More gadget than car: Automotive industry trends to watch out for in 2023

The new year brings a lot of changes as the automotive market continues to evolve with the consumers' needs. And were' not just talking about automotive technology but also about how people buy and drive their vehicles. It’s a massive shift from the traditional to the modern, from purely mechanical machines to more technical and computer-dependent ones.

As such, here are some of the automotive industry trends that are quickly reshaping the world of motoring in 2023 and beyond.

Increased production of electric cars

The signs are already here as most of our local car manufacturers are doing their best to make hybrid cars available in their respective lineups. At the same time, tax breaks and number coding exemptions are poised to significantly impact the adoption of hybrids. And we believe that the emerging interest in hybrids will soon progress into fully electric vehicles as EV model choices and prices increase this year.

Sadly, according to data from Counterpoint Global Passenger Electric Vehicle Model Sales Tracker, as of Q3 of 2022,  only 0.02% of total vehicle registrations in the Philippines are EVs. Thailand has 59.2%, and Indonesia is at 25.2%. And yes, we are near dead last of the bunch among ASEAN countries. 

Still, that mix should improve with the influx of cheaper EVs once the executive order removing import duties on them is signed this year. That and the increased out-of-town EV charging points the private sector is gearing up for should help in better adoption.

ALSO READ: Every EV available in the Philippines today

Buying vehicles online

It took a while, but the pandemic lockdowns accelerated this evolution a bit. You can instantly compare car brands, check reviews, and take a virtual tour of your dream car by simply tapping on your smartphone. This could signal a shift toward digital automobile sales, with physical showrooms being relegated to becoming service centers. We're sure car buyers will want to take advantage of the convenience of having an online car marketplace.

Adapting more tech

Chip shortages aside, car manufacturers have no choice but to cater more to the younger car buyers whose criteria border primarily on technology, flexibility, and status. This largely explains the sudden surge of tech features in today’s modern vehicles with tablet-sized monitors and many driver aids.

Self-driving cars

While it hasn’t reached our shores, the concept of self-driving (autonomous) vehicles continues to be worked on. While it is true that self-driving cars are expensive and, in some cases, unreliable, anything can happen with technology. Who could have predicted that people would be charging their vehicles 10 or 15 years ago? So, the trend to push for reliable self-driving cars will continue in 2023.

Connected cars

Since we’ll see more advanced technology, expect more connected cars in 2023, where car systems will integrate with other digital systems. Automakers will likely use predictive technology to maintain vehicles in the best condition while on the road. Sort of like a digital scan for fault codes while on the go. Expect more manufacturers to adopt Over-the-Air updates for their cars with software bug fixes, activation of features, and increased performance, all done via 5G downloads straight to the car.

Security tracking technology

This entails taking security from the usual car alarm and immobilizer to advanced tracking technology. The rising demand for personal and vehicle safety is a significant concern for all car manufacturers, and they are using sophisticated technologies to keep car owners safe.

Summary

The automotive industry continues to evolve rapidly, especially with all the latest technological trends that continue to be developed daily. Rest assured, 2023 will be an exciting year for car owners as they can expect many changes that will significantly improve their driving experience.