Top Automotive Industry Trends for 2023: From AVs to Subscription Fees

The automotive industry is constantly evolving, and 2023 is expected to bring some significant changes. One of the biggest trend is the increasing popularity of autonomous vehicles (AVs). While AVs are not yet available worldwide, Tesla has made significant strides in publicizing self-driving cars with full functionality. However, it's important for automakers to collaborate with developers to find sustainable business models that provide value to customers without relying solely on subscription fees, which can lead to additional costs for customers and potentially impact the perceived value of the vehicle.

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Autonomous Vehicles (AVs)

Autonomous Vehicles (AVs) are no longer a novelty, with industry leaders like Tesla and Google already exhibiting their self-driving cars as early as 2014. In 2023, Tesla has made significant strides in publicizing self-driving cars with full functionality. While these cars still require active driver supervision, the advancement of AI and ML from Tesla and other innovative companies gives hope that autonomous vehicles will soon be available worldwide. Intvo, a US-based startup, has developed pedestrian demeanor prediction technology for the safety of both AVs and pedestrians.

The Rising Trend of Pre-Owned Vehicles and Factors Driving Adoption

The trend towards pre-owned vehicles is on the rise, with the ratio of used cars to new cars currently at 1.4:1 and expected to reach 2:1 within the next five years. This trend is driven by factors such as affordability, post-Covid personal mobility requirements, and the trust created by OEMs and other startups. Startups and OEMs have introduced solutions that increase adoption among consumers, such as quick evaluation of vehicles, faster settlements, easy finance availability, and service & warranty support.

SUV Dominance

SUVs dominate the market, with demand seeing a remarkable rise in recent years. Automobile companies are launching their own SUV models, offering customers a vast selection from imported SUVs to indigenous compact SUVs. People understand how crucial it is to maintain the highest level of safety when using a vehicle, and an SUV offers the best and highest levels of safety and security, along with a comfortable and spacious ride. Customers expect better features and pricing among the various SUV models available.

Wireless Technology

Wireless technology, including the inclusion of 5G technology, will be a game changer, allowing drivers to exchange information through wireless technology, including traffic and weather updates while on the road.

Cannabis in the Automotive Industry

It might seem strange to think about cannabis in the automotive industry; however, the two have merged. Cannabis is a versatile plant, and it can be used in various ways besides the common medical and recreational use when consumed with practical bongs and pipes. Cannabis can offer a lot of benefits in the automotive industry. An example of this would be hemp-based composites being used to make car parts that are lighter and stronger.

Expanded Subscription Plans

Subscription plans have become more prevalent, with automakers like BMW, General Motors, and Ford introducing plans for advanced features such as hands-free driver-assist systems, requiring additional packages and a monthly fee. Owners of Toyota, Subaru, Lexus, and BMW vehicles must also pay to use a smartphone app to access certain features. Mercedes-Benz offers a subscription plan for owners to unlock extra performance from their EVs, the EQE and EQS.

Stay ahead of the game and embrace these impressive automotive industry trends of 2023 to offer a luxurious and functional driving experience.

Subscription Fees for Advanced Driver-Assist Systems

The automotive industry has been gradually introducing advanced driver-assist systems (ADAS) in recent years to improve vehicle safety and driving experience. However, some automakers are taking advantage of this technology by charging customers subscription fees to access certain features.

For example, General Motors and Ford require customers to pay for their advanced hands-free driver-assist systems called Super Cruise and BlueCruise, respectively. GM's Super Cruise is an option but requires additional packages and a monthly fee, making it more expensive than initially advertised. Similarly, other automakers like Toyota, Subaru, Lexus, and BMW charge owners a fee to use a smartphone app to access certain features on their vehicles.

Moreover, some automakers like Mercedes-Benz have introduced subscription plans for owners to unlock extra performance from their electric vehicles (EVs) like the EQE and EQS. This trend of subscription-based services in the automotive industry is controversial as it may lead to additional costs for the customers and the perceived value of the vehicle.

Conclusion

In conclusion, the automotive industry is witnessing various digital trends that are transforming the way we interact with vehicles. The aim is to create a luxurious yet functional driving experience that people desire, rather than a necessity. Autonomous Vehicles (AVs), the trend towards pre-owned vehicles, SUV dominance, wireless technology, and cannabis in the automotive industry are some of the top trends for 2023. Additionally, automakers are introducing subscription-based services for advanced features, which could lead to additional costs for customers. As the industry evolves, businesses should take advantage of these trends to offer innovative solutions and stay ahead of the game.