Monthly Mobility - September Edition
Tomorrow's Journey
Our award-winning platform enables fleet operators to launch and scale pay per use mobility businesses.
Latest Updates on Market:
This section covers how new car inventories are playing a major role, EV sales are going slow and used vehicle market is thriving!
New car inventories are finally rebounding after years of disruptions, with inventory levels now exceeding historical norms. This trend is especially noticeable in the U.S., where brands like Stellantis and GM are seeing an increase in available units, offering buyers more choices despite still-high vehicle prices. However, market volatility remains, with rising interest rates slowing down consumer purchases despite better availability of vehicles.
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Electric vehicle (EV) sales, once projected to grow explosively, are falling short of expectations. EVs now make up 9% of total new vehicle sales in the U.S., down from the previous forecast of 12.4%. This slower adoption is attributed to factors like charging infrastructure challenges and the high costs associated with battery production. On the other hand, hybrid vehicles are seeing a resurgence, as they offer consumers a middle ground between traditional gas-powered cars and fully electric models.
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The used vehicle market is thriving, with demand for certified pre-owned vehicles climbing as buyers seek more affordable options amid economic uncertainty. Prices of SUVs have dropped, making them more attractive for budget-conscious consumers. Overall, the industry is shifting towards more personalised and data-driven marketing strategies to engage today's digitally savvy car buyers.
Insights from Tomorrow's Journey Blog
Electrifying used cars involves converting existing ICE vehicles to electric power by replacing the internal combustion engine with an electric motor and battery system. This process, also known as retrofitting, offers several advantages that make it an attractive option for both consumers and policymakers.
By electrifying used cars, we can leverage the existing infrastructure while minimizing the environmental footprint of the automotive industry.
In this blog, we explore:
Recommended by LinkedIn
Read the full blog to see how this sustainable option could shape the automotive industry in the years to come. - Link
Industry News (September 2024)
Exclusive:
The U.S. is set to propose a ban on Chinese software and hardware in connected and autonomous vehicles due to national security concerns. This ban, aimed at preventing data collection and manipulation by Chinese entities, would phase in starting with software in 2027 and hardware in 2029. The regulation follows rising tensions over Chinese tech in critical infrastructure, with automakers like GM and Toyota concerned about the time needed to transition to alternative suppliers.
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The White House recently announced a $1 billion fund aimed at helping small- and medium-sized auto suppliers transition to electric vehicle (EV) production. This initiative, spearheaded by investment firm Monroe Capital, is designed to provide low-cost loans to these suppliers, enabling them to refinance, grow, and diversify their operations to meet the rising demand for EV components. The fund will be backed by government-guaranteed lending through a Small Business Administration license, ensuring affordable access to capital for suppliers who often lack financial resources compared to larger manufacturers. This move is part of a broader government effort, including new tariffs on Chinese EV imports and grants for battery manufacturing, to shift the U.S. automotive supply chain toward cleaner technologies.
Expert Tips and Best Practices
Leveraging Data Analytics to Drive Growth in Car Subscription Platforms is a necessary tool, and here are some essential tips Tomorrow journey must share with you to stay ahead:
We are delighted to share the highlights from September! Stay tuned for more insights and updates in the next edition of our newsletter.