The automotive industry is constantly evolving, and 2023 was a year of exciting new developments. If we look back to 2023, it’s clear that electric vehicles (EVs) took centre stage, with more and more consumers opting for eco-friendly options on the road.

But what does the future hold for the automotive industry? In this blog we look into the new and exciting technologies to keep an eye on, the ongoing automotive supply chain shortage, the current state of the UK economy, the continued growth of the EV market, and what we can expect from the used car market.

Join WDA as we explore the latest trends, challenges, and opportunities in the automotive industry to keep an eye on in 2024 and beyond…

The Latest Advancements In Automotive Technology

The automotive industry never stops evolving with new and exciting technology emerging every year. So far in 2024, we have seen a range of new technology that will change how we drive and interact with our cars.

Some of the most exciting new automotive industry technology to look out for in 2024 include:

Electric Vehicles (EVs)

EVs are becoming increasingly popular, and we can expect to see more of them than ever on the roads towards the end of 2024. With improvements in battery technology, EVs are becoming more affordable and have much longer ranges, making them a viable option for an increasing amount of people. Additionally, governments are providing incentives to encourage the adoption of electric vehicles.

Advanced Driver Assistance Systems (ADAS)

ADAS are becoming more common in cars, and we will likely see even more advanced systems emerge throughout 2024. These systems use cameras, radar, and other sensors to help drivers navigate, park, and avoid accidents. Some cars have semi-autonomous features such as lane-keeping assist and automatic braking.

Connected Cars

Connected cars allow vehicles to communicate with each other and with infrastructure, such as traffic lights and road signs. This technology has the potential to improve traffic flow and make driving safer when adopted and used in bulk. In 2024, we can expect to see more connected cars on the road that can share information about traffic, accidents, and road conditions.

Blockchain

Blockchain technology is being used in the automotive industry to improve supply chain efficiency and transparency, as well as enable secure and transparent transactions between vehicles and other entities. With the increasing amount of data generated by cars, blockchain-based systems could be used to process and store that data in a secure and decentralized way.

BMW I Vision Dee

The BMW I Vision Dee was shown off at the 2023 CES event in Las Vegas and is the perfect example of how automotive technology is advancing. The BMW concept car allows you to change the exterior between 32 different colours through use of an app, you can also change the colour of the alloys, add racing lines or change individual panels to different colours, as shown in the image below.

Supercar Blondie was able to see the BMW Dee in person, click here to watch her video about it.

The Dee’s exterior is a film made of electronic paper, built by a startup company called E Ink, which also makes display tech for e-readers, mobile phones, etc. The coating segments contain millions of tiny microcapsules with different colour pigments that change shades when electricity is applied. In a press release, E Ink said that the electronic coating is “ultra-low power,” so changing the car’s colour will not drain the electric vehicle’s battery. It’s exciting stuff and it does a good job of showing how advanced technology is becoming.

These are just a few examples of new technology you will likely see in the automotive industry in 2024. As technology advances, we can expect to see even more exciting developments that will change how we drive and interact with our cars.

The Ongoing Supply Chain Shortage

The automotive industry is currently facing a major supply chain shortage, that is set to continue throughout 2024. This shortage is being caused by a combination of different factors, including increased demand for vehicles, disruptions in global trade, and supply chain bottlenecks.

One of the main causes of the supply chain shortage is the high and unexpected demand for new vehicles. With the economy still recovering from the COVID-19 pandemic and lockdowns, more and more people are looking to buy new cars. This increase in demand is putting a strain on the supply chain, as manufacturers struggle to keep up with the number of orders.

Another major factor contributing to the supply chain shortage is disruptions in global trade. The pandemic has caused major disruptions in trade routes and shipping lanes, making it difficult for manufacturers to get the parts and materials they need to build the cars. Additionally, Russia’s invasion of Ukraine has caused some difficulties with trade barriers, making it difficult for manufacturers to import the parts and materials that they need.

Supply chain bottlenecks are also contributing to the automotive supply chain shortage. These bottlenecks include everything from shortages of raw materials to problems with logistics and transportation.

Overall, the automotive supply chain shortage is a major issue that is affecting the entire industry. Manufacturers are struggling to keep up with demand, and many are having to delay production or cut back on their output. This is leading to higher prices for consumers and a shortage of vehicles on the market.

The UK Economy & Threat of Recession

The UK started the new year on the brink of a recession, the cost of living crisis was in full swing and inflation was at the highest rate since the early 1980s. How the current state of the economy will affect the automotive industry throughout the rest of 2024 is hard to predict. The British Chambers of Commerce (BCC) forecasted that the UK’s economy is not likely to return to its pre-pandemic size until the final quarter of 2024.

The automotive industry is a major contributor to the UK economy and any changes in the economy could have a significant impact on the industry. There are several ways that the automotive industry could be affected in 2024:

If the UK economy is doing well, consumers may be more likely to buy new cars, which would lead to an increase in sales for car manufacturers. However, if the economy is not doing well, consumers will be less likely to buy new cars leading to a decrease in sales.

Another way that the economy could affect the automotive industry in 2024 is through changes in exchange rates. If the value of the pound falls compared to other currencies, it will be more expensive for UK car manufacturers to import the parts and materials they need. Increasing costs for manufacturers leads to higher prices for consumers. If the value of the pound rises compared to other currencies the opposite would happen, it would be cheaper for UK car manufacturers to import the parts and materials they need, decreasing the costs for manufacturers, and leading to lower prices for consumers.

Additionally, any changes in government policies and regulations could affect the automotive industry. If the government introduces policies that are favourable, such as tax breaks or grants, it could lead to an increase in investment and growth in the sector. However, if the government introduces policies that are not favourable to the industry, such as taxes or regulations, it could lead to a decrease in investment and a decrease in growth in the sector.

Overall, it’s extremely hard to predict, all of these factors could go one way or the other. We are still a long way from a stable UK economy, making it extremely hard for industries such as the automotive one to predict what will happen.

Continued Growth of the EV Market

The Electric Vehicle (EV) market blew up in 2022 with sales increasing by 40%, it was a record-breaking year with 1 in 10 new vehicles being electric. This growth accelerated in 2023 and it is expected to accelerate even further in 2024.

More and more car manufacturers are joining the market and new electric models are being released more frequently than ever before. The days of Tesla dominating the market are gone, this increased competition in the market is leading to significantly more options for consumers. The major players in the EV market right now are Tesla, Polestar, BMW, Toyota, Ford, Volkswagen, etc. Tesla is still the leading EV manufacturer but that could easily change by the end of the year.

So, production and overall sales of EVs are expected to rise throughout the year, and more and more manufacturers are expected to focus more on the EV market, with some in the process of going entirely electric. Click here to find out which manufacturers are going fully electric. By the end of 2024, there will be significantly more EVs on the road and more choices for consumers, Additionally, battery costs are expected to continue to decrease, making EVs more affordable for consumers. This, coupled with government incentives, will make EVs more accessible to a wider range of consumers.

We can also expect to see battery technology continue to improve resulting in increased EV charging times and overall range, providing another incentive for more people to switch to an EV. Making the ownership experience of electric cars more comparable to internal combustion engine cars will make it easier for people to switch to an electric vehicle having never owned one. The EV infrastructure is also expected to improve, as the number of EV owners increases we can expect to see more charging stations be built. Advances in technology are also expected to lead to the development of faster charging stations, allowing EV drivers to charge their cars quicker than before.

Overall, the EV market is expected to see significant continued growth throughout 2024 and onwards, with advances in technology and a further focus on infrastructure. EV manufacturer’s current main goal is to make it as convenient, practical and cost-effective as possible to own one.

What Can We Expect From the Used Car Market

In 2022 and 2023, the prices of used cars skyrocketed. The latest data from the end of 2023 showed a significant slowdown after a long period of growth. But what will happen in 2024?

From November to December 2022 the prices decreased by an average of just 0.1%, leaving the average value of a used car still up by 3.4% year-on-year. This data led industry professionals like Auto Trader to predict that used car prices would rise again in early 2023. Whilst the production and delivery of new cars continue to stall, the demand for used cars will increase, increasing the prices simultaneously. Used petrol cars will likely see the greatest increase in price.

Now in early 2024, it is clear to see that used car prices are certainly rising again and that soon the prices will be at a similar point compared to 2 or 3 years ago.

Automotive Industry Challenges 2024 – In Summary:

2024 is set to bring exciting new developments to the automotive industry, but also big challenges to overcome. As we move forward, we can expect to see even more advancements that will change the way we drive and interact with our cars, but also the way cars are made. So, fasten your seatbelts and get ready for an exciting ride…

Automotive Marketing Trends 2024:

What’s your plan to stay ahead of the automotive competition this year? Check out our ‘10 Automotive Marketing Trends For 2024‘ blog to find out WDA’s list of the top automotive marketing trends that you should be making use of in 2024…

WDA Automotive Are Here To Help!

In the fast-evolving landscape of automotive marketing, staying up-to-date with the latest trends, technologies, and strategies can be a daunting task for many automotive companies. The dynamic nature of the industry, coupled with the rapid advancements in digital marketing, makes it challenging to navigate the ever-changing marketing landscape effectively.

This is where WDA Automotive can play a pivotal role. With our expertise and dedicated focus on the automotive sector, we have an in-depth understanding of the industry’s nuances and can help you stay ahead of the curve and remain relevant and competitive in a constantly evolving marketplace. If you would like to learn more or simply just need some advice, give us a call today at 01332 372728 or send us a message via our contact form by clicking here.

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