Automotive Ecommerce and the 2021 Economy Growing during an economic downturn means adapting to new consumer trends, particularly in ecommerce and the automotive industry is no different. They’ve moved onto some interesting tactics to keep sales high and reduce the financial impact of the COVID-19 outbreak.
From basing an online purchase on a sole car stock image to using immersive VR to test drive a vehicle online, there are many ways the industry has been reaching consumers.
Online Buyers Prefer Mobile
Mobile connectivity continues to lead the ecommerce sphere this year, and apps are still the preferred medium for more than 30% of online consumers. Reaching this demographic means auto brands have optimized their online inventories and financing platforms for mobile connectivity. Using mobile-friendly websites, instant calculators, and dynamic apps is helping growing and establishing car brands to grow their pipeline – despite a rough economic market.
Used Cars Made a Comeback
Rather than opting for brand new models, more consumers are taking the practical route and buying pre-owned. Online retailers have made it easier than ever to purchase a vehicle with just a few clicks. The average consumer can save thousands by simply choosing a model that’s a few years old over the version that just came out. Because of the pandemic, consumers are being more frugal with their purchases. Since automotive costs are a major expense in most households, this is one change that has allowed Americans to continue working toward these major milestones in an economic crisis.
Alternative Fuel is Taking Over
Electric vehicles are becoming the new norm, and interest in electric automotive is reaching an all-time high. Increased affordability, improved access to charging stations, and improved market accessibility has driven the market into the hands of multiple car brands.
Many popular brands are now offering electric or hybrid models to appeal to this growing market demand. Younger consumers have a vested interest in preserving the environment, and recent events have driven the demand for sustainable transportation. Electric vehicles are becoming more affordable and accessible than ever before, and now they’re being equipped with the latest tech systems and tools.
The ecommerce sphere is continuing to grow amid changes in social regulations and digital innovation. As consumers become more and more dependent on the internet for everyday life, the automotive sphere is turning to technological advancement to stay ahead of the curve.
These are just a few of the key catalysts for the growth in automotive ecommerce through 2021.
READ MORE HERE: econotimes.com
Engine Components Market: Industry Trends And Forecast Through 2030
The increasing demand for engine components for a broad spectrum of applications across various industrial markets: including agriculture, marine, stationary engines, and automotive is expected to remain the key factor in driving the global engine components market. Innovations and new product development activities are likely to occur in line with the evolving regulatory framework and the growing demand for energy efficiency. Over the past couple of decades, manufacturing techniques and technologies within the engine components market have witnessed considerable progress due to which, the production of sophisticated and cutting-edge engine components is on the rise– a factor that is anticipated to fuel the growth of the global engine components market during the forecast period.
The onset of accelerated automation across small to large factories around the world is bringing about improved efficiency and productivity. The evolving market dynamics, particularly in the automotive sector, are likely to have a strong influence on the overall growth trajectory of the global engine components market. The increasing emphasis on sustainability and energy efficiency is estimated to pave the way for parts made from lightweight materials. The booming global automotive sector, mainly in developing nations like India and China, is projected to play a key role in fueling the growth of the global engine parts industry in the upcoming decade.
With these factors, and the increasing focus on research and development, the global engine components market is expected to cross the market value of US $7.5 Billion by the end of 2030. Advancements in 3D printing technology has also led to notable improvements in designs of various engine parts.
High Demand from Automotive Sector to Boost Market Growth
The increasing demand for engine components from the automotive sector is expected to provide a considerable boost to the market at a global level, as well as an accelerated demand for automotive vehicles, energy efficiency- focused innovations.. A number of lightweight hybrid and composite materials have gained immense popularity among manufacturers, but steel, magnesium, and aluminum are anticipated to remain key materials in production. Research and development is projected to gain momentum through the next decade.
The evolving Agriculture and Construction Sector
Construction and agriculture are likely to provide considerable opportunities to the players operating in the current engine components market landscape. The notable rise in the demand for construction, defense, and agricultural machinery is expected to have a positive impact on the expansion of the market. While players operating in the current engine components market are major component suppliers for automotive manufacturers, a number of companies are also increasingly operating as system integrators– a trend that is expected to continue.
Supply Chain Challenges amid COVID-19 Pandemic
The onset of the COVID-19 pandemic is expected to have a strong impact on the overall growth trajectory of the global engine components market. The closure of major industries in the first quarter of 2020 imposed by the Chinese Government in the wake of the increasing number of COVID-19 cases put forward a number of challenges across the global engine components supply chain. While the first quarter of 2020 witnessed a steep decline in the production of engine components, the second and the third quarter witnessed a major decline in the volume of cross-border trade across the engine components market due to which, market players are increasingly expected to address various challenges in the supply chain.
Engine Components Market: An Overview
The global engine components market is anticipated to expand at a CAGR of 1% during the forecast period, primarily due to an increase in the need for development of high efficiency engines comprising multiple and small, lightweight, and high efficiency components.
Developing economies depend heavily on agriculture, and their growing population demand for high farm yield. Consequently, governments and international organizations have been initiating various schemes to promote mechanization in the agriculture sector. Agricultural mechanization is expected to propel the demand for agricultural tractors, harvesters, and cultivators among other mechanical farming equipment. These machinery are powered by either gasoline powered or diesel powered engines, which in turn is driving the global engine components market.
Drivers of Engine Components Market
Rise in per capita income among the population coupled with increase in urbanization and surge in the demand for transportation of the population as well as consumer products are boosting the demand for vehicles. The global automotive industry has been witnessing a rise in the demand for both passenger vehicles and commercial vehicles; consequently, an increase in vehicle production has driven the demand for engine components.
Strict vehicle emissions regulations mandated by regulatory authorities worldwide are influencing the development and manufacturing of engines to invest toward improving weight and performance of engine components and engine systems.
Challenges for Engine Components Market
Electric vehicles are replacing conventional engine-powered vehicles, a trend that is expected to be a major hurdle in the growth of the market. Several government organizations and regulatory authorities around the globe have enacted stringent vehicle regulations and standards pertaining to diesel operated vehicles. This, in turn, has prompted automakers around the globe to announce plans to phase out the production of diesel engine vehicles. Automakers are expected to shift their focus toward electric vehicles.
Engine Components Market: Regional Analysis
Asia Pacific and Europe are projected to be highly lucrative markets for engine components during the forecast period, primarily due to the presence of a prominent automotive industry in China, Germany, Japan, and India. The rise in demand for electric vehicles across Asia Pacific is likely to boost the engine components market in the region.
Europe has presence of major OEMs and tier-1 suppliers who have advanced research and development facilities, which is anticipated to boost the engine components market there.
Major vehicle manufacturers are investing heavily in the development of engine components. The growing industrial trend toward lightweight vehicles is likely to increase the demand for lightweight components across the globe. Following are the key developments from various vehicle manufacturers:
In July 2019, Hyundai Motor Group developed the world’s first Continuously Variable Valve Duration (CVVD) technology to feature in future Hyundai and Kia vehicles
On September 28, 2018, the Volvo Group developed a new-generation of natural gas fuelled engine. The Group’s engineers have produced an engine that reduces greenhouse gas emissions, while achieving an efficiency rating as good as that of a diesel engine.
MAHLE GmbH is focused on the development of valve train parts, pistons. MAHLE develops the tribological system of valve train components: valves, valve guides, and valve seat inserts.
READ MORE HERE: ksusentinel.com
Driving Digital: Four Auto Sales Trends To Watch In 2021
The massive and diverse U.S. auto industry experienced a “bumpy ride on route 2020”, with lots of blind spots and detours that led to a fairly comfortable downhill finish, then smack into 2021. Although full-year vehicle sales collectively were down, the short-term fourth quarter and December results tell a completely different story, as do the different pockets of problems and prosperity within them.
The most telling trends are revealed when broken down into parts, which is exactly what we’ve done with these four key areas of automotive focus that you should watch as we roll into the new year.
New Vs. Used
The push-and-pull between consumers’ preference for new or used cars is set to continue this year, and will again be influenced by a number of external factors that impact pricing.
Last spring’s auto manufacturing shutdowns led to tight new vehicle supplies as well as decreasing incentives, which also gave used cars the lift they needed to take the lead. But like all good car races, the jockeying that is required to hang onto the lead is never easy, and the used car market quickly saw its price advantage erode as a surge of new demand — particularly from online buyers — brought scarcity and inflation to the secondhand segment.
Other unprecedented pandemic-linked trends also tilted the scale in favor of used cars last year, such as the shift away from public transportation and a flight to the suburbs. However, the biggest force in the car replacement cycle, wear and tear, took a major downshift thanks to a surge in the number of people working from home and not commuting.
“The U.S. market is now estimated to see sales finish around $14.5 million, a much stronger result than the $13 million range that some analysts forecasted earlier this year,” Car and Driver reports, noting the overall decline of about 15 percent would mark the lowest sales levels seen since 2012.
While there is long-term hope on the coronavirus vaccine front, the economy is still fragile and the recovery uncertain, especially given the short-term prospects for additional lockdowns.
Whether it’s new or used vehicle sales, long- or short-term results, the demand for large pickup trucks and SUVs by U.S. consumers continues to be the industry’s white knight. While that is great for the manufacturers’ bottom lines, and will likely continue as long as gasoline prices remain low, the big-is-better trend is not without its vulnerabilities.
Large trucks and SUVs also drive up the average selling price, as well as down payments and average monthly payments, which of course brings affordability into play.
“It might seem at odds with unemployment levels and the harsh financial conditions that so many Americans are finding themselves in right now, but the consumers who are buying new cars during the pandemic are clearly on the other side of the economic divide,” said Jessica Caldwell, Edmunds’ executive director of insights. “They’re likely qualifying for the lowest promotional rates and feeling secure enough to put down more money to get the bigger vehicles and features that they want,” she added.
Luxury sales are also a pocket of strength, including Bentley, which just reported its highest annual total sales ever of 11,206 vehicles.
The Digital Shift
If there’s one thing that dealers, manufacturers and industry analysts agree on, it’s that no matter what the economy does, an increasing proportion of vehicle sales will be done online. While the digital shift accelerated in 2020, it is set to continue to revolutionize the way cars and trucks are bought, sold and financed this year.
“Customers love the idea of having 15,000 cars in their pocket without having to go from one dealership to another in search of what they want,” said Paul Hennessy, CEO of Vroom, which went public in June.
And if customers love it, dealers will want to have it. According to Aaron Krane, CEO of digital auto platform Modal, dealers have seen the digital future – and they accept it: “You don’t sell a car in 2020; the customer buys it.”
The EV/AV Frontier
As much as Tesla continues to enjoy record sales and long-sought (albeit narrow) profitability, the electric and autonomous vehicle (EV/AV) segment is set to see more action and adaptation this year.
On the new entrant front, expect to hear continued whispers about Apple coming to market with its so-called “iCar,” after reports last month suggested the cash-rich device-maker was kicking its long-stalled car project into high gear.
Existing nameplates are also expected to continue to transition more of their fleets toward electric-powered vehicles, especially since the era of environmental laxity and clean air regulation rollbacks of the past four years is coming to an end.
While consumers are proving to be increasingly comfortable with EVs, and the manufacturers are producing all manner of models and sizes, not all dealers are on board with the trend, at least if it requires them to spend extra money to do what they’re already doing.
READ MORE HERE: pymnts.com
Balance Rolls Out Digital Checkout System For B2B eCommerce
Balance has rolled out a self-serve online checkout system to reshape the digital payments experience for business-to-business (B2B) firms, according to a February 3rd announcement.
All retailers, Software-as-a-Service (SaaS) firms, and marketplaces that offer products and services through web and offline can provide purchasers with many payment methods and terms while receiving payment immediately via one system, according to the announcement.
Balance’s platform comes with a corporate payment experience that the company says is as accessible as consumer checkout. It also lets purchasers make payments through an automated clearing house (ACH), credit card, bank wire or check, while obtaining a combined payout from the Balance system. The platform also provides application programming interfaces (APIs) and offers support for firms to onboard and payout suppliers without intervention.
Balance CEO and Co-Founder Bar Geron said in the announcement that the lion’s share of digital business purchases in the present day are conducted by credit card while transactions through preferred methods such as ACH, checks and wires stay offline.
“This is because the process is incredibly challenging, often involving offline quotes and invoices, multiple phone calls and emails, and long payment delays. Balance manages all of this complexity behind an elegant checkout experience and makes offering flexible payments methods and terms as easy as using a credit card,” Geron said in the announcement.
As more manufacturers and other sellers move their sales strategies to the web, as previously noted in this space, they are looking to please digital shoppers the same way Amazon has done for individual consumers. However, B2B eCommerce is not the same beast as business-to-consumer (B2C).
“The core difference between B2B and B2C is that in B2B, the individual researching and buying has a job to do,” Justin King, vice president of B2B strategy at Salsify, previously told PYMNTS. “They didn’t want to be there, necessarily — they have to be there. It is their job. On top of that, the buying cycle for B2B is often much more complex and lengthy, and involves many different decision makers, often with their own priorities.”
READ MORE HERE: pymnts.com