Key Predictions for the Automotive Industry in 2023
Last year, the car and automobile manufacturing market in the US was worth more than $100 billion. The automotive sector is one of the biggest in the United States, although it has taken a hit in recent years.
Factors such as the COVID-19 pandemic, supply chain issues, and the Russia-Ukraine conflict have had impacts on production and sales. Yet, if you’re in the market for a new vehicle, now might be a great time to buy.
Here’s what you need to know about trends and what’s coming in 2023 for cars.
Vehicle Affordability Still Presents Challenges
There’s still talk of a possible recession this year, but there seem to be opposing views on the timing and severity. Factors such as high inflation are hitting many American families hard.
Thankfully, if you need a new vehicle, you have options. Buying used is one way to save during this time, and you’ll still find plenty of quality vehicles on the market. Wholesale pricing for used cars is expected to fall again as rates get closer to pre-pandemic rates.
You can apply for financing to create manageable payments. This is a great option if you don’t have the funds to buy a vehicle in cash.
The Year of Electric Vehicle Improvements
Expect the automotive industry to focus on basic performance upgrades for electric vehicles. Consumers tend to hold back on purchasing EVs until there are more upgrades in terms of range or decreased prices.
Experts also predict that there will be more incentives for businesses to make the switch. Some companies will likely incorporate EVs into their fleets thanks to electric vehicle tax credits and other incentives.
Compared to 2020, sales almost doubled in 2021 to 6.6 million. That’s roughly 16.5 million electric vehicles on the road.
Making upgrades to battery efficiency and adding more EV charging stations will help expedite the switch.
Vehicle Trends: Connected Cars
Connected cars are vehicles that can “communicate” with other software systems using short-range radio signals. These cars collect data from your surroundings, such as a vehicle on the side of the road up ahead that could be a potential traffic hazard or drivers running red lights.
The hope is that connected cars will reduce accidents and prevent fatalities on roads and highways. This technology has a significant advantage over other vehicle sensors and warning systems because it doesn’t rely on line-of-sight communication.
So, one of our 2023 automotive predictions is that we’ll see more of this technology being implemented in newer models.
More Online Research
Many consumers spend a great deal of time researching before even visiting the dealership. That’s not a trend that’ll end anytime soon.
Many people look up the latest new car guide for any models they’re interested in, reading about the pros and cons. They stay updated with the latest auto industry news, learning about trends and safety features.
As a result, buyers arrive at a dealership with a better idea of what they want and how much they’re willing to pay.
The Future of the Automotive Sector
Now that you’ve read our predictions for the automotive sector for the year, you have a better idea of what to expect. Now is a great time to buy a vehicle, whether you’re planning on getting a new model or a used car.
Here at Red McCombs, our motto is “Driven to Serve,” so we can’t wait to help you find your next favorite car, truck, or SUV. Shop our wide selection of new vehicles to find some amazing deals on your favorite brands, and then visit our dealership!