While 2018 is already posing challenges to some industries, others such as automotive industry are beginning to boom. The auto industry closed out 2017 with a sales decline, which is its first sales decline over the past seven years despite the presence of solid and reliable cars like the Nissan Altima. Here are the top trends that will define how carmakers and drivers will respond to changes in the auto industry.
Ride Sharing
The age of taxis will soon be over. Ride-sharing platforms such as Lyft and Uber
have already gained more market share than taxi cabs. Trends in the automotive
industry show that ride-sharing services are decimating taxi cabs. However,
ride-sharing services aren't a significant trend for auto dealerships. After all,
Uber and Lyft compete with taxi cabs directly; therefore, auto dealers aren't
worried about this technological shift.
have already gained more market share than taxi cabs. Trends in the automotive
industry show that ride-sharing services are decimating taxi cabs. However,
ride-sharing services aren't a significant trend for auto dealerships. After all,
Uber and Lyft compete with taxi cabs directly; therefore, auto dealers aren't
worried about this technological shift.
However, the massive growth of ride-sharing services has skyrocketed expenses
of urban dwellers. It has always been expensive and difficult for young professionals
to own a car in a metropolitan city. Nonetheless, buying a car has become less
justifiable due to the growing expenses of living in the urban areas.
of urban dwellers. It has always been expensive and difficult for young professionals
to own a car in a metropolitan city. Nonetheless, buying a car has become less
justifiable due to the growing expenses of living in the urban areas.
In fact, these demographics may soon start to move to the suburbs. Student
debt and economic uncertainty have delayed this trend. Car dealerships will
have to weather a few years of financial hardship during which ride-sharing services
will disrupt car buying. However, that doesn't mean auto manufacturers should ignore
ride-sharing and hope that it stops to disrupt the automotive industry. It's time for car
dealers to offer incentives and tap into ride-sharing technology. That way, it will be
easier to create long-term relationships with customers whose vehicles will need
upgrade and maintenance.
debt and economic uncertainty have delayed this trend. Car dealerships will
have to weather a few years of financial hardship during which ride-sharing services
will disrupt car buying. However, that doesn't mean auto manufacturers should ignore
ride-sharing and hope that it stops to disrupt the automotive industry. It's time for car
dealers to offer incentives and tap into ride-sharing technology. That way, it will be
easier to create long-term relationships with customers whose vehicles will need
upgrade and maintenance.
Electric Vehicles
The rapid growth of electric vehicles will start to disrupt the auto industry. Electric
vehicle sales continued to grow even as overall auto sales declined for the first
time in seven years. Electric cars are expected to increase and probably dominate
the entire auto market. Nearly all car manufacturers including Nissan and Toyota
have already enrolled electric vehicle initiatives in response to this trend. Automakers
are determined to eliminate fuel-burning vehicles with mid-size cars as
environmentalists advocate for green cars. In fact, nations such as France and
Britain are set to ban gas-powered automobiles a few years ahead. Dealerships
will have to prepare to design electric engines to retain market relevance. In fact,
electric cars might soon be the only vehicles on the market.
vehicle sales continued to grow even as overall auto sales declined for the first
time in seven years. Electric cars are expected to increase and probably dominate
the entire auto market. Nearly all car manufacturers including Nissan and Toyota
have already enrolled electric vehicle initiatives in response to this trend. Automakers
are determined to eliminate fuel-burning vehicles with mid-size cars as
environmentalists advocate for green cars. In fact, nations such as France and
Britain are set to ban gas-powered automobiles a few years ahead. Dealerships
will have to prepare to design electric engines to retain market relevance. In fact,
electric cars might soon be the only vehicles on the market.
Autonomous Vehicles
Autonomous cars might take more time to hit the roads, but they are a trend worth
to watch in 2018. They will increase passenger comfort, reduce accidents, and
improve traffic management. After Uber and Google, other automotive companies
will launch their variants of driverless cars in 2018. In fact, driverless cars will be one
of the top concerns of future automakers.
to watch in 2018. They will increase passenger comfort, reduce accidents, and
improve traffic management. After Uber and Google, other automotive companies
will launch their variants of driverless cars in 2018. In fact, driverless cars will be one
of the top concerns of future automakers.
Cloud-Powered Automotive Industry
A string of automakers has already shifted to cloud technology. Cloud computing
has transformed the entire automotive industry ranging from designs to operations
and physical systems servicing. Cloud technology makes it easier to scale different
services and processes. That helps eliminate wastage and reduce production costs.
More and more automakers will launch initiatives to integrate their engineering technology
with the cloud.
has transformed the entire automotive industry ranging from designs to operations
and physical systems servicing. Cloud technology makes it easier to scale different
services and processes. That helps eliminate wastage and reduce production costs.
More and more automakers will launch initiatives to integrate their engineering technology
with the cloud.
Customer-Centric Services
Top e-commerce websites such as Amazon and Tesla are setting records every year
when it comes to enhancing the customer experience. Customers are looking for
convenience and improved shopping experience wherever an opportunity arises.
While this trend has been around for years, it's becoming fundamental to automakers.
when it comes to enhancing the customer experience. Customers are looking for
convenience and improved shopping experience wherever an opportunity arises.
While this trend has been around for years, it's becoming fundamental to automakers.
Customers around the world are yearning for a better dealership experience. In fact,
61% of Americans feel that car dealers take advantage of them and 87% disregard
buying cars at dealerships.
61% of Americans feel that car dealers take advantage of them and 87% disregard
buying cars at dealerships.
Most customers believe that car dealers don't meet their customer experience
expectations. However, more customers are willing to visit any car dealership that
has a streamlined buying process. That means car dealerships are missing out on
a lot of opportunities by diverting their attention away from the improved customer
experience.
expectations. However, more customers are willing to visit any car dealership that
has a streamlined buying process. That means car dealerships are missing out on
a lot of opportunities by diverting their attention away from the improved customer
experience.
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