Future Trends in Auto Sales

The transformation underway in the auto industry isn’t just incremental, it’s seismic. 1. #Electrification isn’t a feature—it’s a foundational shift. We’re not simply trading gasoline for electrons. We’re rewriting the playbook on transportation infrastructure, consumer behavior, and ecosystem collaboration. Fueling once meant gas stations—ubiquitous, fast, familiar. Charging demands something entirely new: at-home options, workplace solutions, fast-charging hubs, and reliability at scale. Today, charging networks are where gas stations were a century ago, fragmented, inconsistent, and early-stage. Tomorrow, they must become intuitive, universal, and invisible to the user. 2. This is a behavioral revolution. People are relearning #mobility: planning around charging instead of filling up, integrating #EVs into home energy systems, and considering total ecosystem value—not just the vehicle. This isn’t just a powertrain update; it’s a lifestyle evolution. 3. But EVs are just the opening act. #Autonomous vehicles will take us further, changing not just how cars are powered, but how they’re used. The shift from driver to passenger introduces new paradigms: AI-driven fleets, shared mobility, time-as-a-service, and platform-based revenue streams. If EVs electrify the chassis, AVs electrify the business model. 4. #AI is reshaping every touchpoint: Design & manufacturing through generative algorithms and digital twins | Personalization through intelligent in-car assistants that adapt to driver needs in real time | Safety through predictive ADAS that interprets and reacts faster than humanly possible Experience through proactive OTA updates, learning behavior, and service anticipation | AI isn’t replacing people—it’s enhancing vehicles to be wise, not just smart. 5. Emissions The auto industry holds a key lever in the global effort to reduce emissions. That means accelerating battery #innovation, scaling charging infrastructure, and lowering the cost curve through strategic public-private partnerships. The industry must go beyond compliance and lead with cross-sector collaboration at its core. 6. The biggest risk? Standing still. The next 25 years will bring more disruption than the past 100. The risks are clear: Falling behind in EV affordability, Losing the software race, Being unprepared for an AV future driven by AI, Failing to monetize mobility beyond the sale, Changing global supply chains, Consumer changes in traditional ownership, Losing relevance to new mobility ecosystems. The new battleground is #software, #userexperience, and #speed. The winners will not be the biggest, they will be the boldest. Those who embrace the shift from product to platform, from ownership to access, from vehicle to value chain. The #futureofmobility will belong to the companies that can design trust, code empathy, and build ecosystems. They will rewrite the very concept of movement, freedom, and possibility.

John Murphy from Bank of America has "Five auto themes to watch for in 2025": Tectonic shifts underway:  The global auto industry is in shock given the profound changes underway driven by growing excess capacity in China and the entrance of new domestic names, which is driving an export boom. Europe is particularly affected by China due to its lax import restrictions. Conversely, North America (NA) is the only region that is well positioned given the protection afforded by its high tariffs. In addition, we expect NA to grow, driven by pent-up demand. Our US SAAR projections are unchanged, 16.5mm in 2025, climbing to a peak of 18mm+ in 2028. Regulation may ease:  2025 is poised to be a year with significant regulatory change due to the new US administration. ACC II, which mandates aggressive targets for EV sales in CA and other states for MY25, is looming. President Trump is likely to repeal this regulation, creating a legal battle with few cues about the potential outcome. President Trump is also likely to eliminate federal IRA incentives for EVs, and repeal some of the upcoming more stringent environmental standards. Pricing remains resilient:  We expect New & Used pricing to remain relatively solid in 2025. New ATPs are now in line with the pre-pandemic trend, monthly vehicle payments as a % of disposable income are within the affordability threshold, and prices have largely stabilized. Used prices have stabilized after the steep decline in 2023 and the relative price of used to new vehicles is now within historical levels. The supply of late model used vehicles is constrained, which should further support pricing. Consolidation is necessary:  The auto industry faces costly challenges: global overcapacity, the transition to EVs, and AVs. For this reason, we think the necessity of scale has become more important than ever, and consolidation, partnerships, and alliances will become even more prevalent. The recently announced merger between Honda, Nissan, and Mitsubishi is a sign of what may come. Autonomous vehicle progress: AVs are making progress and robotaxi fleets are expanding, creating demand for a regulatory body at the federal level. AVs are primarily regulated via state laws, which complicates the deployment of AVs. There have been some attempts to create a federal framework, but no standard has emerged. We expect this will come to fruition during the new administration and help promote the development of AV technology.

The car-buying process has transformed, with 95% of buyers beginning their research online. For dealerships, this means embracing digital innovations to stand out.  Implementing features like virtual test drives and online inventory browsing gives potential buyers an immersive experience from the comfort of their homes. In fact, dealerships utilizing these tools have seen a 20-30% boost in lead conversions. Building trust through customer reviews and active social media engagement also plays a pivotal role. Dealerships that seamlessly integrate their online platforms with in-person services have seen up to 50% higher closing rates, as buyers value a smooth transition from researching online to visiting the showroom. Moreover, interactive tools such as payment calculators and appointment scheduling allow dealerships to enhance the customer experience and streamline the decision-making process. Digital strategies are no longer optional; they’re essential for growing sales, engaging customers, and staying ahead in the automotive industry. #AutoSales #CarDealerships #VirtualTestDrives #CustomerReviews #LeadGeneration #OmniChannelExperience #AutomotiveIndustry #OnlineCarShopping #CustomerEngagement #AutoMarketingStrategies