For the last year there have been a lot of changes to the automotive industry. The main issue that was being experienced by all, throughout the last few years, has been the microchip shortage. The effect of this issue on the auto industry was not the best, not for manufacturers, not for customers, and in some aspect not for dealerships either. The increase in prices has offset the decline in sales volume as retail consumers are on track to spend $133.3 Billion on new vehicles in Quarter 3 of 2022. It’s been a rough few years in the automotive industry and we are starting to see some change now. The biggest of these changes, being in Electric Vehicles and utility companies.
Gas prices are rising again meaning an increase in the purchase of electric vehicles. Right now, there is really tough competition in the automotive industry for software operating systems to power the electric vehicles meaning that there is profit to be made by some companies. The goal of this move is to help the environment and move away from gas cars that have high carbon emissions. The biggest part of this news is that utility companies are getting in on this business and helping out with smart charging services and battery management systems. This change will also have an influence on automotive manufacturing especially in the digital aspect of things. The long-term goal of all of this for auto makers is making autonomous cars that are electric/hybrid vehicles with really good driver monitoring systems, changing the world of the automotive industry as we know it.
This change will not come cheap to the utility companies. They already have had to make a pitch to congress to lift caps on Electric vehicle tax credits to help move the energy industry forward. Right now the utility companies are preparing for the surge in electric car ownership because it will cost them hundreds of billions of dollars. Electric Vehicle companies and the utility companies are going to be pushed into working together now more than ever. The more efficient the vehicles get, the more the utility companies are going to have to accommodate all these vehicles, whether cost prices change or not. This means that the utility companies are going to have to adapt their strategies to fight the falling revenues.
All in all, this big change for the car industry is going to be great for creating and sustaining jobs for Americans as well as keeping our air cleaner. This change will really help Americans get back on their feet and make the environment cleaner. With all these big changes happening in the auto industry, LA Insurance is still offering lowest down payments starting as low as $99 down. Whether you have a gas car or an electric vehicle, we’ve got you covered. Get your quote now.