YOU WILL GET SHOCKED! SEE WHAT CARS WILL BE AVAILABLE IN 2026
The COVID-19 pandemic has changed the global car market, which made manufacturers faces enormous challenges.
Working from home, benefits and compensations have allowed more consumers to save money for luxury cars.
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At first look, this is good news for car companies – higher prices and higher profit margins. However, in reality they need to increase production in this segment, which after all occupies only about 20% of the market.
It leads to over-competition and the need for ever-increasing investments for a relatively small market share.
The same refers to electric cars. They are the future. Everyone wants a share of it. It brings unprecedented competition. Almost as many brands compete for that 20% as for the other 80%.
While the technology in this sector is still not mature, prices are high and economies of scale are limited, except for the leading player - "Tesla".
S&P Global forecasts that there will be 200 electric models on sale by 2026; they will equal the total sales of internal combustion engine and hybrid vehicles by 2029.
The pandemic forced another change. Fewer and fewer consumers are brand loyal. People want the best, the newest and the most affordable, and very few times a manufacturer is able to offer all three.
In the USA, 53 percent of buyers changed their car brand in 2022. Of those, 60 percent expect to do so with their next car purchase.
S&P Global assumes that as a result, automobile manufacturers will need to target buyers more directly and precisely than ever before. They will need more data than ever before about potential buyers and will need to analyze that data more carefully to target the right households.
