After an incredibly challenging 2020, a new financial report predicts that car sales around the world will increase by around 9 per cent throughout 2021.
The report by financial group ING claims that the increase in electrification in the car industry, as well as a general rebounding of the economy, will lead to a resurgence of the car industry, as well as the precision engineering tools used to manufacturer increasing complex cars.
There was a caveat mentioned in the report that the recovery, much like the previous year’s struggles will vary quite substantially, with the biggest rates of recovery set to be seen in Western Europe, where the car industry was hit particularly hard.
Moody’s forecast the decline of the industry at 25.2 per cent, compared to a decline of 15.2 per cent year on year for the North America car industry.
The car industry has been seeing several notable shifts over the last five years that, much like trends in employment and other fields, have accelerated as a result of the pandemic.
The biggest of these is the impact of electrification in the car industry. Many countries, including the UK, have adopted policies to sell only electric cars by 2030 as part of climate control policies.
Subsidies, as well as cheaper, more practical models have made electric cars viable and desirable to a wider number of drivers, who can benefit further from a lower total cost of ownership.
The emergence of big technology companies in the car industry space, such as Google and Apple designing autonomous cars as well as a range of upstarts are also set to aid the long term health of the car industry.