Some Automobile Trends in 2017

The automobile industry is going through a tough time in 2017, and it is more challenged than many people realize. The data and figure indicate good performance on the surface. Worldwide sales increased by 4.8 percent from last year to a record high of 88 million in 2016, and meanwhile profit margins for suppliers and auto makers (also known as original equipment manufacturers, or OEMs) are at a 10-year high. In despite of such good sales performance, the automobile industry has some serious problems when it comes to two critical performance indicators: total shareholder return and return on invested capital.

As Silicon Valley and Motown continue to meld, it's becoming clear that the future of automobile industry will be a self-driving, electric, and possibly shared vehicle. The manufacturing process will go through great changes due to alternative fuels, new lightweight materials and innovative technology, while cars we drive are also being transformed in 2017. Below are the automobile trends in 2017.

Self-drive cars

At an auto show, Google announced that it had built sensors for self-driving and will put minivans with the technology on the road in 2017. At CES, Ford revealed the latest iteration of a self-driving vehicle that it hopes will be ready for the road come 2021. That doesn’t mean a vehicle you buy this year won’t assist you with the driving. They are created to assist your driving as driver-assist technologies, meaning we are one step closer to a hands-free future.

Connected cars

As rear cameras are considered as a priority for most manufacturers, 80% of all manufactured cars will have one by 2017. Today, when you look at the new cars sold in U.S., you will find almost half of them are assembled with back-up cameras. Besides, Wi-Fi hotspots in vehicles are on the road to becoming standard. This is proved by 20% of car manufacturers who intend to prepare WLAN hotspots in vehicles in 2017. Furthermore, app instead of built-in GPS systems, is widely used in the car industry or in vehicles, such as Google Maps and other navigation tools. Apps like GasBuddy show the driver where he or she can find the cheapest fuel in their area. Since music apps such as Spotify have put on the market, there’s no need for using traditional or even satellite radio.

Electric cars

What we can just imagine in the past has become the norm today. The alternative fuel market will reach $614 billion by 2022. The Asia-Pacific region especially in China, will keep expanding in the market. In July 2016, China market has gone up to 1.1% of all new car sales in terms of electric vehicles (EV), breaking through the 1% barrier. If we explain it in another way, 1.1% meant 34,000 new EVs on Chinese roads in July 2016, which is a 188% increase compared with June.

Crossovers

What is a crossover? It drives like a car but with SUV design features, such as Honda CR-V and Toyota RAV4. These cars are built on a car frame with the design features and functions from sport-utility vehicles. They will only become more popular than ever. Next time when you attend the auto show, you’ll probably see even more models in dealerships. Best examples include the Rogue Sport from Nissan, CX-5 from Mazda and the EcoSport from Ford. Some of them first come into the public eyes at the L.A. Auto Show in 2017.