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The Storylines That Are Likely to Dominate the Auto Industry in 2022

For both automakers and consumers, 2021 was a year to remember, with critical semiconductor chip shortages, major assembly plant shutdowns, soaring car costs, and vacant dealerships. However, there was a boom in electric car sales, as well as a shift away from sedans and toward SUVs and pickup trucks.

So what’s ahead for 2022? According to some sources, it may be more of the same, as dealers struggle to find inventory and consumers face ever-increasing prices. However, if you’re shopping for an electric vehicle, you’ll have a lot more possibilities.

Here are the storylines we think will be most popular this year:

1. There would be more electric vehicles on the road

Electric Vehicle firms such as Tesla have shown us that electric vehicles can easily replace traditional fossil vehicles in the next couple of years. In 2021, the gap between the cost of EVs and ICE vehicles was also closed by a large margin.

Additionally, the sales of EVs were also further boosted by the rise of fuel prices, strict emission regulations, declining battery prices, and the low cost of ownership for zero-emission vehicles in comparison to ICE vehicles. 

Aside from specialist electric car producers, a number of other automakers are starting to produce a variety of electric vehicles. 

Electric vehicles are expected to outperform conventional ICE vehicles by 2030. As a result, by 2023, a slew of new electric automobiles will be available. In 2022, the popularity of electric vehicles will grow even further.

2. Product shortages

As a result of Covid-19, automakers cut output and parts orders. When sales began to recover, however, they discovered they couldn’t secure all of the required chips, resulting in significant production cuts.

Even though goods like chips and automotive fasteners are returning back to the market, the supplies are far from returning to normal and the problem will only continue in 2022. 

Manufacturing cuts can also hurt the industry this year. Worse, additional shortages are negatively affecting the supply of products like tires, interior plastics, and seat foams.

3. Autonomous vehicles would rise in popularity

The autonomous vehicle sector is another sector that could experience a shift in popularity as the sale of electric cars experience growth in 2022. 

The growth of self-driving technology is increasing in popularity and importance in the auto industry. Self-driving technology is being developed by various manufacturers and tech firms. You should be on the lookout for significant advancement this year with several autonomous cars expected to break into the market.

This would bring automakers and technology businesses closer together, as both would desire to collaborate on developing futuristic technologies, additional software features, and operating system upgrades. 

With the increased demand for self-driving vehicles, it’s becoming more important than ever to include the most cutting-edge technologies in the next generation of automobiles in order to appeal to a younger market.

4. Cars with more features

A vast range of features is one thing that modern automobiles have in abundance. Whether it’s a premium vehicle or a popular model, the current generation of automobiles offers a wide range of features and technologies, ranging from driver aid systems to safety and convenience. This trend is expected to continue in 2022.

To the joy of clients, modern automobiles have progressed from being only a mode of transportation to having interesting possibilities. In today’s vehicles, passengers can watch films and connect to the internet via WiFi. 

Automobile manufacturers are expected to add even more amenities to their vehicles this year in order to keep ahead of the competition.

5. Direct Sales to clients 

One of the most popular activities that have evolved over the years is the delivery of products to the doorstep of customers. This is a result of digitalization. 

As this has become a common practice for consumer products like groceries, the automobile industry is also likely to join the train in the coming years. 

Already, some automobile companies have begun to supply their merchandise through the direct-to-customer (D2C) model. The automobile industry is expected to embrace the D2C business model which would lead to an increase in online sales.

As a result, the hybrid business model would have a greater influence on automotive sales which would gradually reduce the market share of traditional physical dealerships

6. Startups will continue to upend the status quo

Since World War II, the automotive sector has been mostly closed to outsiders, but Tesla has shown that it is feasible to break the code. 

Other start-ups are now vying for a piece of the pie. Several of the most promising players have been rewarded by Wall Street. Rivian currently has a market capitalization of more than $90 billion, surpassing both Ford and General Motors. 

Others, such as Byton, Lordstown Motors, and Faraday Future, are in trouble and may go out of business in 2022.

7. China gets closer 

Although China has the world’s largest auto market, homegrown automakers such as Geely and Great Wall aim to expand beyond its borders. 

However, attempts to reach the United States, the world’s second-largest market, have been continually postponed. Under President Joe Biden, trade tensions that arose under former President Donald Trump have yet to be resolved. 

While a few Chinese-made vehicles, such as the Cadillac CT6 Plug-in Hybrid and the Volvo S90, are accessible in American dealerships, It could be years before we see a major automotive invasion.

Parting Gift 

Measures need to also be put in place to manage the shortage of products in the industry. 

The year 2022 is shaping up to be an interesting one for the automobile industry. 

Once again, electric and driverless vehicles are expected to be the industry’s showpiece product. However, while the sector’s success is virtually assured, manufacturers, stakeholders, and the supply chain must work together to ensure that customers are once again satisfied with the automobile industry.

Do well to select the best fastener supplier to address the industry’s product shortfall. When everyone works hand in hand, 2022 would be another fantastic year for the automobile industry.

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