Many expected the auto industry to mount a post-pandemic rebound in 2021, but that didn’t happen. Search volume for “Infineon Technologies” has seen modest growth over the past 5 years. Infineon, the largest manufacturer of auto chips, is increasing its investment in production by nearly $1 billion euros in 2022. All of this puts the auto industry at the back of the line when it comes to receiving chips. Now, 94% of consumers check the manufacturer’s website for product information before purchasing a part.
Sustainability, regulations, and supply chain challenges in automotive manufacturing
The EU’s Green Deal and its accompanying “Fit for 55” initiative aim to cut carbon emissions drastically by 2030, piling new expectations on manufacturers to reduce their environmental impact. Adding to the challenge, measures such as stricter Euro 7 tailpipe standards and updated rules on battery recycling demand deeper innovation within supply chains and operations. The global automotive industry, responsible for 10% of the world’s carbon dioxide emissions, faces ongoing pressure to overhaul its practices. However, the landscape is proving difficult to steady with an intricate maze of regulations that differ by country or region and lack a unified benchmarking process for sustainability.
Top 10 Global Automotive Industry Trends in 2025
This report explores the top 10 electric vehicle trends shaping the industry in 2026. Discover how these shifts improve charging, safety, and sustainability and what they mean for your business. Furthermore, the need for EV charging stations is no longer a challenge to the electric vehicle market. While it’s true that at the end of 2023, there wasn’t an adequate supply of electric mobility hubs, the charging infrastructure in Europe has improved drastically. Currently, there are about 750,000 public charging stations with a combined 28.7 GW of charging capacity. Notably, China, Europe, and the US have established themselves as the leading EV markets, with other countries following suit.
consumer trends
Its RC ONE driverless vehicle combines proprietary software and hardware with automotive-grade components to achieve low-speed autonomous operation. The sensor integrates chip-level innovations that reduce power consumption, simplify hardware complexity, and enable performance through a modular architecture. This design ensures durability, compact packaging, and flexible vehicle integration. Chinese startup Chipv offers automotive semiconductors that combine computing capabilities with motor control and power management.
The Future of Automobiles
The new year will also witness L4 implementation, with companies like Baidu, Pony.ai, and WeRide conducting extensive road tests across various cities. Initiatives and support from the Chinese government, such as pilot zones and regulatory frameworks, are further accelerating the process. OEMs are advancing and navigating regulatory challenges to introduce and test L3 and L4 automation, setting the background for augmented adoption of autonomous vehicles. The used car market is also expected to become more important for consumers looking for cheaper EVs, which typically face greater levels of depreciation than internal combustion engine vehicles.
- Power say that sales of cars worth more than $100k were outselling lower-priced cars 3 to 1 in the first quarter of 2022.
- As the industry advances, 2025 will be a defining year in the automotive manufacturing sector.
- Cybersecurity protects these connected systems, while regenerative braking and sustainable manufacturing practices reduce the environmental impact.
- To understand AI’s impact on the automotive industry, it is important to consider the ongoing shifts across the automotive landscape, especially the transition toward software-defined vehicles.
- Its system uses functional modules, combining LiDAR, radar, cameras, and ultrasonic sensors to perceive surroundings, analyze traffic, and navigate efficiently.
This is fueled by increased vehicle production and sales in China, Japan, and South Korea. The AV market is projected to reach USD 1.73 trillion by 2033, growing at a CAGR of 31.85% from 2025 to 2033. Automakers are investing in cybersecurity technologies such as hardware security modules (HSMs), AI-based intrusion detection systems, and secure over-the-air (OTA) updates to address these challenges. Automotive Manufacturing Solutions (AMS) is the essential resource for automotive manufacturing professionals and suppliers globally. We invite you to revisit these top stories, share your perspectives, and stay tuned for more in-depth coverage of the trends shaping the automotive world. Looking ahead, JLR’s focus on carbon-neutral manufacturing and environmentally responsible practices sets a powerful example for the industry.
Important Auto Industry Trends (2025-
The Wall Street Journal reports that dealerships have been known to charge $40k above MSRP on luxury cars. In some cases, car dealerships are charging huge markups on the inventory they do have. Even six months into 2022, vehicle manufacturers haven’t been able to correct the issue of low inventory. Reports from 2022 showed vehicle inventory was stagnant, sitting between 1 million and 1.1 million vehicles, for the first six months of the year. Sales of passenger cars were down 25% in the first half of 2022 compared to the same period in 2021.
The rising role of renewable energy supply in automotive production
The study offers data-based insights and recommendations for action for decision-makers in the automotive sector. Gain in-depth insights into the key developments that characterise the automotive industry. UK-based startup Distributed Additive Manufacturing (DAM) offers 3D printing services including design, building, and finishing of parts.
What are the predicted future trends in the automotive industry regarding autonomous driving?
Virtual car shopping is the new norm and will remain a significant car industry trend for years. The booming e-commerce industry is essential to the global online car buying demand. This is further fueled by increasing awareness of convenience and supported guide to choosing cars for wet roads by rising digital literacy, internet accessibility, urbanization, and disposable income levels.
Due to these advancements, the global automotive IoT market is anticipated to reach USD 56 billion by 2026 at a CAGR of 19% during the period from 2021 to 2026. It also uses regenerative braking to capture and store energy in the car’s battery. The APH-01 incorporates flax fiber in its body shell, which reduces weight, increases impact resistance, and improves vibration damping. In addition to enhancing energy efficiency, regenerative braking systems reduce greenhouse gas emissions by recovering energy during braking to support global efforts to meet stricter emission norms. Keyvault raised USD 1 million in January 2025 to introduce smartphone-enabled car keys in the US, following the trend of incorporating smart device features into automobiles.
Artificial Intelligence in the Automotive Industry
- Additionally, blockchain is instrumental in verifying the supply chain of automotive parts, ensuring that materials and components are sourced from legal and trustworthy suppliers.
- Let’s embark on this journey together, where ‘driving the future’ is more than just empty rhetoric.
- The new year will also witness L4 implementation, with companies like Baidu, Pony.ai, and WeRide conducting extensive road tests across various cities.
- With established automakers facing nimble startups in the mobility race, building new businesses should be a priority for auto executives.
- The U.S. and China trade war has also influenced the search for alternative sourcing options.
- Contact us today to make critical data-driven decisions, prompting accelerated business expansion and breakthrough performance.
It uses AI-powered damage recognition, estimation, and work distribution to streamline repair processes. Also, its platform manages claims and mechanical breakdowns across vehicle models from manufacturers. Digital replicas and simulations allow manufacturers to test efficiency improvements before implementation. For example, BMW’s San Luis Potosí facility applies digital replicas to reconfigure layouts and minimize waste.
IONT tech specializes in EV Charging Solutions
UK-based startup Electric Car Converts changes classic Land Rovers into EVs by replacing combustion engines with modern electric motors and battery packs. Ultra-fast charging infrastructure minimizes downtime by offering hundreds of kilometers of range in just minutes. For example, BYD demonstrated a 1000 kW charging system that is capable of adding about 400 km of range in five minutes to its Han L and Tang L models under ideal conditions.
What are the Top 10 Trends & Innovations in Automotive ( ?
The Tree Map below illustrates the top 10 automotive trends that will impact companies in 2024. Emerging companies are working to build the first fully autonomous vehicle for city roads, which in turn accelerates the advancements in-vehicle connectivity and IoT. Major automakers, such as General Motors, are expanding telematics offerings by integrating subscription-based services like OnStar as standard features across models.
Issues such as liability in the event of an accident, cybersecurity measures to prevent hacking, and how to deal with AVs in mixed-traffic environments (with human drivers) will need to be addressed. One critical challenge in transitioning to electric mobility is the availability and accessibility of charging infrastructure. By 2025, significant investments in fast-charging networks will be essential for EV adoption to reach mass-market penetration.
As per the traditional method, we used to visit the dealer and purchase vehicles from him, and the dealer used to make transactions with OEMs. However, as per the new Agency model, we will get to see that the people would directly be dealing with the OEMs and the dealer’s profit would be shared by OEMs. That will enhance in gaining the trust of society and the brand’s potential customers. Consumers thoroughly research their preferred car on their mobile phones, searching for the best offers and dealerships in their area. Therefore, websites must be easily readable and accessible on mobile devices, with clear calls to action. Brands provide specific offers by analyzing your needs, preferences, and behavior.
- Its solution, carSECURITY, provides organizations with a complete cybersecurity process landscape.
- These innovations represent the brand’s commitment to redefining driving dynamics in the EV era.
- A few hybrid models are priced below their EV and ICE counterparts, attracting Chinese consumers to hybrids, especially plug-in hybrid (PHEV) and extended-range hybrid (EREV) models.
- The concept of Mobility as a Service (MaaS) is changing how people think about transportation.
- Furthermore, the need for EV charging stations is no longer a challenge to the electric vehicle market.
- By 2025, we could see a broader adoption of fuel cell vehicles, especially in regions like Europe and Asia, where hydrogen infrastructure is beginning to grow.
Improved range, faster charging times and enhanced performance are making EVs not just environmentally conscious choices, but compelling alternatives for everyday use. The global vehicle subscription market is projected to reach as high as USD 791.0 billion by 2032 at growth rates of up to 74.6% annually. This rapid expansion reflects how automakers and mobility providers are shifting from ownership models toward flexible, access-based mobility solutions. Sensor fusion drives the automotive industry’s shift to autonomy by integrating data from cameras, light detection and ranging (LiDAR), radar, and ultrasonic sensors into a unified perception system.
Automotive Sourcing Models are Changing
It combines compound semiconductor nanomaterials with scalable silicon manufacturing for mass-market microelectronics. This approach ensures our reports provide reliable, actionable insights into the automotive innovation ecosystem while highlighting startups driving technological advancements in the industry. However, an SSAB survey reveals that cost and investment challenges remain significant barriers to widespread adoption.
Shifting the focus to hybrid models
Manufacturers that successfully integrate these elements into their strategies will not only navigate the challenges of today but also position themselves as leaders in the future of mobility. Nearshoring is becoming increasingly prevalent, particularly in North America, where manufacturers are shifting operations closer to key markets to mitigate supply chain risks and reduce logistical costs. In the UK, auto production surpassed one million units in 2023, marking a significant recovery. However, with the cessation of certain models, there are concerns about a potential production dip in 2024. New EV launches slated for 2025 are expected to reinvigorate the market, underscoring the importance of product innovation in sustaining growth.
More automakers collaborating with tech companies
Owing to these advancements, the global SDV market is set to reach USD 3.3 trillion by 2034, growing at 31.2% annually. Also, GPS and V2X connectivity improve fleet distribution and service reliability. Telematics and IoT sensors monitor vehicle condition and enable predictive maintenance. For instance, Planet42 extends access to underbanked consumers in South Africa and Mexico. Additionally, the startup offers features such as platooning algorithms for safe and efficient vehicle grouping. It also provides lane-change algorithms that ensure comfortable lateral movement and personalized passenger comfort profiles refined with each journey.
- The foundation of autonomous vehicle architecture lies in a set of sensors, including LiDAR, radar, and ultrasonic systems, providing cars with a 360-degree panoramic view.
- Additionally, infrastructure developments like Toyota‘s new battery plant in North Carolina underscore the industry’s dedication to scaling EV output.
- This approach could significantly reduce waste and contribute to a more sustainable automotive industry.
- However, regulatory hurdles and the complexity of navigating diverse driving environments remain significant barriers.
- Also, applications extend from adaptive cruise control, lane-keeping, and traffic jam assistance to robotaxis and driverless trucking.
- Every year brings with it new shifts in technology, consumer behaviour, and market dynamics, all of which shape and build automotive as a cornerstone industry of the world.
- These innovations collectively propel the industry towards safer, more efficient transportation.
AI-powered semiconductors drive transformation in autonomous driving systems by enabling real-time communication with road infrastructure and enhancing safety features such as emergency braking systems. Tesla’s relentless drive to expand its global gigafactory network has been a defining feature of 2024. This article dives into the company’s ambitious production targets, including the development of Gigafactory Mexico and its innovative approaches to battery cell technology. By streamlining its supply chain through vertical integration, Tesla is raising the bar for EV production efficiency and sustainability. As 2024 comes to a close, the automotive manufacturing industry continues to accelerate its transformation.
Toyota’s Mirai and Hyundai’s Nexo have been the two major players in the market since sales launched in 2016. Along with an increase in refueling stations, look to see an increase in the variety of FCEVs available to consumers in the coming years. In addition, Hawaii passed a bill in 2022 that will create a hydrogen refueling system rebate for developers. Any infrastructure that’s built after January 1, 2023, and utilizes renewable hydrogen will be eligible for up to $200k.
By securing these systems, cybersecurity prevents hijacking of steering or braking functions, protects sensitive driver data, and shields automakers from costly recalls and reputational harm. Motoreto strengthens supply chain resilience in the auto industry and drives nearshoring by aligning distribution, procurement, and sales with regional market needs. The startup enables dealerships, fleet managers, and manufacturers to manage inventory strategically.
The industry itself, however, has remained relatively stable over the last decade.
Wireless and ultra-fast charging stations are also emerging as promising solutions to ease the transition to EVs further. Wireless charging could eliminate the need for physical connectors, offering a more seamless user experience. Digital twins—virtual replicas of physical systems—are gaining traction, enabling manufacturers to simulate scenarios and predict outcomes in real-time.
And Tesla had already decided to close all its stores in 2019, now selling all new cars online. This makes sense, as 83% of car customers already said they wish they could save time by shopping online. This number is expected to have risen in 2020 as dealers everywhere turned to digital channels.