Trends and challenges for the automotive industry


To call 2020 a year of havoc would be an absolute understatement. We have witnessed the very drastic changes in 2020, and we need to start looking at trends that will take hold this year. As for the automotive industry, every part of it will face strong winds in 2021 and will need to adapt to new market realities quickly. Other needs go beyond the global crisis and will need to be addressed and responded to.

Alternative fuel vehicles have become one of the biggest challenges after new regulations being imposed. Car manufacturers can no longer afford to ignore alternative fuels. They will have to make substantial efforts to meet the demand for fuel-efficient vehicles and vehicles that do not use fuel at all. A stream of information on new automotive technologies and the impact of fossil fuels on the planet is published daily. This debate will not fade away any time soon and will continue to grow over the next decade. The point, however, is the lack of opportunity. Biofuels are not yet mass-produced. Solar infrastructure is not strong enough to meet everyone’s needs and make solar cars a reality. The industry will have to face the growing demand and limitations of the AFV application, along with the ever-increasing public pressure.

We can also expect a rise in demand from independent motor vehicle dealers. Although in 2020 the demand for new vehicles was higher than expected, this year we should see a slight decline in the market. This would also be the right time to start a business as an independent car dealer.

Talking about the number of units in terms of production, China is now the world’s largest automotive market. The challenge for carmakers here will be whether they should consider entering the market and try to compete. There is increased pressure in the country to reduce pollution, and the car market there is extremely competitive. Car manufacturers will have to decide whether the risk is worth it or whether they need to focus on domestic demand.

So these were a few trends and challenges that the automotive sector is likely to face either immediately or sooner than anticipated. Although the future is unpredictable, some will certainly come true and could change the industry as we know it forever. However, we all need to hold on to the trends and run along with time if we require our startups and companies to thrive.


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