Automotive Industry in 2021: Who’s Investing The Most And Where?

The automotive industry is large and quite visible. Ask around, and you will see that nearly everyone knows a lengthy list of brands, and nearly everyone has an opinion on the best new vehicles and trucks on the market. 

Because of its popularity, automotive stocks have received a lot of attention from investors for decades, and it only seems to be continuing. Unfortunately, the onset of the pandemic has oozed into a challenged yet opportunistic 2021. And in a harsh twist of déjà vu, most marketers – namely the Europe and UK – are back in extended periods of lockdowns which likely see the first quarter auto sales compromised. 

However, despite the gloom, the automotive industry seems to be far from stagnant. 2021 will be one of its biggest yet, with EVs taking center stage. They will dominate the market, perhaps even with discounts, to drive sales and further contribute to decreasing emissions. 

2021 is expected to bring out a continuation of trends that have been baking even before the pandemic. From peaking EV investment to digital playing an ever-dominant role in the auto purchase process, customer experience and sustainability will be the gist for manufacturers this year. 

The Electric Revolution – Is Happening  

Due to a global effort to reduce carbon emissions and take further action to manage climate change, the automotive market share of EVs (electric vehicles) on the mobility market only rises sharply. Due to a booming variety (with a new model being introduced in 2021), a competitive edge in comfort, management incentives, and other factors, EVs are getting even more notorious among consumers. 

By 2022, global electric vehicle sales are expected to reach 50%, with sales in China (already notorious for their massive EV market) expected to rise 40%. In some states, the EV sales will likely exceed that of traditional power (diesel and petrol) engine vehicles in 2021, and petrol automobiles may be completely off the market in less than a few years. 

Vehicle Connectivity: V2V, OTA & more 

A big focus for car manufacturers in 2021, in addition to building an EV platform, will be connected automobiles and how they can provide a steadier and 2021-like experience for drivers who are progressively demanding of such. Even research shows that prospects for automobiles equipped with tech are now mainstream, with nearly 93% of consumers desiring at least one connected feature in their next car, smart navigation, and camera systems coming out the top.  

The looks and feels of the automobile and how it improves and engages with our modern, everything-digital lives will bring around the most brand loyal drivers. Research also suggests that by 2023, 90% of all new automobiles in the U.S will feature modern connectivity capabilities. 

Self-driving EVs – All-Time High 

The autonomous driving experience has been on the automaker’s agenda for quite some time now, but the timeline to achieve a completely self-driving vehicle keeps getting pushed back.  

So far, the latest developments in autonomous driving technology do not fail to surprise. They progress fast, test fast, but algorithm improvement remains a tricky matter. 

Another issue is that of safety standardization: regulators are postponing recent tech innovations, possibly delaying the launch of autonomous vehicles. 

Overall, autonomous and self-driving automobiles will be a test-and-learn attempt but will not be where all, or even most, of 2021 incomes go. 

In the meantime, it will be tech giants such as Microsoft, Google, and Apple – that will keep working on self-driving vehicles and partner with manufacturers to make it a reality in the nearest future.

At the moment, Tesla seems to lead the charge, given that it already has a successful EV platform to fuel the organization. According to Parts Geek, self-driving automobiles won’t be a reality for a while – we’re expecting to see target locations where giants like Tesla and OEMs will develop the technology, targeting roll out only in the next few years. 

Where to Invest in 2021?

In 2021 automotive stocks have gotten a lot of attention from investors, and here’s why: 

  • Tesla

The newest maker of “premium electric automobiles' 'has recently become one of the world’s greatest manufacturers by market cap, with massive U.S sales and a peaking international presence. So far, investors from China, the EU, and the U.S expect great things from Elon Musk and his associates. 

  • Ferrari NV 

This notorious Italian maker is known for its pricey sports vehicles and many years of racing success. In 2021, Ferrari doesn’t fail to surprise – it remains the strongest brand, and its agenda gives it great pricing power and extravagant profit margins.  

  • Fiat Chrysler 

Investors know this maker as one of the best thanks to its Jeep SUV and Ram pickup models as well as its Dodge muscle cars. Fiat Chrysler also owns the Alfa Romeo, Fiat, and Maserati models and has massive operations throughout Europe and U.S as well as South America. 

  • Volkswagen 

This pioneering automaker seems to be one of the best-selling outside the U.S. Its long-list of brands include VW as the Porsche, Audi, and Bentley luxury models. 

  • Ford Motor Company 

The “old-dog” of the automotive industry remains a market leader in 2021. With commercial vehicles, pickup trucks, and operations all over the world, Ford is now funding EVs and automated cars to help preserve that edge. 

Ford’s F-Series pickups are currently the best-selling vehicles in the U.S and an essential profit generator for Ford.

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