Breakdown Or Back On The Track, Auto Sector?

Ankit Saluja Jan 28, 2021

Is Automobile Industry back on the track after a bumpy ride? What are the trends that the auto sector has seen during 2020? What is being expected by them in 2021?

After unpredicted pandemic disruptions and dampening automobile industries had went off track and year 2021 is battered and loaded with hopes of recovery, it would be excited to see weather the car of automobile sector come back on the track or fingers crossed! According to the sources “Passenger vehicle sales in India, the barometer of the automobile industry's performance, plunged 78.43 per cent in the April-June period this year hit by the pandemic, declining for the ninth straight quarter and making it the longest slowdown in 20 years.” This is the need of an hour, as we are heading towards year 2021 new flowers of hope are blooming steadily which can be seen in the following areas:

The revival of the preowned car market The pre-owned expensive car merchandise has emerged as a spurt catalyst for the industry of automobiles. The global used car market showing serene roar of lion over circumstances of year’20 due to COVID-19 and the subsequent market realignment in 2021. Currently, the graph of used car market is showing ramp-up shape recovery after a bumpy uneven road. The upcoming demand for BEVs and PHEVs is set to grow six times over the next six years. Online transactions part or full payment poised to boom in the sales on the other hand transparency, reliability and trust is essential to succeed in online used car market. The biggest advantage of buying a pre-owned expensive car is that the first owner takes a big depreciation hit. The audience of fanatic car looks for style and performance at a convenient package, theyget spend their love on pre loved luxury cars including Audi, BMW, Mercedes, Jaguar, Land Rover, Rolls Royce, Bentley Honda and many more brands.

AI-based autonomous vehicle

AI-based autonomous vehicles are the frontrunners in the industry of automobiles. Artificial intelligence has already taken the technological advancement onto level-up now in the sector of cars by enabling self-driven cars. These cars do not require drivers and rely on sensors and software for navigation and control. Its main agenda is to reduce human drivers and make transportation easier and safer.

Two-tyre world economy

After COVID-19 the robust of change in preference of people for personal vehicles over public and shared mobility in light of safety concerns is leading automobile industry to pinnacle in the short period of time.

Digital boom

With the accelerated digitisation of the world, the automotive industry is gearing up to an enormous change in 2021.The lack of physical stores allows consumers to opt safe and easy mode for purchase. Digitisation has underpinned the emergence of digital retail as a major revenue stream opportunity for the automotive industry.

IoT platform

Software-based vehicles are evolving to excel the range of software-over-the-air (SOTA) and firmware-over-the-air (FOTA) enhancements which allowstremendous transitions within the vehicle, this includes the new-age connected car Internet of Things (IoT) platforms such as the in-car marketplace and Feature-On-Demand (FoD), which allow customers to make use of both mobility and personal retail services inside the car and the most important lease is on their own convenience.

Electrification

Fossil fuel consumption is rapidly increasing day by day and causing harm to the environment.To prevent this harm or loss automotive industry switching to electric vehicles (EVs). Cars contribute to 15% of carbon emissions, which depletes precious fossil fuel reserves and causes potential irreversible environmental damage. To protect the environment world is switching towards electrification.

Blockchain

Blockchainis directly hooked to the internet. It is transforming the ways of organisation’s processes which is anticipated to increase the retail ain the upcoming year by ride hailing, urban transportation and home deliveries.

3D printing

Demand of 3D printing is growing in the market which adds personal touch of consumer and more love to their partner cum vehicle. To optimise the production and quality makers are meeting with the challenges in the field of 3D painting. Automobile industry provides multiple options for the smart consumers of 21st century.

Spurt in subscription service Vehicle subscription represents underlined trend for 2021. On the demand side, its popularity is hiking by duration flexibility, short-term commitment, swapping at no additional cost, monetised by lease providers. Solution of reused car made it more affordable to appeal to a wider customerbase.

Car mirrors health Automakers are becoming more conscious to deliver not only in terms of technological advancement in sector but also to accelerate health, speed up wellness and stress-free well-being. AI ensures health and comfort to your pocket and mind.

Hopefully year 2021 is going to recover the loss with new opportunity for the preowned car market such as digital, Iot platform and much more.