According to the highly respected Society of Motor Manufacturers and Traders, automotive manufacturers in the UK will experience a growth rate of 9% during the next 12 months. This reflects an upward trend that was prominent throughout 2012, and one that is unlikely to abate anytime soon. With the industry also experiencing robust expansion in the U.S., there is genuine optimism that the automotive trade is set to achieve success on a vast, global scale.
The Trends for the 2013 Automotive Trade: 3 to Watch Out for
As car manufacturers across the world gear up for a prosperous 2013, it is worth evaluating the individual trends that will define the automotive industry during this time. Consider the following: –
- A Continuation of the Environmental Drive: While in the last 5 years we have witnessed a growing number of consumers purchase environmentally friendly and hybrid vehicles, their motivation for this choice is set to change. Historically, customers have procured fuel-efficient cars as a consequence, whereas they are now more likely to make a conscious effort to buy eco-friendly models. The growing sense of environmental responsibility that is shared by society is beginning to outweigh any lingering cost concerns, with the result that hybrid vehicles are set to dominate the market in 2013 and beyond.
- The Meeting of Diesel and Luxury Vehicles: At the alternative end of the spectrum, diesel powered vehicles have benefited from any extraordinary series of technological advances in recent times. As a consequence, 2013 is likely to be the year where diesel becomes a popular driver of luxury model cars, as manufacturers strive to combine high performance with an increasingly powerful and responsive fuel. This trend is likely to be particularly prevalent overseas, with BMW and Mercedes set to follow in the trail-blazing footsteps of Audi during the next 12 months.
- Insourcing as Opposed to Outsourcing: When the world was experiencing an economic boom prior to 2007, outsourcing had emerged as a preeminent working and recruitment method. While this helped manufacturing firms to reduce their costs, however, it also had a dramatic and unfortunate impact on domestic employment levels in nations such as the U.S. and UK. This has changed completely as we enter 2013, with companies now looking to insource their workload and move operational activity into national production plants. Looking forward, this has the potential to trigger regional economic growth, while empowering independent garage owners and insurance providers.