6 Auto Trends To Watch Out For in 2024

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If you’re in the market for a new vehicle in 2024, you might be watching new sale announcements the way investors watch stock charts. But falling prices and dealer incentives aren’t the only auto trends to keep an eye on in 2024, although they might be the most interesting.

Lower Prices

First and foremost — and let’s face it, the news most of us have been waiting for — new car prices could drop. Vehicle inventories should reach pre-pandemic supplies, with 2.56 million units on lots across the U.S., according to Bringoz. That’s up 57% from the beginning of 2023. That, alone, could drive prices down.

Couple a healthy supply of cars with global declines in inflation and falling interest rates, and it’s the perfect scenario for consumers. Bringoz also predicted increased dealer incentives to move cars, writing, “Higher dealer inventory levels, income growth, and bigger discounts and incentives are helping to make new vehicles more affordable which could lead to increased sales in the coming year.”

Slow Growth for the Industry

However, don’t look for the automotive market to explode all at once, experts said. Cox Automotive predicted weak growth as a result of high interest rates and still-elevated inflation levels. “The labor market — a key driver of vehicle sales in the U.S. market — is expected to weaken, but unemployment levels will remain low enough to support a healthy auto industry,” stated the 2024 Cox Automotive Market Insights Forecast.

2024 Will Be the Year of the Electric Vehicle

MotorTrend named the 2024 Toyota Prius, a hybrid vehicle with a plug-in hybrid option, as the MotorTrend Car of the Year. But EV sales will continue to grow, with expanded choices in models, more dealer incentives and more advertising, according to Cox Automotive.

Overall, the market share for electric vehicles — encompassing EVs, plug-in hybrids and hybrids — should reach nearly 24% this year, per Cox Automotive.

EV Brands Will Struggle

In spite of EV market growth, it’s possible that only the strong will survive. “Demand hasn’t nearly met expectations in multiple markets, and when anyone can amass a list of 69 EV start-ups to watch in 2024, that signals that some companies will file for bankruptcy,” Forbes reported.

Look for consolidation, alliances and acquisitions in this highly competitive, yet saturated, field.

Tech Issues Will Lead to Growth for Repair Shops, Headaches for Car Owners

As cars get more high-tech, the potential for problems grows. One Cox Automotive study revealed that the average owner had their vehicle in for service or maintenance 2.5 times in 2023, up from 2.3 times in 2021. Consumer spending for auto care is expected to surpass $400 billion in the next two years, according to Bringoz.

Additionally, Forbes reported that tech-quality issues will rise in 2024 as a result of the ongoing chip shortage and reductions in engineering staff.

Cybersecurity Concerns Will Rise

The emergence of artificial intelligence, likewise, could lead to additional repair and maintenance concerns — especially in highly advanced EVs with autonomous driving systems or AI-powered safety features.

“In 2024, cybersecurity will become even more ingrained in the average person’s daily life,” said Michal Pechoucek, chief technology officer at Gen, in a press release.

While a scene from the Netflix original movie “Leave the World Behind” — one wherein thousands of unmanned Tesla’s clogged U.S. highways — is not likely, automakers will be looking to protect their tech at every level.

Forbes reported that 64% of C-level executives believe the automotive supply chain is vulnerable to a cyber-attack. The smartest manufacturers will stay on the cutting-edge of cybersecurity and software updates, perhaps even consolidating computing networks into supercomputers they own, monitor and maintain, according to Forbes.

In all, 2024 might bring a hint of normalcy to the car market — a sense of normalcy which consumers haven’t experienced since 2020.

“After four years of anything but normal, Cox Automotive is expecting balance to return to the U.S. auto market in 2024. And that will clearly be better for American consumers and fleet buyers who find more choices, better deals, and better access to online buying tools,” the organization’s forecast stated.

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