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Tuesday, 26 January 2021 11:01

Five Automotive Trends to Watch in 2021

Written by Ryan Mandell

Index

...it purchased another digital food delivery service, Postmates, for $2.65 billion in July.

 

Electric Vehicle Expansion

 

Auto manufacturers remain committed to both the hybridization and electrification of their fleets. As proof, the 2021 U.S. lineup includes 75 different fully electric (EV) or plug-in hybrid (PHEV) models, compared to 59 in 2020.

 

Tesla continues to command the largest share of the EV market. However, growing parity between legacy and startup manufacturers is predicted to drive a more balanced environment, reducing Tesla’s market share from a forecasted 66% of new electric vehicles sold in 2020 to 55% in 2021.

 

Increasing levels of choice have spurred EV adoption for the past several years and the expansion into the pickup truck segment may serve as a catalyst for further growth and disruption. 

 

GM recently announced the EV Hummer, Ford is bringing to market a fully electric F-150 in 2021 and the startup Rivian is enjoying increased attention thanks, in part, to its planned use in the Amazon delivery fleet.

 

Consumer anxiety over EV range limitations will likely diminish as the mean range of fully electric vehicles is expected to increase by almost 9% in 2021. These factors, combined with lower EV/PHEV purchase prices, will continue to push consumers down the EV path.

 

Since 2018, the frequency of EV/PHEV vehicles as a percentage of repairable claims has doubled, and the signs point to this trend accelerating in the year ahead, according to Mitchell data.

 

Prevalence of Collision Repair Diagnostics

 

The use of diagnostics continues to increase at a steady rate and, for a growing number of collision repair facilities, it’s a standard part of the repair process regardless of the severity of the damage.

 

An analysis of data from more than 2.2 million scans with Mitchell Diagnostics reveals that the average scan produces...