Electric vehicles will enjoy higher growth opportunities in emerging markets, finds Frost & Sullivan
SANTA CLARA, California, April 23, 2019 /PRNewswire/ -- New vehicle sales and production are expected to stagnate in 2019 due to several global factors, including ongoing US-China trade wars, Brexit, and the revamped United States–Mexico–Canada Agreement (USMCA).
China's new vehicle sales are expected to grow marginally in 2019, but new vehicle sales in the US market, which is the second biggest in the world, is set to reduce by approximately 1.1% over 2018 to 17.1 million units. This decline will be offset by the growth in markets such as Brazil and Russia, which are anticipated to grow by approximately 8% and 5%, respectively.
An important result of the fall in sales will be the rise in shared mobility and innovative mobility streams. Vehicle subscription services will become more popular, with 0.5 million vehicles likely to be signed on in 2019.
"Electric mobility options will continue to rise in popularity, especially electric ride-sharing and micro-mobility solutions, in developed markets" said Viroop Narla Team Leader, Business Strategy, Mobility. "As the number of mobility services surge in 2019, OEMs and other industry participants will look to harness the data for more optimized sales and after-sales solutions."
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Narla also noted "Electric vehicle (EV) growth will increase further owing to model launches and stringent government regulations. Approximately 6.7 million xEVs are likely to be sold in 2019, bolstered by strong sales in China. Africa, the Middle East, Latin America, and South Asia will be the next biggest markets for xEVs due to a strong encouragement by local governments in the form of incentives and subsidies for both automakers and car buyers."
For greater growth opportunities, OEMs and established market players need to:
- Integrate digital technologies; There is significant revenue potential in leveraging digital devices for online car sales, in-car purchases, and mobility solutions.
- Offer alternative forms of vehicle ownership, including subscriptions and fleet services.
- Develop connected, electrified, autonomous, and modular vehicles, as they are expected to be in demand among Gen Z customers.
- Invest in regional capacity and expertise.
- Focus on unique business models such as subscriptions, new financing methods, and Mobility-as-a-Service (MaaS).
Frost & Sullivan's recent analysis, Global Automotive Industry Outlook, 2019, offers key insights into the strategies that will be implemented by industry players in 2019. It also provides context to global automotive and parallel industry players about the ways in which the dynamics within the industry will change and their impact on companies.
Global Automotive Industry Outlook, 2019 is part of Frost & Sullivan's global Automotive & Transportation Growth Partnership Service program.
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Global Automotive Industry Outlook, 2019
SOURCE Frost & Sullivan