INDUSTRY INSIGHTS
INDUSTRY INVESTIGATION Top five trends to watch for in 2021 BY MAX REID
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ager to put what is now being considered Earth’s worst orbit around the sun, more commonly referred to as the year 2020 behind them, Mitchell International has released a report showing the top five trends to watch out for in the automotive industry in 2021. The industry suffered a number of setbacks over the past year as a result of the COVID-19 pandemic, including “a disruption in the export of Chinese parts, manufacturing delays in Europe, the short-term closure of U.S. assembly plants and a significant drop in sales volume” as major contributors to industry strain. However, where disruptions were experienced in many aspects of the industry, many automakers and parts manufacturers found ways to pivot their business in order to meet the new needs demanded by such an uncertain year for the economy. Ford, General Motors and Tesla Motors, among others, teamed up with medical equipment manufacturers to help produce the ventilators, respirators and face shields that would in turn help so many struggling dealerships and collision centres reopen their doors following the initial lockdown in the spring. As well, the new emphasis on remote accessibility to services has prompted a more serious look towards online purchasing platforms for companies in the auto sector.
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Experts suggest that this trend could be a result of lighter-weight parts being used in vehicle assembly and “the interconnectedness of vehicle systems” and their potential to fail.
Startups like Carvana Co. and Vroom Inc. are drawing an increased amount of attention as consumer habits continue to trend strongly toward a desire for more online and app-based vehicle purchasing options. Since the beginning of the pandemic GM has seen its percentage of dealers using the company’s Shop-Click-Drive program rise more than 40 percent, with 85 percent of GM dealers now using Shop-Click-Drive.
In these adaptive business decisions, automakers and repairers have demonstrated their ability to adjust to rapid and abrupt change, a factor that helped Mitchell determine the five trends that are likely to present themselves in the coming year. The first trend identified in the report indicates that the pandemic has led to an environment where personal vehicle ownership has taken greater priority in the minds
In 2021, the U.S. market is expected to offer 75 different fully electric or plug-in hybrid models compared to 59 in 2020.
