At R&S, we do whatever it takes to serve our customers well. And it is no different with our automotive manufacturing customers, which makes staying on top of automotive industry trends an important priority. Keeping our eye on those trends for 2025 means being prepared for a variety of transformative changes driven by technological advancements, sustainability initiatives, and shifts in consumer preferences.
Here are a few of those key trends that we expect to shape the auto industry this year:
Electric Vehicles (EVs)
The shift from internal combustion engine (ICE) vehicles to electric vehicles will continue to accelerate. Growing EV usage will be driven by improved battery technology, more affordable EV options, and increased government incentives for sustainable transportation.
There will be a significant increase in the availability of fast-charging stations, which is often one of the biggest hurdles for prospective EV owners. At the Southern Automotive Conference in Chattanooga, Tennessee, the University of Tennessee Chattanooga in partnership with Volkswagon actually talked about how important it will be to build infrastructure in cities to support EV vehicles and fast-charging stations.
Not only will the number of charging stations increase, but there will also be advancements in battery technology that lead to longer ranges and faster charging times. Each one of these factors makes owning an EV more practical than ever before.
Autonomous Vehicles (AVs)
Another trend we’re expecting in 2025 is a growing number of semi-autonomous features or advanced driver-assistance systems (ADAS). These features include lane-keeping assistance, adaptive cruise control, and automated parking. As they become more common, we expect to see fully autonomous vehicles in the not-so-distant future.
To prepare for ADAs, many governments will implement regulations to support the safe usage of autonomous vehicles, including figuring out issues like liability and insurance.
Sustainability Goals
Like other industries, automotive manufacturers will use more recycled materials in their vehicle production. Materials like bioplastics and sustainably sourced metals will continue to grow in popularity as companies push towards more environmentally friendly practices.
To meet sustainability goals, many car manufacturers will work toward carbon-neutral production, with net-zero emissions goals in the supply chain and manufacturing processes.
Vehicle Design and Customization
Automakers will shift design platforms to allow for a variety of vehicle types like SUVs, sedans, trucks all from the same base. This will reduce production costs and enable companies to customize their products quicker than ever before. With the focus on the consumer, demand for personalization will enhance the car buying experience.
Supply Chain Innovations
If the global supply chain struggles in 2025, the automotive industry will undoubtedly adapt, likely by diversifying and locally sourcing components like semiconductor chips and other parts that require warehouse space. It’s also likely that companies will do more 3D printing for part manufacturing, which would greatly reduce time and cost of production.
Speaking of, this may also mean more manufacturing is brought back home. When manufacturing is kept within a country instead of off-shoring to a foreign country, it’s called nearshoring. We anticipate seeing more near-shoring manufacturing operations in the U.S., especially with uncertain political climates across the world and bigger macro-economic factors at play.
New Partnerships
Tech giants like Apple, Google, and Amazon are starting to enter the auto industry. As we get into 2025, expect to see these companies develop new technologies that lead to partnerships with well-known automakers. These partnerships will continue to pave the way for innovation in EVs and AVs.
In the end, these trends and possibilities will not only impact the logistics industry but also the need for warehousing. At R&S, we’re excited about these possibilities in the transportation world. With our 10+ years of experience working with automotive manufacturers, you can trust us with your business in the years ahead.
