Even in established industries, everything can change at the drop of a hat. Just look at how the COVID-19 pandemic caused devastating supply chain issues in the automotive industry. The effects of that linger to this very day.
Luckily for us all, the pandemic is already in hindsight. The automotive industry has begun to bounce back, and economists can make more effective predictions for the trends of 2023 cars. Question is, what are those trends, and what should we be preparing for in 2023?
In this guide, we hope to answer all those questions and more. Keep reading for the definitive guide on the future of the automotive industry in Canada and abroad.
The Automotive Industry Will Focus on Digital Vending Platforms
The days of auto dealerships and showrooms may be over–at least for the most part. Many popular car brands offer the option to customize your vehicle entirely online. Financing for vehicles can be done through online platforms as well, allowing people to purchase vehicles from the comfort of their homes.
Of course, people must get to experience their car in person before committing. To alleviate this, car buying options may include things like:
- Virtual walkthroughs to view the interior and exterior of the vehicle
- At-home virtual test drives to get a “feel” for the vehicle
- Direct-to-doorstep vehicle delivery
Online shopping did a lot of damage to malls and other brick-and-mortar businesses. Something similar will likely happen with dealerships, albeit likely not to the same degree.
The same will likely occur for digital vehicle marketing. The lion’s share of vehicle marketing was often in targeted video ads and commercials. Now, we may see this evolve alongside other current marketing trends.
Used Vehicle Sales Will Include a Boom in Electric Vehicles
Used vehicle sales experienced an explosion during the pandemic, primarily as a result of the aforementioned chip shortage. The cost of used vehicles rose to this sudden demand.
Fortunately, refurbishing has improved for all types of vehicles. Nowadays, people can purchase certified pre-owned vehicles. This is a car that has been evaluated and repaired by experts to function almost as well as a new vehicle.
But what will change the used vehicle sales more than anything else is electric vehicles. Unlike their gasoline counterparts, electric vehicles have one main drawback: their batteries. Batteries age with time, meaning that all EV owners will need a complete battery overhaul at some point in the car’s lifetime.
Granted, some claim that this replacement may not need to happen for many years. But as the battery ages, capacity decreases. This depletes the car’s functional range, which means it may require a battery replacement sooner than the longest estimates.
Electric vehicles have been mainstream purchases for some years already. In the coming years, we will begin to see “old” electric vehicles. This flood of used electric vehicles will force dealers and other vendors to adapt their operations.
Repair Shops Will Need to Pivot as Maintenance Needs Decline
ICE vehicles require constant maintenance, from everyday oil changes to bigger issues with the transmission. They contain thousands of parts, which is the primary cause of all of these problems. Fortunately–or unfortunately, for some–this headache of regular repairs may be coming to an end.
The benefit of smart car technology extends far beyond intelligent features and climate-friendly energy. These types of vehicles are relatively maintenance-free. There are fewer parts overall, and most of them don’t involve major repair work.
Given how big the car repair market is, this will cause incredible market disruption even in 2023. Soon the days will be gone when repair shops have backlogs of customers to service. EV owners visit less often and require less work to be done when they do.
Further, technicians will need new training to deal with electric vehicles. Supply chains will have to adapt to supplying electric-specific parts.
The big money battery replacements may be the focal point for many auto shops. This is a costly and labor-intensive job. It may well become what allows auto shops to maintain their profits as their income from ICE vehicles declines.
Electric Freight Vehicles May Drive Legislative Change
Electric vehicles are also taking the world of heavy transport by storm. Some experts estimate that as many as 90% of all long-haul truck rigs may run on an automated platform. This will create a massive disruption in the transport industry.
Another issue to consider, though, is the weight of electric vehicles. Pound for pound, electric vehicles weigh significantly more than comparable ICE versions due to the battery. On the surface, this may seem like a non-issue, until you consider how this affects our roads.
Asphalt roads are only designed to carry a certain amount of vehicular weight. Any weight over this threshold contributes to the accelerated degradation of the asphalt. Roads will deteriorate as more and more of the long-haul freight converts to electric.
Weight restrictions on roads will hinder progress, so there’s a good chance the Biden administration may step in. Legislation may raise these weight limits. Roads may need renovation to support this increased load.
Get Maximum ROI From Your Marketing Budget
The automotive industry is at an inflection point thanks to the advent of electric vehicles. Online vehicle purchases, pre-owned electric vehicles, and the transport industry will all be huge changes in 2023. The legislation will have to catch up to prepare our roads, and industries will have to adapt to servicing electric vehicles.
At Accumulate, we want you to generate the most leads possible with your marketing budget. Contact us today to get started on a unique tailored campaign for you.