The main trend, which, judging by the statements of automakers, they are very happy with: "Demand has surpassed supply." And there are several reasons for this at once, the main of which is the coronavirus pandemic and the quarantine restrictions associated with it. When a huge number of car assembly plants suspended their activities during the general lockdown, top managers of auto companies decided that the restrictions were set for a long time.


Trends in the development of the automotive industry Creative Workz
The calendar year is coming to an end - it`s time to take stock.


Trend 1: “The share of SUVs in the model range of brands has reached 50%.” It would be wrong to say that this is a new trend. Similar dynamics has been observed over the past decade, but only now the share of SUVs and crossovers has exceeded 50%. This was partly due to the deteriorating economic situation in the country and the decline in purchasing power in recent years.

Under such conditions, many manufacturers have significantly increased the share of SUVs in their lineup, since they were the most popular, and some brands completely abandoned “ordinary cars”, leaving only crossovers (Nissan/Mitsubishi) like explained here VIN decoder. This trend will only grow throughout the world. The versatility of SUVs has almost wiped out the share of compact vans and minivans and is seriously threatening the station wagon segment of the global car market.

Model range

2 trend: “Reduction of the model range”. This trend is partly related to the previous one, but not completely. In addition to concentrating on SUVs, brands have decided to abandon unpopular models, because every car released on our market must pass a bunch of certifications, receive GPS and constantly renew OTTS. In a downturn in the market, spending extra resources on machines that are not in great demand is simply unprofitable.

For the same reason, major market players have practically ceased to sell cars assembled abroad in our country. For each imported model, it is necessary to pay customs duty, which is why the final cost becomes higher than that of competitors. The model range is not reduced only by those players who already sell a few cars and for whom it makes no sense to localize the assembly on our territory (for example, Suzuki or Subaru).

Number of dealerships

3 trend: "Reducing the number of dealerships." According to the statistics of "AUTOSTAT" (VIN lookup), at the moment there are fewer new contracts between dealers and manufacturers than terminated. The wait-and-see attitude of brands is understandable. The situation that has now developed in the market, when dealers at the moment receive fabulous profits due to pent-up demand and shortages, will soon end, and a deep and long fall will begin in the conditions of client lack of money.

Under such conditions, it is important for brands to enter into contracts only with reliable partners who have a margin of safety and who will be able to accumulate resources in order to survive the coming fall. After all, every unexpectedly bankrupt dealer is unfulfilled obligations, unpurchased cars and hundreds of dissatisfied customers, which leads to a serious image blow to the brand.


4th trend: “Electromobilization of the car market”. Naturally, this sounds quite loud, because so far the increase in Russian interest in electric vehicles is estimated at a couple of percent. However, there is a trend, and it is really growing. So far, electric cars remain something exotic, but with the development of infrastructure, which is slowly but still developing, interest in electric cars will only grow.


Source: VIN check