The auto industry has had a fairly eventful past few years with COVID-19, the semiconductor chip shortage, and more heavily affecting the beginning of the decade. But we’re slowly seeing the industry slowly but steadily recover, and that’s likely to continue on into next year.
And now with the year nearing its end, it’s time to look forward to the coming year. With 2023 quickly approaching, let’s discuss the five biggest trends to watch out for in the automotive industry in 2023.
1. Increased Inventory of New Models
Alas, the chip shortage is still a problem, even after over two full years. As everyone is well aware, this has caused severe supply chain issues that has resulted in shortages in just about every industry, with the auto industry taking one of the biggest hits of all.
But thankfully, car manufacturers have at least begun to release new models, and as a result, inventory levels have been starting to improve a bit. The biggest trend that we will likely see in 2023 is for increased inventory levels for new cars, and for more models to become readily available to consumers.
This also does come at a bit of a cost, however – major manufacturers have started to increase the prices of their new models, which is likely due to both the rise of manufacturing costs and inflation. Thus, the price increase is being passed directly onto the consumer, for better or for worse.
2. EV Popularity Will Continue to Take Off
Electric vehicles have seen a sharp increase in popularity by consumers, with EV sales hitting an all-time high in 2022. This popularity could likely be attributed to the rise in fuel costs, increased cost of gas-powered cars, and the shortage of vehicles as a whole.
This rise in popularity is showing zero signs of slowing down anytime soon, as more electric car models are continuing to become available. New and unique options are beginning to pop up, the Solo by Electrica Mecchanica which is a single-passenger commuter car that retails for $18,500.
Of course, the lithium ion battery shortage going on will certainly pose some future challenges for manufacturers looking to expand their production levels, but that’s an entirely different issue that we likely won’t see rear its head until several years later down the road.
3. Increased Use of Autonomous Vehicles
Another trend that’s really started taking off in recent years has been autonomous vehicle technology. Mostly seen in brands like Tesla, autonomous vehicles aren’t going away any time soon, and in fact are very likely to grow in popularity in 2023. This is because many more brands are launching self-driving cars, with improved technology that will make them safer, reduce driver fatigue, and be easier to use.
Even autonomous vehicles are going to begin popping up in auto transportation, with Tesla’s Semi launching this month and becoming more available next year. This of course won’t eliminate the need for auto transport drivers, but could help to make their jobs less stressful.
4. Less Consumers Will be able to Afford Cars
One unfortunate side effect of the current recession is that more consumers are beginning to be priced out of the current market. So many different factors, including the increased prices of both new and used cars, rising gas prices, increased APR, and more are causing this problem. This is likely to only get worse going into the new year, as inflation gets worse and interest rates continue to go up.
But on the other hand, there has also been a rise in alternative car ownership models, such as ride-sharing and car sharing. Ride sharing apps like Uber and Lyft remain as popular as ever, and car sharing apps such as ZipCar have also become more popular, and will likely become the primary modes of transportation for many consumers that become priced out of the marketplace.
5. Increased Online Car Sales
Online car sales are the way of the future, with more dealerships and auto auctions beginning to offer their inventory online. This practice has allowed consumers access to a larger selection of vehicles, while also greatly benefiting dealers and auctions by expanding their consumer base to a national level. Online car sales have really become popularized by large companies like Carvana, and we will likely see it to become even bigger in 2023.
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