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Category Archives: Automotive Topics and Trends

10 Important Auto Industry Trends 2025-2027

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Automotive Topics and Trends

Moreover, Avvenire has a strategic agreement with Daymak International Inc., Canada’s leading LEV distributor. Daymak will assemble Avvenire’s vehicles and distribute them through its network of over 200 dealers in 25 countries. Further, as part of larger decarbonization efforts, the Intergovernmental Panel on Climate Change (IPCC) emphasizes the contribution of EVs to the reduction of greenhouse gas emissions.

Sustainable Automotive Technologies

Along with battery-powered electric vehicles, fuel cell electric vehicles (FCEV) are another alternative to internal combustion engines. By 2035, approximately 16% of all new LV (light vehicle) sales in the US are predicted to consist of advanced automated vehicles (L3, L4, and L5). Fewer new vehicle purchases mean consumers hold onto their vehicles longer, reducing the available used inventory and increasing prices. Additionally, interest rates for used vehicle loans are higher than those for new cars. It is anticipated that used-vehicle sales will not return to pre-pandemic levels of around 40 million units per year until 2025, similar to new-vehicle sales.

Reports from key manufacturing shows

This makes sense, as 83% of car customers already said they wish they could save time by shopping online. This number is expected to have risen in 2020 as dealers everywhere turned to digital channels. As of 2023, the two now equip Ford and Lincoln vehicles with a built-in Android operating system.

a. Battery Technology and Range Improvements

Further, Chipv creates power control chips equipped with triple RISC-V cores, extensive on-chip memory, and robust hardware security modules. In the US, the CHIPS and Science Act allocates USD 52.7 billion in funding and offers a 25% investment tax credit. It provides grants, loans, and incentives to expand domestic fabs, semiconductor R&D, and the broader supply chain.

No Surprise: Q4 Auto Sales Fell, EVs Fell Further

Predictive maintenance powered by AI minimizes machine failures, while IoT networks provide detailed insights into factory operations. These practices not only meet regulatory demands but also resonate with consumers increasingly drawn to environmentally responsible brands. Toyota’s North Carolina battery plant exemplifies this commitment, with operations fully powered by renewables. Recycling initiatives, such as reusing EV batteries, further emphasize the industry’s shift toward circular manufacturing.

Printing: Revolution in Automotive Manufacturing

Investors support companies with strong sustainability commitments, channeling funding toward greener production. The Global Startup Heat Map showcases the distribution of 3836 exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform. It highlights high startup activity in Western Europe and the USA, followed by India. Unless otherwise noted, this page’s content was written by either an employee or a paid contractor of Semrush Inc.

Aadhya Navik designs Ride Safety Software

Following these trends helps greater penetration in the emerging market, like the growing adoption of electric vehicles in China and India. Following these trends will equip enterprises with greater penetration in the emerging market, such as the growing adoption of EVs across China and India. A combination of technological advancements, sustainability initiatives, and new business models will shape the automotive industry in 2025. The rise of electric vehicles, autonomous driving, and innovative mobility solutions will redefine how we think about transportation. Meanwhile, environmental concerns will drive automakers to focus on sustainable manufacturing processes, alternative fuels, and circular economy principles. In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations.

Automotive Industry and Market Trends

Many auto manufacturers are considering integrating in-car payments to ease refueling, paying for parking or tolls, and even grocery shopping. Autonomous driving technologies like AD and ADAS are only possible to implement with the adoption of AI. Driver assistance technology, in particular, can go as far as detecting driver fatigue by monitoring their eyes and taking measures to avoid car accidents. The systems that come together to implement such technologies are sensor fusion, computer vision, and real-time decisions to enable the vehicle to take all complex traffic scenarios easily. Significant investments in AI and Internet of Things (IoT) devices are crucial for fine-tuning self-driving algorithms, making them safer and more reliable.

  • Looking ahead, Tesla’s strategies are likely to influence industry standards and inspire localisation efforts across the sector.
  • North America led the AV market in 2024 with over 40% revenue share, while Asia-Pacific is the fastest-growing region, with an expected CAGR of 35% from 2024 to 2033.
  • Furthermore, the need for EV charging stations is no longer a challenge to the electric vehicle market.
  • The evolution of self-driving and connected cars is simplifying driver-vehicle interaction.
  • These cars offer numerous benefits, not just for drivers and manufacturers, but also for passengers and the environment.
  • Further, this also offers software solutions for fleet and asset tracking as well as connected cars.
  • Global supply chain disruptions over recent years have prompted manufacturers to rethink strategies.

e.Volution manufactures Sustainable Vehicles

Governments also enforce stricter safety standards, pushing automakers to integrate advanced sensor systems. Further, sensor fusion systems incorporate AI and machine learning (ML) algorithms to enhance optimization, predictive maintenance, and decision-making. With a CAGR of 25.5% from 2025 to 2037, the global sensor fusion market is expected to reach USD 7.91 billion by 2025. The automotive cybersecurity market is projected to reach USD 5.11 billion in 2025, with a CAGR of 18.14% from 2024 to 2034. Specific components like silicon carbide (SiC) and gallium nitride (GaN) power devices are expected to see growth, offering up to 60% improved efficiency over traditional silicon components. Jaguar Land Rover’s “Reimagine” strategy has cemented its position as a sustainability leader.

b. Charging Infrastructure Expansion

The used car market is also expected to become more important for consumers looking for cheaper EVs, which typically face greater levels of depreciation than internal combustion engine vehicles. However, used electric powertrain vehicles are still few and far between, with the Society of Motor Manufacturers and Traders, in the UK, suggesting EVs make up 2.7% of the total used car market. These solutions decrease fleet wait times and cut pollution from petrol or diesel vehicles.

It also provides lane-change algorithms that ensure comfortable lateral movement and personalized passenger comfort profiles refined with each journey. The World Health Organization links 1.35 million annual deaths to road accidents, creating urgency for autonomy. AI, ML, and computing allow vehicles to process data points per second with split-second precision. This ensures cybersecurity and reliability for engine control, powertrain management, and other mission-critical automotive applications.

Toyota’s Vision for the Future of EV Design

  • The Asia-Pacific region currently controls the majority of the market due to the strong uptake of electric cars (EVs) in countries like China, India, and Japan.
  • Their scooters use an aviation-grade aluminum frame and are customized for sharing, safety, reliability, and durability.
  • These gateways, combined with advanced transducers, facilitate real-time data collection.
  • And Tesla had already decided to close all its stores in 2019, now selling all new cars online.
  • Let’s embark on this journey together, where ‘driving the future’ is more than just empty rhetoric.
  • This calls for a thorough analysis of recent trends in the automotive industry, So this blog brings you some of the significant car market trends in 2025 that you must know.
  • Norway set a record in the electric vehicle sector in August 2024, as the number of all-electric vehicles on the road surpassed that of gasoline-powered vehicles for the first time.
  • Traditional internal combustion engine (ICE) vehicles are steadily losing ground as governments worldwide implement stricter regulations, including the EU’s upcoming ban on new ICE vehicle sales by 2035.

German OEMs already have a full roadmap from L2 to L3, with Mercedes Benz commercializing their DrivePilot system, and BMW is likely to follow soon. Emerging companies are developing advanced sensing technologies to collect extensive vehicle data and enable vehicles to better understand their surroundings. Blockchain technology is increasingly being utilized in the automotive industry for various applications. It enables secure data sharing for connected and shared mobility solutions, including ride-hailing, urban transportation, and delivery services.

  • Battery technology has taken centre stage in the EV revolution, and this article provides a deep dive into the leading chemistries and formats that defined 2024.
  • Usage-based insurance (UBI) models use driving behavior data to provide customized premiums and are gaining popularity.
  • Self-driving cars are considered safer since they can sense their environment and operate safely within it, eliminating factors such as human error and driver fatigue.
  • Alongside established technologies like AI and big data analytics, the industry is also embracing the Internet of Things (IoT) and blockchain for diverse applications.
  • The startup employs the Perceived Quality Index to eliminate engineering bias by translating customer insights into measurable quality improvements.
  • However, overcoming supply chain challenges takes time, so they are likely to remain in 2025.
  • The company already has 50 Level 4 autonomous trucks operating in the Southwestern United States.
  • Monitoring and understanding these trends are critical for automakers and other stakeholders to stay ahead of their competitors.

ARK MOTORS builds Electric Vehicles

Technological advancements, changes in consumer preferences, regulatory changes, and global economic conditions drive these trends. The automotive industry is highly dynamic, and trends are subject to change over time. Monitoring and understanding these trends is crucial for automakers, suppliers, and other stakeholders to stay competitive. Due to the pandemic, the automotive sector is undoubtedly facing one of the most challenging periods and a massive slowdown for the last couple of years. This calls for a thorough analysis of recent trends in the automotive industry, So this blog brings you some of the significant car market trends in 2025 that you must know.

Examples are bikes, scooters, and mopeds, as well as the electric versions of these vehicles. The chip shortage is proving to be costly for the industry with many auto manufacturers shutting down plants due to low supply. Increasing battery efficiency as well as EV charging infrastructure can speed up adoption. Because of this growth, it’s estimated that there are more than 40 million electric cars on the road. Espite growing inventory levels, new vehicle prices continue to rise, reaching a record average transaction price of $49,507 in December 2022. The best-selling vehicle in the US, the Ford F-Series pickup, has an average price of $66,451, placing it in the luxury category.

Infineon, the largest manufacturer of auto chips, is increasing its investment in production by nearly $1 billion euros in 2022. All of this puts the auto industry at the back of the line when it comes to receiving chips. Now, 94% of consumers check the manufacturer’s website for product information before purchasing a part. And Tesla had already decided run a VIN before hitting the road to close all its stores in 2019, now selling all new cars online.

  • The US-based startup Udelv provides autonomous vehicles for last-mile deliveries.
  • Moreover, its NuPort solution extends reliability by enabling connections between automotive components that support both diagnostics and long-term endurance.
  • AI is also transforming automotive manufacturing by speeding up production and cutting costs.
  • With customers becoming more demanding, rules and regulations are becoming stricter, and competition is stronger and faster.
  • This could allow drivers to retain their jobs, but avoid the injuries and deaths that result from exhaustion.
  • Moreover, Asia-Pacific leads the automotive semiconductor market with a 45% global share.
  • This will drive growth opportunities for automakers in the years to come and shape the automotive industry outlook in the future.

Launch Mobility streamlines Shared Mobility

Israeli startup NoTraffic develops an AI-powered traffic signal platform that digitizes road infrastructure management and connects drivers to the city roadways to manage various traffic-related challenges. The data of all road users is streamed and processed in real-time to empower smart mobility. The solution also serves as the base for additional services such as micropayments and micro-mobility. Moreover, car connectivity transforms the driving experience by integrating with real-time systems and smart gadgets. These advancements guide the automotive sector toward a more intelligent, secure, and sustainable future.

Top Automotive Marketing Trends in 2025

Shared mobility reduces individual car ownership, especially in urban areas, impacting vehicle sales volumes but increasing demand for fleet vehicles and mobility-as-a-service (MaaS) platforms. It encourages OEMs to develop subscription models, short-term rentals, and multi-modal transport integration. Shared mobility also influences vehicle design toward durability, modularity, and connectivity. Autonomous driving is a key innovation driver but remains in a development and regulatory phase.

  • Swedish startup Intended Future utilizes data-driven design benchmarking tools for the automotive industry.
  • This approach could significantly reduce waste and contribute to a more sustainable automotive industry.
  • Shared mobility reduces individual car ownership, especially in urban areas, impacting vehicle sales volumes but increasing demand for fleet vehicles and mobility-as-a-service (MaaS) platforms.
  • The SDVs market is set to reach 7.6 million units in 2025 from 6.2 million units in 2024.
  • In addition to enhancing energy efficiency, regenerative braking systems reduce greenhouse gas emissions by recovering energy during braking to support global efforts to meet stricter emission norms.
  • This has led to a shift away from traditional automotive infrastructure, which focused on powertrains, interiors, electrical systems, and safety systems.

The startup’s platform combines augmented reality (AR), smart camera, and surround-view monitoring to illuminate the route on turns, curves, slopes as well as complex junctions. This assists the drivers in keeping lanes, prevents collisions, and enables autonomous driving options. Moreover, the solution is customizable to any car model or specific OEM requirements. Additionally, smart virtual assistants are emerging as a key HMI feature, aiding drivers and passengers in interacting with vehicles and external services. The global Automotive Human Machine Interface market, valued at USD 70.41 billion in 2022, is expected to grow significantly, reflecting these advancements in automotive technology.

Automotive Topics and Trends

While fully autonomous vehicles (AVs) are not yet standard on the roads, significant advancements are being made in 2025 toward realizing the vision of driverless cars. Companies like Tesla, Waymo, and others are working tirelessly to refine the technology, which includes machine learning, computer vision, and lidar (light detection and ranging) systems. The upcoming automotive industry trends refer to evolving changes in patterns within the sector that influence vehicle design, production, marketing, and usage. Technological advancements, along with changing consumer preferences, regulatory changes, and global economic conditions, are driving these trends.

Connected cars are vehicles that use wireless means to connect to the Internet of Things. They offer a safe, comfortable, and convenient multimedia experience with on-demand features that allow users to browse the web while in their vehicle. They provide various features such as remote diagnostics, vehicle health reports, 4G LTE Wi-Fi hotspots, turn-by-turn directions, and warnings of car health issues. The technology has already processed over a billion customer requests and is set to grow in 2025 with predictive intelligence and maintenance technology. North American and European automakers offer consumers the option to buy vehicles online without visiting dealerships.

Top 7 Automotive Industry Trends Shaping 2026

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Automotive Topics and Trends

Success will depend on manufacturers’ ability to balance technological advancement with practical implementation while meeting evolving consumer expectations. The transformation of the automotive sector is far from complete, but the direction is clear – towards a more sustainable, connected and intelligent future of mobility. Traditional internal combustion engine (ICE) vehicles are steadily losing ground as governments worldwide implement stricter regulations, including the EU’s upcoming ban on new ICE vehicle sales by 2035. This regulatory advancement, combined with growing environmental awareness, is accelerating the shift towards electric mobility. Canadian startup Aadhya Navik designs software solutions that improve safety, comfort, and traffic efficiency in autonomous driving.

Top 10 Emerging Automobile Trends 2025 and Beyond

For this in-depth research on the Top Automotive Trends & Startups, we analyzed a sample of 6000+ global startups & scaleups. However, automotive executives need help as they focus on new technology that meets consumer and regulatory demands. This has led to a shift away from traditional automotive infrastructure, which focused on powertrains, interiors, electrical systems, and safety systems.

Discover Trending Technologies & Topics

In 2024, the automotive industry is increasingly integrating cutting-edge technologies into its operations. Key automotive industry trends include a significant rise in electric vehicle production, a growing market for pre-owned vehicles, and an uptick in digital car sales. Alongside established technologies like AI and big data analytics, the industry is also embracing the Internet of Things (IoT) and blockchain for diverse applications. This technological evolution is reshaping the automotive landscape, driving innovation and efficiency.

Safety and Security in Automobiles

Automotive Topics and Trends

In addition, the startup integrates regional infrastructure knowledge into vehicle design to ensure durability, accessibility, and energy efficiency. Additionally, it uses the Future Trends Index to identify and prioritize relevant design directions across different markets. Read on to explore each trend in depth – uncover key drivers, current market stats, cutting-edge innovations, and the 20 leading innovators shaping the future. Therefore, these were the five trends transforming the automotive industry this year and beyond. However, overcoming supply chain challenges takes time, so they are likely to remain in 2025. Sales of the most expensive cars are predicted to drive the most market growth through 2031.

Toyota Launches the Urban Cruiser EV—Just Not Here

The global automotive industry, responsible for 10% of the world’s carbon dioxide emissions, faces ongoing pressure to overhaul its practices. However, the landscape is proving difficult to steady with an intricate maze of regulations that differ by country or region and lack a unified benchmarking process for sustainability. The SAE, originally the Society of Automotive Engineers, has identified six levels of automation on the path to completely autonomous vehicles.

Toyota’s Legendary Hilux Is Going Electric

Regardless, with the continued global slowdown of EV adoption, we can also expect original equipment manufacturers (OEMs) to follow suit, with a decrease in the level of production, especially in the West. Market leaders are adjusting their strategies to align with current trends, further emphasizing the shift towards EV-only vehicles. Just days ago, Jaguar unveiled their new concept car, the Jaguar Type 00, a fully electric, futuristic vehicle that marks a departure from every other car the brand has produced. This transformation is also expected to help revive sluggish vehicle sales by 2030. The next decade will undoubtedly see dramatic changes in how we drive, how we share vehicles, and how we engage with the technology that powers our transportation systems.

By 2025, 48% of light vehicles sold across 43 major economies will be SAE level 2

Its vehicle control system processes passenger comfort thresholds related to acceleration, deceleration, and jerk rate. It then adjusts driving decisions to minimize motion sickness and maintain smooth operation. The global automotive sensor fusion market is projected to reach USD 3.3 billion by 2030 at a 42.4% CAGR.

Related insights

This data-driven research provides innovation intelligence that helps you improve strategic decision-making by giving you an overview of emerging technologies in the automotive industry. In the Automotive Innovation Map below, you get a comprehensive overview of the innovation trends & startups that impact your engine lookup combined with full VIN report company. Vietnamese startup Phenikaa-X creates autonomous electric vehicles with AI and multi-sensor technology for safe transportation. Its system uses functional modules, combining LiDAR, radar, cameras, and ultrasonic sensors to perceive surroundings, analyze traffic, and navigate efficiently.

consumer trends

THINKey operates through a secure architecture using enclaves in the phone, vehicle, and cloud, adhering to the car connectivity consortium’s digital key standard. Additionally, the startup offers infotainment solutions with plug-and-play SDKs and certification-ready apps for phone mirroring and multimedia features. This facilitates the integration of Apple CarPlay, Google Android Auto, and media streaming into in-vehicle infotainment systems.

The Ford Mustang GTD Is the Best Muscle Car Ever

  • These pods use AI and machine learning algorithms for real-time perception and adaptive decision-making.
  • In the first half of 2023, electrified vehicle production surged by 70%, highlighting the rapid pace of investment in EV production capabilities, and continues to grow.
  • Compared to EVs, they don’t require charging, but at the same time reduce carbon emissions.
  • Front-facing LiDAR scans the road to detect objects, track pedestrians, and respond to traffic to enhance safety.
  • This includes aligning new technologies and business models with the company’s vision.

Jaguar Land Rover’s REALCAR project established a closed-loop recycling system that reclaims over 50K tonnes of aluminum scrap. The project avoids more than 500K tonnes of CO2 emissions by reducing the need for primary aluminum. Another instance is that of Michelin, which made a road-approved car tire with 45% sustainable materials. While the past two years have been a challenge for most auto manufacturers, high-end luxury brands have experienced unexpected success.

  • It combines a gasoline engine with an electric motor to enhance fuel efficiency and reduce emissions.
  • For instance, AI-driven intrusion detection systems adapt to new attack patterns and block breaches before they spread.
  • They shift the industry toward electrification, digitalization, and connected mobility.
  • The expansion will stem from the speedy spread of data that can be capitalized upon to lower expenses, streamline research and development, enhance products and services, and restrict emissions.
  • Firstly, it accelerates the design and testing process through rapid prototyping.
  • Global supply chain disruptions over recent years have prompted manufacturers to rethink strategies.
  • Significant investments in AI and Internet of Things (IoT) devices are crucial for fine-tuning self-driving algorithms, making them safer and more reliable.
  • However, as per the new Agency model, we will get to see that the people would directly be dealing with the OEMs and the dealer’s profit would be shared by OEMs.

Subsidies and incentives for EVs are also under scrutiny, with plans to reconsider or eliminate government-imposed market advantages that favour them. Crucially, the order halts federal funding for EV infrastructure projects, such as charging station programs, until they align with the administration’s policy goals. Additionally, looking at supply chains, AI and machine learning are driving the rise of autonomous logistics systems that can self-optimise routing, scheduling, and inventory management. These systems aim to minimise human intervention, improve decision-making, and enhance overall efficiency, paving the way for smarter supply chain operations. In Latin America, much like other regions, the electrified vehicle fleet is still only a small share of the total vehicle fleet; however, that share is growing. The Latin America Energy Organisation (Olade), released a report showing that with the increase in supply, lower prices and tax incentives, Latin America and the Caribbean have great potential for EV growth.

The Tree Map below illustrates the top 10 automotive trends that will impact companies in 2024. Emerging companies are working to build the first fully autonomous vehicle for city roads, which in turn accelerates the advancements in-vehicle connectivity and IoT. Major automakers, such as General Motors, are expanding telematics offerings by integrating subscription-based services like OnStar as standard features across models. Partnerships between telecom providers and automakers, like Targa Telematics’ collaboration with Renault, are enhancing connectivity solutions, particularly for fleet management. Miniaturization trends in automotive electronics enable the integration of multiple sensors into compact systems to improve vehicle performance while reducing costs. US-based startup Aeluma develops semiconductor technology for mobile devices, AI, AR/VR, autonomous systems, and other applications.

US-based startup FlxTran develops a new transportation system using self-driving vehicles on abandoned railroad tracks to provide fast regional transport to connect smaller communities. The system uses an app to schedule rides on autonomous vehicles, cutting down trip times compared to the available commuting options. FlxTran’s approach improves connectivity and access to opportunities beyond major cities. Moreover, V2X communication systems allow vehicles to interact with each other and infrastructure, improving traffic flow and reducing accidents. These innovations collectively propel the industry towards safer, more efficient transportation. Consequently, the global autonomous vehicle market size is projected to reach USD 448.6 billion by 2035, growing at a CAGR of 22.2%.

Radar Reticence designs Radar Sensors

In addition, TuSimple has partnered with Navistar and UPS to test its software under supervised driving conditions. This could allow drivers to retain their jobs, but avoid the injuries and deaths that result from exhaustion. Additionally, Chevrolet, Hyundai, Kia, Nissan, and Jaguar have all released more affordable EVs that have a range of anywhere from 200 miles to 250 miles. Right now, there are only about 73,215 public EV charging stations across the US. Lithium-ion battery prices have fallen by 89% over the last decade, reaching a price of $137/kWh in 2020.

  • The demand for sustainable and eco-friendly transportation, like electric luxury vehicles, also drives market growth.
  • Meanwhile, Carlos Tarves, CEO of automaker Stellantis, has said the chip shortages will continue to plague his industry next year.
  • This transformation is also expected to help revive sluggish vehicle sales by 2030.
  • Their scooters use an aviation-grade aluminum frame and are customized for sharing, safety, reliability, and durability.
  • By securing these systems, cybersecurity prevents hijacking of steering or braking functions, protects sensitive driver data, and shields automakers from costly recalls and reputational harm.
  • Conversely, in Europe, regulations are scaling up in preparation for the EU ban on new ICE vehicles by 2035.
  • Semiconductor chips are at the heart of almost every automotive trend, from connected technologies to autonomous driving and EVs.

Move-X Autonomous Driving advances Level 4 Mobility Solutions

The US National Highway Traffic Safety Administration (NHTSA) estimates that V2X addresses up to 80% of crashes involving non-impaired drivers. Moreover, economic efficiency improves adoption, as autonomous vehicles reduce transport costs by up to 40% and maximize logistics utilization. Swedish startup Intended Future utilizes data-driven design benchmarking tools for the automotive industry. Probably the most important trend in the automotive industry is the worldwide shift to electric vehicles (EVs).

SafeAD enables Large-scale Fleet Learning

By 2025, we could see a broader adoption of fuel cell vehicles, especially in regions like Europe and Asia, where hydrogen infrastructure is beginning to grow. Environmental consciousness is driving the automotive industry toward more sustainable and eco-friendly solutions. Manufacturers are prioritizing robust security measures to protect sensitive consumer data and prevent malicious interference. From encrypted communications to intrusion detection systems, cybersecurity advancements will ensure consumer trust as vehicles become smarter and more networked.

  • By 2025, V2X technology is expected to significantly create more innovative transportation networks and advance autonomous driving capabilities.
  • This process enables us to identify the most impactful and innovative trends in the automobile industry.
  • Chinese startup Move-X Autonomous Driving offers Level 4 autonomous driving through integrated vehicle platforms designed for commercial deployment.
  • Through V2X, vehicles can share information about road conditions, accidents, and traffic patterns, allowing for real-time decision-making.
  • Volvo Cars has announced plans to adopt large aluminium castings for its next-generation electric vehicles, aiming to simplify production and enhance sustainability.
  • OEMs are advancing and navigating regulatory challenges to introduce and test L3 and L4 automation, setting the background for augmented adoption of autonomous vehicles.
  • This article profiles the top five Chinese automotive original equipment manufacturers (OEMs) leading the industry in sales volume and market capitalization.

The high prices and increasing interest rates are causing sales to decline for dealers and automakers nationwide. Prices are expected to decrease as supply-chain issues improve, and sales continue to soften. However, interest rates may remain high as the Federal Reserve works to lower inflation. In October 2022, the delivery lead time for chips decreased by six days to 25.5 weeks, the most significant drop since 2016. Approximately 70 percent of industrial companies report faster chip supply, possibly due to weakened consumer spending and demand. These constraints are expected to persist into 2025, as semiconductor production has exceeded full production-rate utilization since 2019, with recent rates surpassing 95%.