Automotive Industry Trends that Will Continue in 2021

The automotive industry trends the way that many other industries do with fluctuations in the market based on factors that are sometimes uncontrollable.

When the economy is up, the housing market is on the rise, and gas prices are down, more cars and trucks are sold than at any other time. Unfortunately, even though we’re coming out of some of the most prosperous years in automotive history, the COVID-19 pandemic has slowed things down around the world.

Growth is possible for the 2021 Calendar Year

New car sales slumped by 18 percent around the world in 2020 due to the pandemic. This expected drop is already turning around and a 15 percent increase is expected in 2021 as long as we don’t have to go through another economic shutdown or mandated stay-at-home order. Even if we do, dealers have now transitioned to offer online sales of vehicles to make it much easier for customers to buy what they need when they want to.

Electric Vehicles Sales Should Increase

No matter how you feel about electric vehicles, the sales in this category are expected to increase in 2021 from 2.5 million vehicles to 3.5 million around the world. China has had a stronghold in this area of the industry for a while, but we will see an increase in European sales which may overtake the numbers from China.

A Second COVID-19 Wave Could Stall the Auto Industry

While growth is on the rise and a forced recession has taken place, it’s possible we might see a second wave of COVID-19 which will cause another stall in the automotive industry. This stall could cost more jobs and require another wave of plant shutdowns for a temporary period. Many countries are already subsidizing wages for citizens to offset the negative effects of this pandemic, but that can’t continue forever.

Will We Lose the 2021 Model Year?

Typically, all new mainstream models for the next model year are presented to us in the spring and summer at various shows with offering dates in the fall of the year prior to the numbered model year. We should have seen nearly all the 2021 models by now, but not every automaker has been able to bring us the new wave of vehicles yet.

Uncertainty Looms as Elected Leaders Work

The uncertainty we feel in the automotive industry is widespread. Every industry is being impacted by the COVID-19 pandemic. A widespread vaccine cannot arrive soon enough as most of us are beginning to suffer mask fatigue and want to regain a sense of normalcy in our lives. Unfortunately, the impact of this pandemic might be closer to the beginning than the end which means we might be in for more disruptions in our lives.

Will there be a full 2021 lineup of vehicles offered? Will we see more factories being closed during the next calendar year? Are we going to be ordered to stay at home due to a spike in cases? Will a vaccine be made widely available to give us back our sense of normalcy? A lot is still unknown and these factors impact the automotive industry trends as much as all other areas of our lives.