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The auto industry is changing – here’s what that means for you

The global auto industry is undergoing major changes. Car manufacturers across the world are shedding their workforce by the thousands as car sales have fallen. Major manufacturers such as General Motors Co., Audi, Daimler AG, Ford Motors Co., and Nissan have all let go of thousands of workers. Car manufacturing stood at approximately 88.8 million in 2019, representing a drop of 6% as compared to last year.Consumers are becoming increasingly cautious in their spending habits since the financial crisis of 2008, with savings and other expenses assuming more importance than vehicles. Furthermore, ride-hailing services have made traveling easy, so consumers are re-thinking if they need to invest in purchasing a car. According to a 2018 study, more than 44% of responders in a 2015 survey agreed that “having transportation was a necessity, but owning a vehicle is not.” However, three years later, around 57% of urban residents agreed with the statement, suggesting that ride-hailing platforms are making a dent in auto sales.

So how is the auto industry adapting to the major trends in vehicle manufacturing and demand? In this article, we will first identify the major trends and discuss what other alternatives are in place if you need to purchase a car.

Demand for Electric Vehicles is increasing:

The Electric Vehicle (EV) market is expected to increase over the next decade. This is because new technologies have brought down the manufacturing cost. Authorities around the world have also initiated policies for a low-carbon future. Also, millennials are expected to become the largest car purchasing demographic in the future who are more conscious of choosing greener options owing to awareness regarding climate change and the environment. Besides, electric vehicles are now offering better reliability and affordability because EV batteries have improved significantly over the past few years. Car owners can save significantly on fuel costs because electric vehicles are over five times more efficient than traditional cars.

The number of electric vehicles sold in 2019 stood at 3,269,671. But the figure is expected to climb up to 26,951,318 units in 2030. This change represents a growth rate of 21.1%.

Web-based services are challenging traditional car dealerships:

Web-based car dealerships are now becoming increasingly effective at drawing in prospective buyers. An important reason behind this change is that a buyer can gather all the information about any vehicle at home. Users can easily compare different vehicles via such platforms. Further, features of the car are easily accessible too. Buyers can save up on a lot of time through web-based car dealerships.

Changing consumer habits:

Environmental awareness and changes in technology over the past decade or so have completely changed attitudes towards transport. It is no longer necessary to travel to retail outlets to search for products. This is because e-commerce platforms can deliver the product right to your doorstep. Similarly, ride-sharing services have also grown. This is because consumers now expect flexibility in transport. They do not want to worry about maintenance or insurance of the car. One in ten vehicles sold in 2030 is expected to be a shared vehicle. The figure is expected to climb up to one in three by 2050. As a result, the number of private cars is expected to decline.

Autonomous vehicles:

Several major companies and startups have invested tremendous resources in autonomous vehicles. However, the technology at the moment is expensive and not robust. Consumers are unwilling to invest in and rely on autonomous vehicles. However, technology has made significant progress in previous years. Current forecasts suggest that autonomous technology will improve in the future. On the other hand, Advanced Driver-Assistance Systems (ADAS) will begin to eat away at the traditional vehicle market owing to the support they offer to consumers. If the industry manages to overcome hurdles related to cost and technology, autonomous vehicles will probably have a major impact on the automobile sector. This is because they will offer unparalleled comfort and flexibility.

Rise of car leasing:

As we have seen, car sales across the world are declining owing to a variety of reasons. It is because of those reasons that consumers are hesitant in investing a major chunk of their hard-earned money into purchasing a car for themselves. In a situation like this, many are now opting for car leasing options.

As a result, the car leasing industry is experiencing growth owing to a change in attitudes. A car lease involves a customer obtaining a vehicle from a leasing company for a fixed term. The customer has to pay monthly payments to the company for that period. Once the period ends, the car has to be returned to the leasing company. If the original contract permits, the car can also be bought at the end of the term. This model is suitable for many people because it gives them financial flexibility. However, owing to recent changes in the economy and automotive industry, many people are now finding it difficult to maintain their leases. Similarly, others are adopting a wait-and-see attitude, but they also need to purchase a vehicle while making a minimal investment. This is where the car lease swapping model comes in. Let’s go through how the model works, and how you can take-over or transfer a car lease through a car lease swapping platform such as QuitALease.

QuitALease:

Quitalease is a car lease-swapping platform that allows individuals to transfer or takeover a lease. The car lease transfer model developed by Quitalease is not complicated either. The original lessee posts an ad on the platform, along with information such as pictures and car details. Individuals interested in taking over a car lease can then browse through the listings. The platform offers plenty of filters (make, model, color, car type, transmission, mileage, etc.) through which you can search for the car you want. There are other options available as well, such as the messaging feature through which you can contact the original lessee and get clarifications on any questions you may have. Once everything is agreed upon, the leasing company goes through the profile of the person interested in taking over the car lease. The new lessee will take the car keys from the original lessee after approval from the company, and continues making payments to the company. Quitalease is an ideal platform for car lease swapping. It has thousands of cars on its listings, and new vehicles are added every day.

Conclusion:

The automotive industry is undergoing a complete transformation owing to changes in technology and consumer habits. Electric Vehicles (EV), as well as autonomous vehicles, are expected to shake the market of traditional cars. On the other hand, consumers are opting for environment-friendly options and preferring to use ride-sharing platforms for daily commuting.

Platforms like Quitalease.com can let you take over a car lease without having to make major down-payments or any added costs.

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Written by Titli Farooqi

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