Automotive Industry Trends - February 2023
By Jakob Hansen, 2/7/2023
The popularity of electric and hybrid vehicles continues to rise. Auto loan rates are at decade highs. And used car prices have seen a consecutive increase for two months.
Here's an update for our take on the automotive industry trends for February 2023. The industry has seen steady growth, with electric and hybrid vehicles becoming more popular choices. Many manufacturers have released new models or updated existing ones to meet the growing demand. The latest data shows that the global electric vehicle market is expected to reach $802.81 billion by 2028, growing at a CAGR of 36.9% from 2021-2028.
One notable highlight is the increasing availability of more affordable electric vehicles, making them a more accessible option for many consumers. Ford, similar to Tesla, lowered prices on its Mach-e lineup, helping consumers to make the switch. Additionally, many manufacturers are offering generous incentives and discounts to encourage the purchase of electric and hybrid vehicles right now. Governments around the world are also providing tax incentives for the purchase of electric vehicles, further encouraging the transition to cleaner transportation.
In terms of specific models, Ford Mustang Mach-E and Volkswagen ID.4 have seen strong sales, as well as many other EV models from different automakers. These models not only offer an impressive range, but also come with advanced features like over-the-air updates, and even the ability to be controlled remotely.
On the other hand, Internal Combustion Engine (ICE) vehicles are still very much so in the game; they have also seen some positive highlights in the market. For example, some models such as the Ford F-150 and Chevrolet Silverado continue to be best-sellers in the pickup truck segment, known for their durability and reliability. Similarly, sports cars like the Porsche 911 and Chevrolet Corvette continue to be popular choices for enthusiasts, offering impressive performance and handling.
Another important factor to consider is the ongoing trend with connected and autonomous vehicles. Many new cars now come equipped with advanced safety features such as lane departure warnings, automatic emergency braking, and even semi-autonomous driving capabilities. These cars are not only safer for drivers, but also offer a more comfortable and enjoyable driving experience. Furthermore, many of these vehicles are equipped with sensors and cameras that can be used for gathering data to improve transportation systems and reduce traffic congestion.
The most important news is, used car prices officially increased by 2.5% in January and indications are that this trend will persist. At the same time, the average loan rates for new cars reached 8.41% in January, a decade high, and used cars had an even higher average rate of 12.88%. This signals that buying a used car could be more expensive in terms of both the purchase price and financing costs. It's important for potential car buyers to be aware of these trends and factor them into their purchasing decisions.
Overall, the automotive industry remains strong, with a wide range of options available for consumers. If you're in the market for a new car, now may be a great time to start doing your research and taking test drives. Additionally, it's important to consider not just the car's features, but also the overall cost of ownership, including fuel costs and maintenance.