The Automobile-Industry Trends of 2023 to Look Forward To

Posted on: Jan 23, 2023 | | Written by:

The Automobile-Industry Trends of 2023 to Look Forward To

Published on January 23, 2023. EST READ TIME: 4 minutes

The pandemic lasted for two years, but in these two years, several industries were left crippled. The automobile industry was one of them. Many other industries, such as the car insurance industry, which is related to the auto industry, took a hit as well. However, ever since things started opening up and lives went back to normal, the industry slowly but surely resurrected, too, and today is growing once again. The customers, therefore, have a lot of expectations from the automobile industry. What exactly are these expectations? Let’s find out.

1. Shift to a digital model

When everything from vegetables to houses is being sold online, why should the auto industry fall behind? It has already been seen that many car dealers are now shifting their business online, or at least opening an online business too while keeping the offline one open.

People feel comfortable browsing for cars and auto accessories online as they get greater ease and convenience. Also, like all online products, the prices are more competitive. This is because the dealer saves a lot of money when selling online. Car showrooms are very expensive to rent. When the dealer saves that money, they offer heavy discounts to the customers and this proves to be beneficial for both parties.

However, we cannot completely wipe out the existence of offline car dealers. Research has found that over 60% of all customers prefer buying cars offline after examining them physically at a dealer’s showroom. So while a large number of automobile enthusiasts will expect to find more options online, the offline dealers are here to stay as well.

Third-party and comprehensive car insurance plans are already available online, so it would be interesting to see how the rest of it works out.

2. Alternate ownership

Since a lot of people are working from home or working with a hybrid model, travelling to the office is not as common as it was in the pre-pandemic era. As a result, a lot of people have sold their cars and now depend on carpools, shared cabs, app-based cabs, and other types of shared vehicles. The customers hence expect a surge in the number of fleet vehicles this year. Many people would benefit from more can companies, carpooling services, etc.

Many carpooling and cab companies in India are now majorly shifting to e-vehicles. These vehicles are cost-effective and help to make the earth greener. The customers, therefore, will surely expect to see the automobile industry work more extensively on e-vehicles and make improvements in that sector. Better car insurance plans should be designed, and riding an e-vehicle should be convenient and comfortable in every possible manner.

3. A bigger market for used vehicles

There is quite a large market for used vehicles these days. This is mainly because of two reasons. Firstly, a lot of people are working from home and do not require their own vehicles to commute to work. They are thus selling their cars. Also, people who have taken financial hits due to the lockdown are downsizing and letting go of their expensive cars while shifting to pre-used vehicles.

There has been a surge in companies and agencies dealing in used vehicles, but in 2023, the buyers definitely expect to see more organisation in this sector. There should also be better options in comprehensive as well as third-party car insurance plans for used vehicles.

The automobile industry has already taken cognisance of this, and a lot of work is being done to remodel the old car sector. From offering excellent assistance to offering financial schemes, the pre-used car dealers are making sure the customers are not inconvenienced in any way.

4. SUV dominance

The demand for SUVs has seen a marvellous rise over the last few years. These days, it is extremely trendy to own an SUV. As a result, more and more automobile companies are launching their own SUV models, and customers are spoilt for choice. From imported SUVs to indigenous compact SUVs, there is always a model available in your choice.

The main reasons behind the popularity of SUVs are comfort and safety factors. People understand just how crucial it is to maintain the highest level of safety when using a vehicle. This is also why more and more people are investing in the best car insurance plans. An SUV, undoubtedly, offers the best and the highest levels of safety and security, while offering a comfortable and spacious ride.

Customers would surely like to see better features and pricing among the various SUV models available. This is a great expectation that buyers have from the automobile industry in 2023.

5. Better customer relationship

This goes without saying, but people would obviously want better service and customer relationships from the automobile industry as a whole. This includes everyone from the salespersons at a car dealership to the top management of the biggest auto manufacturer. Sadly, people still don't experience the best services after they buy a car. From unsatisfactory servicing commitments to rude salespersons, the buyers have to deal with a lot. Hence, it is only fair that the buyers expect the auto industry to put some rules in place that would favour the customers.

This is universal for all industries, and if the automobile industry can identify the gaps it has and work on them, everyone will benefit so this is a trend that everyone would want to catch on to!

The final word

Any industry is left incapacitated if it doesn't have happy customers. The automobile industry in India is no different, and hence the sector as a whole should come together and meet the expectations of the buyers in 2023. There are indeed some very interesting trends to look forward to, and these trends would benefit not just the customers but the entire industry and all the people associated with it. It would therefore be interesting to wait and watch how the auto industry meets the demands and what results come off by the time 2023 draws to an end.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

Why Should You Opt for Long-Term Third-Party Car Insurance?

Usage-Based Insurance - How it Works and What are the Benefits

How Will Self-Driving Cars Disrupt Our Lives?

The Next Big Green Thing in Auto Industry: Electric Vehicle (EV)

Are Airbags Covered in Indian Car Insurance Policies?