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2022 trends in the automotive industry development

2022 trends in the automotive industry development MAS East Midlands

"Demand has exceeded supply". And there are several reasons for this at once, the main of which is the coronavirus pandemic and the quarantine restrictions associated with it. When a large number of automobile assembly plants suspended their activities during the general lockdon
2022-01-19, by Frank Flegg, Director at BNI East Midlands

#2022 || #Automotive || #Cars ||

Table of contents:

Trend 1

Trend 1: "the share of SUVs in the model range of brands has reached 50%". It would be wrong to say that this is a new trend. Similar dynamics have been observed over the past decade, but only now the share of SUVs and crossovers has exceeded 50%. This is due in part to the deterioration of the country's economic situation and the decline in purchasing power in recent years.

In such conditions, many manufacturers significantly increased the share of SUVs in their range, since they were the most popular, and some brands completely abandoned "ordinary cars", leaving only crossovers (Nissan/Mitsubishi). This trend will only grow, and not only in Russia, but throughout the world. The versatility of SUVs has almost wiped out the share of compact vans and minivans and is seriously threatening the station segmentation: VIN check.

2nd trend

"Model range reduction". This trend is partly related to the previous one, but not completely. In addition to focusing on SUVs, the brands decided to abandon the unpopular models, because each car placed on our market must pass a number of certifications, receive GLONASS and constantly renew OTTS. In a downturn in the market, spending resources like shown here VIN lookup free.

For the same reason, the main market players practically ceased to sell cars assembled abroad in our country. For each imported model it is necessary to pay customs duty, which is why the final cost becomes higher than that of competitors. Training is not reduced only by those players who already sell few cars and for whom it makes no sense to locate the Assembly on our territory (for example, Suzuki or Subaru).

3rd trend

"Reduce the number of dealerships". According to the statistics of "AUTOSTAT", at the moment there are fewer new contracts between dealers and manufacturers than those terminated. The wait-and-see attitude of brands is understandable. The situation that has now developed in the market, when retailers at the moment receive fabulous profits due to pent-up demand and shortage, will soon end, and a deep and long decline in the conditions of lack of customers ' money will begin.

In such conditions, it is important that brands enter into contracts only with reliable partners who have a margin of safety and who will be able to accumulate resources to survive the upcoming fall. After all, every unexpectedly failed trader consists of unfulfilled obligations, unbought cars and hundreds of dissatisfied customers, which leads to a serious image blow for the brand.

4 trend

"Electro-mobilization of the car market". Of course, this sounds quite loud, because so far the increase in Russian interest in electric vehicles is estimated at a couple of percentage points. However, there is a trend, and it is really growing. So far, electric vehicles remain something exotic, but with the development of infrastructure, which is slowly but still developing, interest in electric cars will only grow.

Read the full article: VIN decoder

Frank Flegg

Frank Flegg contributor to
Director at BNI East Midlands
Digital Marketing Agency