The automotive industry is rapidly evolving. From generative AI affecting vehicle design, navigation and voice assistants to Level 4 autonomous cars becoming more mainstream – this industry is experiencing massive change.
While product income remains elevated and finance reserve low, auto buyers have begun returning to dealerships as inventory levels stabilize. Here are 10 important auto industry trends to watch in 2024.
1. Electric Vehicles
Sales of electric vehicles are expected to experience fast-paced expansion. Yet achieving price parity with conventional internal combustion engine (ICE) vehicles remains a significant challenge for the industry.
Electric vehicles (EVs) contain far fewer parts than internal combustion engine (ICE) cars, making them far simpler and cheaper to maintain – which will further fuel growth in 2024. This should translate into lower maintenance costs as well as increased reliability.
2. Mobility as a Service
Auto manufacturers are ramping up EV production to meet rising consumer demand; however, a lack of chips could stifle growth by 2024.
Pandemic flu put a wrench into auto sales, but they should return to pre-pandemic levels this year as affordability and inventory improve.
Leasing will become more prevalent as dealership inventory recovers, as it offers consumers convenience, improved features and safety.
3. Resilient Supply Chains
By 2024, existing supply chain issues with new and used vehicle inventory should have stabilized, alleviating some dealership concerns over providing timely deliveries for car buyers.
Additionally, the increasing adoption of electric vehicles (EVs) among eco-conscious customers makes them attractive options for manufacturers looking to reduce their carbon footprint.
4. Sustainability
Pandemic-driven manufacturing pause reduced car production significantly and revealed years-old supply chain issues to be at play, such as microchip shortages or high auto loan rates – something the industry will continue to face challenges from in 2024 onward.
Leasing has become an increasingly popular option for consumers looking for a faster, easier and more cost-effective means of entering the driving world. Dealerships should consider strengthening their lease programs to meet this demand.
5. Connectivity
Car prices remain elevated despite an expected return to “normalcy” in 2024 for the auto industry, yet inventory issues for dealerships should begin settling this year.
As 5G and IoT connectivity expands, vehicles can now do more than simply collect albums like Taylor Swift. They can transmit information such as automatic maintenance notifications or dynamic traffic reports.
6. Influencer Marketing
Influencer marketing gives automakers an excellent way to connect with like-minded content creators. Fashion influencers are ideal for elevating brand image and drawing younger consumers in, while outdoor/adventure influencers showcase vehicles’ versatility and durability.
As customers increasingly move from showroom to digital platforms, automakers must develop effective strategies to engage and captivate them. KORTX’s Conversion API and First-Party data solutions offer robust alternatives in this cookie-less world.
7. Social Media
COVID-19’s pandemic-driven manufacturing pause in 2020 reduced vehicle production while simultaneously addressing long-standing supply chain issues. Although ongoing obstacles such as microchip shortages and an absence of automotive technicians persist, car production should soon return to pre-pandemic levels.
Generative AI is revolutionizing the auto industry, impacting vehicle design, navigation, predictive maintenance and voice assistants. Discover how this cutting-edge technology can help your dealership better serve customers.
8. Mobility as a Service (MaaS)
MaaS offers mobility services that enable consumers to easily access transportation options that fit their unique requirements, which in turn reduce traffic congestion, transport costs, and promote environmental sustainability.
MaaS can also encourage a shift from private cars to public and shared transportation options, which reduce carbon emissions, traffic congestion and parking pressure, as well as increase urban livability.