Drop in car sales, drop in car ownership, rise in car sharing, drop in issuance of driving license, rise in fuel prices, drop in sales of diesel cars, rise in global warming and more explained below.
The global automotive industry is expected to begin a challenging phase in 2019, with OEMs especially facing multiple obstacles all over the world. China faced its first even decline in vehicles sales in over 20 years, the USA market grew marginally, the shockwaves of Brexit and USMCA deal are expected create across global markets and the new US-China trade war. This is expected to play out till 2020 at least with global markets expected to rebound by around 2023.
The automotive industry has evolved significantly over the past decade. Digital technology, change in customer sentiment and economic health have played a vital role in this evolution. OEMs and other key industry players are taking note of this evolution and investing heavily in non-commercial business practices of manufacturing vehicles.
Alternative revenue sources are rapidly taking over the market. Mobility companies such as Uber have grown exponentially over the last few years and established technology companies like Amazon and Microsoft are crunching back-end automotive data. Connected technology has become even more important and fundamental to the advancement of vehicles, bringing in a host of new features and offerings.
Similar to previous years, trends such as declining sedan sales, increasing alternative fuel powertrains especially electric vehicles, and more value-added services in digital retail will continue to remain dominant in the automotive industry. New and alternative forms of vehicle ownership are becoming more popular, especially subscription services and e-powered ride-hailing services.
