Ups & Downs
The number of vehicles sold decreases in the four years in Australia. The Automotive Industry of Australia is going through a transition for the first time in history. The people of Australia are changing the view of car ownership with the entrance of ride-hailing services in the country. This is a big loss for manufacturers because of the dropped in cars sale. But a new opportunity for businesses and consumers with the entrance of different ride-hailing services. Here are some topics which will affect the automotive industry in terms of its future. What will be next in the market and what will be the position of manufacturers and consumers in the industry?
Future of Automotive Industry in Australia
Electric Vehicle in Next Decade
As things are changing in the automotive industry of Australia day by day then what will happen in the future. If manufacturers and consumers both will be able to handle the situation. Although there are a lot of opportunities which will be given to businesses with the entry of ride-hailing services what about the new production of vehicles?
With the advancement in technology, there would also be some changes in vehicles production too. The electric vehicle will also continue to grow over the next decade. New models are coming with the passage of time that are fully electric. The biggest car brand, Audi added a fully electric vehicle to its brand. At the same place, another leading brand Mercedes-Benz has also decided to electrify its brand by 2020. Another biggest entry of Ford will be there by 2020 with 13 electric vehicles. So this step will let the automotive industry to rise.
Other brands like Toyota, Honda and Hyundai will also take a part in this struggle by introducing the latest vehicle with electrifying technology. Additionally, the automotive industry will rise with the passage of time.
Self-Driving Cars Play another Great Role in Success
Self-driving cars are another great way to raise the automotive industry in Australia. This step will let all the manufacturers to produce a quality product for the rise of industry. The exiting of the main manufacturers can always affect the market. Although there is an entry of new competitors the exiting of old ones always harms.
Although self-driving vehicles feel like a dream but everything is possible with hard work. The technology that self-driving cars may use will not let an individual to buy them but it will be a standard of ride-hailing services in the industry. People who want to make money then self-driving cars will be a good source for them to earn money by purchasing and using them in full-time service.
Subscription Models of Vehicles in Future
People always prefer to subscribe to a vehicle instead of buying it. Buying a vehicle is always difficult for those who can’t afford it. So if there will be a subscription model of vehicles then people will prefer to get the vehicle for their use and after then return the vehicle.
After subscribing a car, the consumer will not worry about their maintenance, repair or any other hidden cost associated with the vehicle. These all thing will be associated with the car’s owner and they will responsible for all this. People will only pay for the time they need a car and some other charges for car’s model they hire for their use. This will be a good option for people to use a new vehicle without buying it. This will also change the way people view car ownership. It will be a good step to enhance the automotive industry in Australia.
With all these emerging trends such as self-driving cars, subscription models and electric vehicles, the automotive industry of Australia is growing again. The cars sales increase 12 percent between 2016 and 2017 and it will be a fastest and speedy growing part. SUVs sell in Australia market is growing day by day and some predictions show that it will be growing with the rate of 6.8 percent between 2017 and 2020 that will a big success for the automotive industry of Australia.
So, in the end, we concluded that there is a change in the automotive industry. There is a decrease in car sales, higher interest rates and fall in vehicle affordability are the basic changes. There is also a continuous margin pressure that is pressuring and forcing original equipment manufacturers to make changes in the product. After changes in the original product also affect its cost. Then it also affect the consumer’s affordability. These changes also affecting the dealers who are focusing on expenses and using both new and used inventory. In the result, they are thinking about selling their businesses for the sake of getting some advantage.
There is also a potential effect on strategic investments such as personal vehicle ownership and electric vehicles. These all expenses affecting carmakers and car dealers.