Automotive Industry Trends

Global electric car sales are set to grow strongly again this year, reaching about 17 million. With more than 1 in 5 cars sold worldwide in 2024 set to be electric, the rise of EVs is transforming the auto industry & the energy sector. Read more from the International Energy Agency (IEA) Energy Agency: https://iea.li/44isGtR Electric cars' growth this year builds on a record-breaking 2023, when sales soared by 35% to almost 14 million. Demand was largely concentrated in China, Europe & the US, but momentum is picking up in key emerging markets such as Viet Nam & Thailand. Explore IEA’s Global EV Outlook 2024: https://iea.li/3QdwEhJ Despite near-term challenges in some countries, new IEA analysis sees the global electric car market gearing up for the next phase of growth. Under today's policy settings, nearly 1 in 3 cars on China's roads by 2030 is set to be electric & almost 1 in 5 in the US & EU. One reason for EVs' bright prospects: Manufacturers have taken huge steps to deliver on government ambitions. This includes major investments in EV and battery production. As a result, global capacity to produce EVs and #batteries is on track to keep up with rising demand. Under today’s policy settings, the rapid uptake of #EVs – including cars, vans, trucks, buses and 2/3-wheelers – is set to avoid the need for more than 10 million barrels of oil a day in 2035. That's equivalent to all the oil demand from road transport in the United States today. It’s important to note that the pace of the EV transition will hinge on their cost. In China, more than 60% of electric cars sold in 2023 were already cheaper than conventional equivalents. Competition & innovation are expected to bring down prices in other major markets. The transition to #ElectricCars is changing the global auto industry, and growing competition is putting downward pressure on prices. Chinese companies accounted for over half of global sales in 2023. In conventional cars, China has a much smaller market share. Making EVs more affordable is vital – as is ensuring that the availability of public charging keeps pace with sales. Last year, public charging point installations were up 40% from 2022. To align with government pledges, charging networks must grow six-fold by 2035. Alongside today’s new report, IEA is releasing 2 detailed interactive tools allowing users to dig deeper into EV trends & policies around the globe. Take a look at the data ➡️ https://iea.li/3xHJzlo Explore the policies ➡️ https://iea.li/44fjbvp For more on the key findings from IEA’s new Global EV Outlook 2024, read the freely available report online ➡️ https://iea.li/3QdwEhJ   And join IEA Chief Energy Technology Officer Timur Gül & me for our LIVE launch event at 10:30 CEST ➡️ https://iea.li/3WaxcZn

Adriana Santanocito grew up in Sicily as fashion's carbon footprint kept rising. Her answer began with orange peels. After studying sustainable textiles in Milan, she co-created Orange Fiber, which turns citrus waste into fabric. Then she turned to another problem: leather tanning. Chrome, cyanide, and toxic runoff are still used to turn animal hides into car seats, handbags, and furniture. In Sicily, Santanocito reconnected with Roberto Merighi, a Venetian chemist who had spent 30 years researching substitutes for animal leather. They later brought in Stefano Mazzetti, an engineer with experience at Bosch, Brembo, and Ferrari. In late 2019, the three founded Ohoskin in Catania. Their raw material was already there. Sicily produces more than 1.3 million tonnes of orange and cactus by-products each year. Ohoskin collects the pulp, peel, and fibre left by the juice and cosmetics industries, then dries and mills it into powder. The powder is mixed with bio-based resins to make a patented plant-based leather. The full process stays in Italy. It uses no chrome, cyanide, or animal hides. The carbon figures are stark: Chrome-tanned animal leather: up to 110 kg CO₂ per square metre, including cattle farming Ohoskin: 2.57 kg CO₂ per square metre That is a 97% reduction, independently verified by Climate Partner. The material is phthalate-free, lasts 10 to 20 years, and is made for fashion, footwear, car interiors, furniture, and boats. Sustainability claims are easy to print on a campaign. They matter more on the production line. What other materials are already growing right where we left them? Sources: Find out more about the company: https://ohoskin.com/; Who is behind this innovation: https://lnkd.in/e6g3TMpq Video created by Ben Brown and Ciara Doyle.

Alongside the Concept CLA Class at #IAA2023, we also launched some groundbreaking sustainability features. Many people have asked me about my favourites. This is not easy as there are so many. However, here are my top five:   𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 Rapid charging of up to 400 km in just 15 minutes and a consumption of around 12 kWh/100 kilometres – the Concept CLA Class is the new “one-litre car” for the electric age. Our in-house-developed drivetrain comprises an 800 V electric architecture. Its 750km of range sets the benchmark in its class.   𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐦𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐬 Our team has done some amazing work here. Appearing for the first time in a #MercedesBenz is an innovative paper material made from recycled cellulose. But this is only half the story. The floor mats are woven from bamboo fibre, the door pockets are edged in a biotech-based and certified vegan silk-like fabric, the textile upholstery on the floating armrest is made from recycled PET, and the seats are upholstered in sustainably produced and processed leather.   𝐒𝐭𝐞𝐞𝐥 𝐚𝐧𝐝 𝐚𝐥𝐮𝐦𝐢𝐧𝐢𝐮𝐦 Cutting the carbon footprint of our next generation of cars is a big priority. Advances in the steel and aluminium supply chain, including using almost CO2-free steel and CO2-reduced aluminium, helps us target combined savings of around 400 kg CO2 per vehicle.    𝐇𝐞𝐚𝐯𝐲 𝐫𝐚𝐫𝐞 𝐞𝐚𝐫𝐭𝐡𝐬 Wherever possible, we try to reduce the reliance on heavy rare earths in the design of our electric motors. This is why the permanent magnet synchronous motor in the Mercedes-Benz Electric Drive Unit (MB.EDU) features a significantly lower share of heavy rare earths than previous generations – close to zero percent.    𝐁𝐚𝐭𝐭𝐞𝐫𝐲 𝐬𝐲𝐬𝐭𝐞𝐦 We offer two cell chemistries, one with silicon-oxide content for impressive energy density, and another with lithium-iron phosphate for exceptional performance. Due to its innovative adhesive-based cell module design, the structure is much lighter than a conventional configuration. It is also stiffer, which offers benefits in crash safety. That’s my top five. I’d love to know what you think, so please post your comments below.   #MercedesBenz #Electric #Sustainability #LeadinTech

Seat sold 17% fewer cars last year. Cupra grew 32.5%. Same factory. Same engine. Same company. But one is winning, and the other is shrinking. I looked at the numbers from 2025. The "middle" of the market is being slaughtered. Here is the reality: Money is expensive. I checked the current finance offers. You are looking at 6.9% to 7.9% APR for a standard car loan in Europe right now. A few years ago, it was 0% or 1%. Think about the guy buying a car today. He looks at a Seat Leon. It’s a good car. Sensible. But at 7% interest, the monthly payment is high. It hurts to pay a premium price for a "sensible" product. So the market splits. 1. The Flight to Value. People who need utility are leaving the middle. They buy a Dacia Sandero (the #1 selling car in Europe). Or they buy used. They refuse to pay interest on a badge that doesn't excite them. 2. The Flight to Emotion. If you have to pay high interest, you want to feel something. You want the status. The copper logo. The bucket seats. You stretch for the Cupra because it feels like a reward, not a utility bill. It is not just cars. Look at retail. Primark is struggling in Europe. Their sales dropped 5.7% on the continent last quarter. Why? Because Shein and Temu are cheaper. Primark got stuck in the middle - not cheap enough to beat the Chinese apps, not premium enough to be a brand. The lesson for 2026: The "safe middle" is the most dangerous place to be. High interest rates expose boring products. If you are selling something this year, you have two options: Be the absolute cheapest. Or be the one they dream about. Everything in between is disappearing.

For the first time in our Future Readiness Indicator's history, Tesla has lost its top position to BYD, scoring 98.1 to BYD's perfect 100. But this historic power shift isn't an anomaly. Instead, it’s the culmination of years of strategic patience and relentless innovation from Chinese manufacturers. Here's how the automotive competitive landscape has fundamentally transformed in 2025: BACKGROUND: Traditional automotive manufacturers are in crisis. Stellantis, VW, BMW, and Mercedes have reported declining revenues while Chinese EV makers like BYD, XPeng, and Li Auto are experiencing substantial growth. We've spent years analyzing why this historic power shift is happening: - Chinese EV makers aren't just winning on cost—they're reimagining cars as "computers on wheels" - BYD's R&D intensity grew 23.35% (3Y CAGR) while obtaining 1,880 new patent authorizations last year, a 113.64% increase compared to 2023 - Traditional OEMs are stuck in hardware-centric models with 5-7 year development cycles - EV makers iterate in 18-36 months with startup-style organizations In 2019, I would have bet on Tesla maintaining dominance indefinitely. Their software-first architecture gave them a seemingly insurmountable advantage. But Chinese manufacturers didn't try to beat Tesla at its own game. They played the long game. XPeng adopted an "experience-first" strategy, designing user interfaces and autonomous features before mechanical elements. Li Auto's rapid iteration cycle meant yearly upgrades incorporating real-time customer feedback, while incumbents were still retooling factories. And BYD? While Tesla stagnated (-9.4% Q1 2025 sales growth), BYD's revenue grew 52.8% (3Y CAGR) with inventory turnover at 6.17—operational excellence at scale. The lesson is clear: EVs are becoming commoditized, but software ecosystems and rapid iteration cycles are not. For automotive executives, this means three essential strategic shifts: 1. Treat cars as "computers on wheels" where software features and rapid updates are paramount 2. Build supply chain agility with digital tracking systems and localized production of critical components 3. Invest in brand differentiation; as technology becomes commoditized, trust will determine winners The most important insight from our research: future readiness is never a finished state but a continuous process of adaptation. Even market leaders can be challenged when competitors commit to the long game. The race is far from over, but the rules have fundamentally changed.

Manufacturing Sector Shrinks for Sixth Straight Month   Manufacturing, which was supposed to be the biggest winner from tougher trade policies, remains stuck in reverse. The sector has now contracted for six months in a row, the Institute of Supply Management reported.   Some production has returned to U.S. soil, but optimism and investment are fading fast. Spending on new factories is sliding, weighed down by uncertainty over tariffs and supply chains that remain deeply global. Cutting off just a couple of foreign suppliers has been enough to squeeze many domestic firms.   Construction tells the story: outlays on new manufacturing sites fell again in July, extending a six-month slump. After a three-year boom under the Chips and Science Act, the momentum has vanished. Since the start of 2025, factory construction spending is down more than 7% from its peak.   We expect the sector to remain in a difficult position in the second half of the year as uncertainty lingers. Barring any new shock, it is unlikely the market will gain meaningful clarity until at least the second quarter of 2026.  

The annual list of the automotive industry's top suppliers has shown a noticeable shift this year. ✅ For the first time, a number of battery manufacturers have been included for electric vehicles, highlighting a key structural shift in the sector. 🟢 This underscores how electrification is transforming the value chain and priorities for OEMs. ✅ Increased demand for electric vehicles is forcing traditional manufacturers to adapt, and those that supply batteries and components for EVs are rapidly gaining relevance. 🟢 What used to focus on mechanical parts is now increasingly leaning towards technology and energy, showing that solutions for sustainable mobility are the new axis of innovation. ✅ This move also suggests that companies that previously led the market could lose ground if they fail to incorporate electrical components into their product lines. 🟢 In addition, the entry of new players, especially from the battery sector, could further accelerate the transition to a market where technology and electrification are the focus. ✅ It is clear that, in this new era, those who do not bet on electrification will be left behind. #AutomotiveIndustry #Electrification #Innovation #Sustainability #OEM #ElectricVehicles #Automotive #eMobility #Batteries #EV

🚗 “How We Designed A White-Label In-Car Infotainment System” (https://lnkd.in/eDNU_xFK), a fantastic case study on the entire process to design an infotainment design system for cars — from scratch. Kindly shared by Casper Kessels. 🤔 Carmakers overvalue how much drivers care about infotainment. ✅ Treat infotainment as a kitchen appliance: easy to use, not disruptive. ✅ Safety first: having all controls on a touch screen is unsafe. ✅ The armrest design in cars affects tap precision on displays. ✅ Large touch targets: minimum 80×80px; better: 100×100px. ✅ Design for 3 contexts (or modes): driving, parked and away. ✅ In park mode, we can reduce sizes of texts and buttons. ✅ Cars are often parked in garages with poor cellular reception. ✅ App controls must communicate when the connection is poor. ✅ 3 layers of customization: screen layout, custom features, UI. ✅ Goals: minimize distraction and reduce task completion times. ✅ Simple first: climate controls, player, navigator, apps container. ✅ Then build out: app grid, parking camera, car settings (fullscreen). ✅ Enhance with customization features, menu bar, notifications. 🚫 You might not need a 3D visualization: it should be calm, not flashy. A very rare and honest read on what it takes to build up a design system with around 2000 Figma tokens to maintain a fully customizable white-label infotainment system — while keeping security, accessibility and usability a priority. Other resources all around in-car UX: Auto Interfaces Showcase, by Humanistic 👍🏽 https://lnkd.in/eTAff3w8 Skoda Flow https://lnkd.in/exWqRqi9 Porsche Design System https://lnkd.in/emjXZ8tr Audi Design System https://lnkd.in/er9PY6py Volvo Cars Design System https://lnkd.in/e-k2cWA8 Car UX Interfaces (Case Study), by GlueGlue https://lnkd.in/eYyxrUsH Automotive Interfaces UX Benchmarking, by Creative Navy https://lnkd.in/e8_CKmAt Pods: DIMO Design System (+ Figma kit) Article: https://lnkd.in/ey5bTjMs Figma: https://lnkd.in/ey9NAaEb #ux #design

When the “average” car costs $49k, we’re not just financing mobility—we’re financing anchors. #Tariffs, #inflation, and dealer markups have turned cars into rolling luxury goods. Buyers are stretching into 7–8 year loans, with $700–$1,000 monthly payments, just to drive off the lot. The risk? Negative equity for most of the loan. Rising defaults as budgets snap. Falling used car values eating collateral. Perhaps even loan portfolios overweight in auto debt. Expensive cars don’t just stretch American households—they stretch bank balance sheets. A lot of buyers don’t know how costly depreciation is and how it’s likely detrimental to their net worth. For lenders, the question isn’t “how do we book more loans?” It’s “how do we keep today’s $50k cars from becoming tomorrow’s charge-offs?” Don’t forget; 84–96 month loans lock borrowers in for nearly a decade. That slows repayment and reduces lenders’ ability to recycle capital. #communitybanking #creditunions #education #autoindustry #lending #riskmanagement #economics #usedcarmarket #automanufacturing

THE TECHNOLOGY BEHIND CHINESE LUXURIOUS SUVS AND THEIR AMAZING NEXT-GEN FEATURES. Chinese luxury SUVs now rival global brands by integrating cutting-edge technology, futuristic interiors, and performance-focused design, often at more competitive prices. These vehicles offer AI-powered smart cockpits, driven by systems like Huawei HarmonyOS or Xiaomi HyperOS, connecting seamlessly with mobile devices and smart homes. Interiors boast panoramic touchscreens, voice-controlled features, facial recognition, and augmented reality (AR) dashboards that display navigation and alerts on windshields. Many models are built on EV-dedicated platforms, with options for extended-range hybrids or hydrogen fuel cells, supporting ranges of 600–1,200 km. Advanced driver-assist technologies like Level 2+ or Level 3 autonomy, LIDAR-based adaptive cruise, smart parking, and auto lane change elevate safety and comfort. Cabin features include massaging seats, ambient mood lighting, air purification, fragrance diffusers, and ultra-quiet noise cancellation systems. Designs emphasize sleek aerodynamics, intelligent LED matrix headlights, retractable handles, and flush glass designs for a premium feel. Top-tier models integrate self-learning AI assistants, gesture control, child monitoring systems, and even emotion-based cabin response systems. Some SUVs offer roof solar panels, 4D surround audio, and drone launch pads for high-tech adventure. Their sustainability profile includes vegan leather interiors, recycled materials, and battery thermal management systems for safe, green operation. China’s automakers focus on offering premium experiences at accessible price points, capturing global attention and growing exports. These SUVs are ideal for tech-savvy professionals, families, business travelers, and luxury-conscious urban drivers. Top 12 Chinese Luxury SUVs with Brands & Price Range: Nio ES8 – $68,000 – Electric 6/7-seater with Nio Pilot ADAS HiPhi X – $90,000 – Ultra-premium EV with wing doors, AI cabin BYD Tang EV – $48,000 – AWD performance, DiPilot smart system Hongqi E-HS9 – $75,000 – Full-size luxury EV SUV, 4 screens, massage seats Voyah Free – $55,000 – EV/EREV with panoramic display and smart air suspension AITO M9 (Huawei-backed) – $65,000 – HarmonyOS cockpit, LIDAR self-drive Lynk & Co 09 – $50,000 – Volvo-powered luxury plug-in hybrid Xpeng G9 – $60,000 – 800V fast charge, full-stack autonomy Zeekr 001 FR – $68,000 – High-performance SUV coupe with AI cockpit Avatr 11 – $70,000 – Huawei & CATL co-developed luxury EV Leapmotor C11 – $35,000 – Affordable luxury, smart infotainment Seres 5 – $45,000 – Stylish premium EV with performance DNA China’s luxury SUVs blend innovation, elegance, and eco-conscious power—proving the future of upscale driving is already here.