Outlook 2022: Top 5 automotive trends to watch out in next year

The automotive industry has come a long way since Henry Ford revolutionised vehicle production in the early 20th century. The cars have evolved to not just mere commuting mediums or aspirational luxury products. They have become the need of the hour with the increased focus on smoother mobility. Also, modern-day cars are increasingly becoming more tech devices on wheels rather than vehicles for ferrying passengers or goods.

Also Read : Tata Tigor to BMW iX: Top electric cars that launched in India in 2021

The rampant digitisation of the modern world has penetrated the automotive industry at large. In the last two years, the Covid-19 pandemic and its subsequent effects have changed the face of the mobility industry, gradually shaping up the automobile industry's operations and products as well. With the year 2022 approaching, a whole lot of other changes are expected to shape up the automotive industry.


Here are the top five trends the global automotive industry is expected to witness in the year 2022.

By: HT Auto Desk
| Updated on: 27 Dec 2021, 12:09 PM
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Upcoming cars will see greater implementation of technologies and digitalisation. (HT Auto/Sabyasachi Dasgupta)
Upcoming cars will see greater implementation of technologies and digitalisation.

More EVs on the road

EV companies like Tesla have proven that electric vehicles are well capable of replacing traditional fossil fuel vehicles in the coming decades. Other factors like rising fuel prices, reducing battery prices, narrowing the gap between the upfront cost of EVs and ICE vehicles, tightening emission norms, low cost of ownership for zero-emission vehicles compared to their ICE counterparts, growing general awareness regarding environmental issues are aiding the sales growth of electric vehicles.

Besides the dedicated electric vehicle startups, all the legacy players too are launching their EV offensive with a wide range of e-cars. Electric vehicles are likely to outcompete the traditional ICE vehicles by 2030. Considering that, expect more new electric cars to be launched in 2023, taking the EV share in the global auto industry higher than 2022.


Autonomous cars to see growth

If electric cars are going to see a significant surge in the year 2022, another major change in the industry will be in the autonomous vehicle segment. self-driving technology is finding growing importance and footprint in the auto industry. Several legacy auto manufacturers, mobility startups and tech companies are working on self-driving technology. Expect major improvement in this space and several autonomous vehicles to come into the market in the next year.

This would bring the auto manufacturers and technology companies much closer as both sides would like to work together to develop futuristic technologies, more software features and upgrade operating systems. With the growing demand for self-driving vehicles, it is becoming imperative that the latest technologies are being offered in the new generation of vehicles to appeal to the younger demographic.


More feature-packed cars

Modern cars come with a plethora of features onboard. Be it a mass-market model or a high-value luxury car, new generation cars come loaded with a wide range of features and technologies across different segments like driving aid systems, safety, convenience etc. Modern cars have become a lot more than just a transportation medium. Rather, they have become a means of entertainment for many, with features like streaming video mode and Wi-Fi access etc.

Features like massage seats, heated seats, gaming from the in-car infotainment system, air purification, self-driving, collision prediction are becoming increasingly mainstream. Expect the vehicle manufacturers to increase the number of features on their vehicles in the coming years in an attempt to make their products different from others.


Direct to customer sales

With the increased digitalisation, consumers are being used to the trends of getting goods delivered at their doorstep. While this has become mainstream for consumer goods, groceries etc, large ticket purchases like vehicles too are likely to witness the penetration of this trend in the coming years. several mobility companies have already started offering their products through direct-to-customer to D2C business model.

The greater spike in online sales and the D2C business model is likely to witness a surge in the year 2022. This will result in more and more automobile dealerships switching to digital medium and online sales. Overall, there will be a higher penetration of the hybrid business model in automobile sales. This would eventually reduce the market share for conventional physical dealerships.

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First Published Date: 27 Dec 2021, 12:09 PM IST
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