What to Expect from the Automotive Market
12/18/2022, Tallinn // KISS PR Brand Story PressWire //
The aftermath of the devastating blow in 2019 is still painfully obvious as the industry struggles to get back up. We can see major shifts happening in its structure. The supply chains and decreased demand slowed down the manufacturing and new car sales pace. And forecasts by Cox Automotive remained moderately positive, indicating some sales steadiness in roughly 1.10 million units per month which is still far from the pre-pandemic levels.
To protect themselves from more disruptions, manufacturers tend to invest in localization and countermeasures. Another growing part of their expenses is EV development, as the world slowly but steadily shifts toward alternative fuels and eco-friendly technologies.
However, the true tide bringers are the customers. They create the demand for electric vehicles, and they influence sales. Unfortunately, most people are also recovering from the financial shocks of recent years and are preparing for more to come in the nearest future.
All the above inevitably leads to noticeable shifts in the shares of different new vehicle market segments. The luxury cars will most likely feel less affected by the turbulence in a bad way, while the demand for more affordable cars might lower.
Aftermarket Car Parts Market Trends
When new vehicle sales grow less active, the used vehicles market and maintenance will see more customers. Researchers like Mordor Intelligence have optimistic forecasts on the aftermarket wheels and rims market and expect the CAGR to reach 8.2% by 2027 since more people will go for replacement wheels, fitting lug nuts and tires.
Two existing trends contribute to this now. The first one is a growing demand for aftermarket wheels meant for luxury vehicles. Customers further reinforce this trend by growing more competent in the field and having a passion for fitting customized wheels. The second one is not so fun. Due to lower income and growing rates, people tend to postpone buying new vehicles and instead stick to routine maintenance and repairs.
Tire Industry Trends
The demand for tires is expected to increase by 2027, though experts assume it will be slower than the wheels and rims market and reach a CAGR of 7.53%. The need for improved safety is still strong, and both car manufacturers and customers alike are ready to put their money into upgrading automotive tires.
A previously mentioned tendency to opt for routine maintenance instead of buying new cars only adds to the existing replacement demand. Poor tire condition can have a devastating effect on fuel efficiency. Hence, more car owners will want to improve their vehicle’s performance by getting new lighter tires. And the wheel customization trend can also contribute to overall sales.
How Growing EV Popularity Influences the Market
Besides shifting the focus to developing new ways to build more sustainable and efficient electric vehicles to meet the demand, this trend also changed the aftermarket components industry. Sooner or later, the EVs will need performance parts, replacement wheels, and other equipment to stay popular.
The greatest EV weakness performance vise is their range. And while vehicle manufacturing companies work on improving it on a larger scale, the aftermarket industry is looking for smaller-scale solutions for EV enthusiasts.
For instance, the amount of different electronic components inside modern cars already has a negative effect on their weight. And increased weight impacts gas mileage in ICE vehicles or range in EVs. This creates a chance for the aftermarket tires and rims manufacturers to come up with even lighter options to compensate for the weight of other elements.
The Mckinsey Mobility Centre already forecasts that ICE vehicle parts like engines, fuel pumps and other specific parts will lose around 15% of their current market size by 2030 compared to 2019.
So, unfortunately for us, we live in times of big and rapid changes. It can be difficult, but there are still many wonderful things to expect from the automotive market in the years to come.
Release ID: 469086
Original Source of the original story >> What to Expect from the Automotive Market
This content is published on behalf of the above source. Please contact them directly for any concern related to the above.
This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.