of electric vehicles closer to that of Internal Combustion Engines (ICEs).
Advantages: Zero emissions, high energy to power ratio, advanced technology, lesser number of parts, better ride comfort and incentives from government.
If you thought that there are only start-ups or few players in the EV market, the legacy players have taken the EV route and are spending time and effort to promote their EV line-up.
2) Feature-Rich Cars-The Future
Think about it: 360-degree turn-able seats, dual sunroofs… These were some new features of the yesteryear. Now these have become standard in some 2021 cars such as the Kia telluride.
Ford spent a whooping 7.1 billion USD on Research and Development in 2020-statista. Manufacturers are not only eyeing to meet the unmet needs but are also competing closely with counterparts to ensure what they provide is the best. We expect 2022 to have more competition in the feature department. Ground-breaking innovations may also be on the cards.
3)Direct To Customer (DTC) ServicesUpcoming Trends in Automotive Industry in 2022
Companies have started to remove traditional intermediaries, like retailers. This enables cost reduction while simultaneously taking more control of the end-to-end customer experience.
Covid-19 has played a huge part and has proven the success of direct to customers during non-contact social distancing days.
Our Thoughts: D2C is great but it will still be a mix of both Online and Offline interaction.
Though online sales and communication have increased during the Covid-19 pandemic, most consumers still prefer the offline mode. Come 2022, the sale and communication will be hybrid, including both offline and online, with the share of online sales expected to increase further.
4) Mergers And Collaborations
With innovative technology as the need of the hour, manufacturers have started mergers and collaborations to share parts, design and technology through MOUs. These mergers help manufacturers innovate more efficiently and pool developmental resources. Mergers are expected to increase in 2022.
Recent handshakes: Maruti and Toyota – 2020; Volkswagen and Skoda – 2019
These mergers are likely to produce cars which challenge the leaders. For example, Maruti and Toyota are expected to come up with an SUV in 2022, which has the potential to challenge the most selling SUV in CY2020, Hyundai Creta.