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Global Light Vehicle Sales are Expected to Rebound in 2021 and Witness a Healthy 8% Growth, Setting the Stage for the Industry to Overtake 2019 Levels by 2023
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2020 was a defining year for the mobility industry in many ways. After a challenging 2018 and 2019, the pandemic threw the industry into a tailspin that saw global automotive sales falling to record lows in the first half of 2020. Several business models stuttered, and revenues hit a downward spiral. However, stakeholders have shown greater resilience, anchoring their comeback in innovative models, novel technologies, and sustainable practices. This research service is a deep dive into regional sales figures, the key highlights of 2020, and the top trends that will drive the industry in 2021.In 2021, android automotive OS, electric two-wheelers, and ‘skateboard’ platforms will gain prominence. Investments in charging infrastructure, technology/platform development, and new business models will add momentum to an already buzzing electric two-wheeler market. Management of waste generated by the scrapping of older vehicles and, over time, of EV batteries, and the concerns regarding rising emissions, will underpin the rise of the circular economy that focuses on carbon neutrality and zero waste. The importance of fuel cell electric vehicles (FCEVs) will increase, as they are positioned as being cleaner than their conventional fuel-powered counterparts. They also compare favorably with battery EVs (BEVs), in terms of faster refueling times, long-range usage, and the absence of battery disposal concerns. About 25 FCEV models are set to be launched over the next five years. Similar to other industries, on-demand services will be in the limelight. Fuel services that deliver fuel to parked cars; auto care services, where oil or tire changes and worn/torn parts maintenance services are delivered to the vehicle's location, and cleaning and washing services offered to cars parked in public areas will be the top on-demand services. Digital retail was the big story of 2020; new players and digital solutions shook an established ecosystem by transforming the way cars were bought and sold. As partial restrictions came into force and customers continued to limit dealership visits, digital retail continued to thrive in 2021. Dealers and OEMs will continue investing in third-party digital tool developers, as they ramp up their digital tools.As for the shared mobility market, shared mobility operators will realign themselves to tap into the significant revenue opportunities offered by last-mile delivery and other application segments. As customer and business demands evolve, innovative solutions for last-mile delivery will focus on autonomous technologies. Author: Joe Praveen Vijayakumar
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