It all depends on how to see the current automotive trends in 2019. Few would have a wow factor in it and few others will seem nothing more than woes. With such a confusing mix, it is required that you spot the right trend.
Last year, all automobile manufacturers across the world faced the challenge in auto sales as expected by the experts. The global auto sales report showed a few interesting and a few alarming facts such as:
- The passenger vehicle sale on a global scale was limping and showed just a marginal increase in the number as compared to that of 2018 as it reached just a bit more than 400,000 units.
- It also showed that there was a seemingly unstoppable rise in the mobility services and by the year-end, there were five top ride-hailing companies namely Uber, DIDI, Lyft, Grab and Go-Jek.
- The estimated value of these mobility services were well over $230 billion.
- In addition to that, the report also predicted that there will also be a significant rise in the value-added services in automobile retail.
All these facts indicate a few other things. On one hand, it signifies that the software technology companies are making further inroads into the automobile industry through different types of services such as:
- Usage-based insurance
- New financing services
- Leasing services and
- Connected car services.
On the other hand, the facts and findings signify that the automotive companies have enhanced and expanded their after-sales services to keep their customers satisfied and engaged. They have also focused more on providing a better, faster and less expensive solution to their customers.
While both of these may seem very promising to you and you may even want to invest in a vehicle but be informed that these wows can soon turn out to be the woes of the automobile companies this year.
Therefore, just as you would read the reviews to the know the pros and cons of each available options to select the best debt relief option, tarry a little and go through the bigger picture to make out whether such an investment is worth it in the current market scenario.
The bigger picture
Considering all good and bad of it, 2019 will witness a lot of changes and tumbling in the automobile industry.
For the good, it can be said that automobile technologies will be more fresh, innovative and exciting but on the other hand, there are lots of uncertainties in it, courtesy several factors such as:
- The United States-Mexico-Canada Agreement, USMCA
- Brexit and
- The fact that China backing off the growth accelerator.
All three being the largest markets, it will seriously pose a threat on the growth accelerator of the auto industry, throwing a ‘spoke in the wheel’ so to speak. It will have some serious and significant effect on the automobile industry on the whole and across the whole world such as:
- A lot of automobile giants will experience a fall
- A few in this auto segment will even face near extinction
- It will put the long defined popular vision of the automotive industry to an end and
- It will also result in the windfall for the giants of newfangled mobility.
In addition to all these significant effects, there will be much, much more technology-focused disruptions.
Internet Of Things:
IoT, as it is popularly called, Internet of things along with Artificial Intelligence will unleash a new era of transformation and this will continue throughout this year and those to come. This is expected to revolutionize the automobile sector. This is because it is expected to drive unexpected and unprecedented transformations across different areas such as:
- Autonomous driving
- Vehicle and device connectivity
- Electric powertrains and
- Shared mobility.
This means, your car will now become more like your mini-office and have all modern gadgets along with an in-vehicle Personal Digital Assistant that will make driving safer, less fraught and more productive to provide a better experience.
Few other effects
There are a few other significant effects noticed in the automobile industry such as:
- After experiencing immense growth in sales for over a decade, the Chinese automobile market seems to be experiencing a decline, starting in 2018. There can be several reasons to it such as a slowing economy, the continual acceptance of public transportation, the growing popularity of shared mobility modes, and a progressively saturated SUV market that has clipped the wings of the Chinese dragon.
- Another significant effect is the ride-hailing IPOs going supersize and there are a few more mega-blockbusters coming in 2019. This has resulted in the well-established car companies take a serious beating in valuations.
- With public-private relationships on the rise, the future of mobility services is expected to go multimodal as well. This is reinforced by data analytics and Big Data that will provide more powerful, flexible, resource-efficient, and on-demand multimodal mobility solutions. Mixed with the new policies and initiatives it will promote, streamline and sustain urban transportation. Therefore, expect more white-label ride planning apps in 2019 for both travellers and B2B at the same time.
- You can expect a more connected environment with the connected vehicle ecosystem on the rise that has features on-demand such as powertrains, advanced driver assistance systems, connected services, smart interiors, and more.
- The car will become more of a marketplace this year and passengers will not have to move from the comfort of their car. From within their car, they can access to a whole lot of contextual services on demand that includes parking, fuel payments, food ordering, hotel bookings, restaurant reservations, alerts on offers, and navigation.
- The dream of autonomous shuttles and taxis will become a reality in 2019 as well just as you may have seen in those sci-fi films. The day is not far when you will see even a self-flying taxi plying with passengers in it and everything automated. Therefore, expect autonomous shared transportation very soon.
Wow! But time will tell when it changes to woes. It may be 2019 or a few years down the road.