Popular European Car Brands: Review and Comparison
07.10.2024
European cars have always been in high demand in the used car market due to their quality, technology,...
In the fast-paced world of automotive innovation, 2023 is set to be a pivotal year. As we shift gears towards a more sustainable future, the way we buy cars and interact with them is poised for a dramatic transformation. This article explores the key trends that are set to redefine the industry, from the rise of electric vehicles to the digital revolution in car buying experiences
The car industry is on the brink of a revolution, with the next year set to bring about substantial changes. As the sector shifts towards a greener future, the way we interact with and utilize cars is set to undergo a significant transformation. This is largely due to the growing popularity of electric vehicles (EVs), which accounted for 15.1% of the UK’s new car market as of December 2022.
The previous year also witnessed advancements in the creation, management, and deployment of automated vehicles (AVs). This progress was facilitated by Shoosmiths, who contributed to the recommendations made by the Law Commission of England and Wales and the Scottish Law Commission in their report on legal reforms for the safe introduction of AVs.
The way we buy cars is evolving. Similar to other consumer-oriented sectors like FMCG and financial services, 2023 may see car manufacturers increasingly adopt direct sales methods, supplementing the traditional indirect routes through distributors.
Significant progress is being made in wireless connectivity, enabling vehicles to communicate with their external environment, other vehicles, and devices within them. This technology is revolutionizing the travel experience, with on-demand features now available – support internet use, entertainment, and even making payments through a vehicle.
Supply chain disruption, particularly around semiconductor shortages and raw materials and minerals for lithium-ion batteries, remains a core issue for the car sector. The transition to electrification is putting particular pressure on the raw materials required for battery manufacturing, and many in the sector are expecting shortages to cause disruption until 2026.
According to a study by McKinsey, the automotive revenue pool could significantly increase and diversify through the adoption of on-demand mobility services and data-driven services. This could create up to $1.5 trillion — or 30% more – in additional revenue potential in 2030 as consumer preferences around using vehicles continue to change.
The future of the automotive industry is undoubtedly electrified, autonomous, shared, and connected. It is an exhilarating, albeit sometimes nerve-wracking, time to be in the automotive industry, as 2023 will undoubtedly see these trends continue.
