New electric vehicles (EVs) without a bed also made the news with Lucid making an offensive with its impressive Air sedan. Dodge introduced the first American electric muscle car in the Charger SRT Daytona while a host of Mercedes-EQ EVs hit the street.
Supply chain issues continued but EV infrastructure improved with several partnerships with charging companies. Home chargers became in demand.
As the end of 2022 nears, the Newsweek Autos team rounded up some of its favorite analysts from across the country to weigh in on what 2023 might bring.
Will there be more cars on dealer lots in 2023?
“We will see ongoing supply chain issues keeping production back in 2023, though inventory should be in a better space than in 2022,” Stephanie Brinley, assistant director of research and analysis at S&P Global Mobility told Newsweek.
“S&P Global Mobility forecasts U.S. sales will reach 14.7 million units next year. This puts the market below 17 million units for the fourth year in a row, which leaves pent-up demand.
“However, economic conditions are also expected to dampen some of the pent-up demand as well. Though there will still be constraints on inventory and production, we may see fewer people looking for a new car in 2023. Overall, 2023 is going to be a stronger sales year than 2022, but it’s still a comparatively weak U.S. light-vehicle market.”
Consumers might not want the cars being made.
“The last couple of years have seen supply issues constantly in the headlines, with semiconductor chips at the center of the auto industry’s hardship in procuring adequate supply to meet new vehicle demand. As a result, the industry has seen sales crater, but not due to a lack of demand,” said Ed Kim, president and chief analyst at AutoPacific.
“2023 may prove to present a new angle to these ongoing challenges. There are some indications that various supply chain issues may be easing, particularly with China easing its COVID Zero policy that has exacerbated the supply chain crisis.
“As a result, we are likely to see much-improved supply in 2023. However, with economic headwinds due to an almost certain recession in 2023, it is quite possible that the increase in supply may coincide with a drop in consumer demand for new vehicles as tough economic conditions may put new vehicle purchases on the back burner for many would-be shoppers.
This will challenge the industry as supply chain issues could be replaced with reduced demand as automakers work to return to pre-pandemic sales volumes.”
The Tesla Cybertruck is coming, probably.
“EV pick-up trucks will still be a theme in 2023, as we should have Chevrolet Silverado EV, GMC Sierra EV, and Tesla Cybertruck on sale by the end of the year, and Ford works to increase the capacity of the F-150 Lightning,” Brinley predicts.
“For new EVs, we expect to see entries on sale from traditional and new brands, including BMW, Chevrolet, Fisker, Polestar, Volvo, Chevrolet, Lexus, and VinFast. Startups in the commercial van space targeting sales in 2023 include Arrival and Canoo.”
Subscriptions are the way of the future.
“Those heated seats you love? That trick navigation system with real-time updates that you depend on? Even that horsepower boost to your new EV or the safety of a hands-free driving system? All are potential subscription targets for automakers,” David Undercoffler, editor-in-chief at Autolist explained.
“Brands like Stellantis, Ford, and GM each see billions (yes with a B) in annual revenue from vehicle subscriptions by the end of this decade. This, despite consumers’ clear preference to pay upfront for the features, according to our Autolist survey. Thanks to over-the-air updates, these features can be turned on or off with the click of a mouse back to Automaker HQ. You’ve been warned.”
People still want SUVs and vans.
“Though Honda is launching a new Accord and a new Kia Rio is expected late in the year, new vehicles in 2023 will favor utility vehicles yet again, and sedan share of the market is forecast to continue to slip, falling from about 16 percent in 2022 to just under 15 percent in 2023, while the share for both utility vehicles and pick-up trucks each increase slightly. We’ll see a small increase in van sales as well, specifically driven by delivery vans,” Brinley said.
General Motors will grab the spotlight in 2023.
“GM has been in the news a lot as it readies its plethora of Ultium-based EVs. For all that press, GM currently only has three EVs for sale in the US: the subcompact entry level Bolt (in EV and EUV guises), the mid-luxury Cadillac Lyriq, and the six-figure GMC Hummer EV. 2023 is the year that GM will finally start rolling out its mainstream Ultium-based EV models in the U.S.,” said Kim.
“The Chevrolet Equinox EV promises to make a splash as an attractive and affordable electric family crossover starting at around $30,000, and the Chevrolet Blazer EV promises more room and fantastic styling for a bit more money.
“The Chevrolet Silverado EV and the GMC Sierra EV will also launch in 2023, responding to Ford’s success with the all-electric F-150 Lightning. These are mainstream volume EV offerings that will put GM to the test as the much ballyhooed Ultium EV tech makes its way to the most relevant and high volume automotive segments.”
EV market foundations are laid, but business won’t boom.
“Next year will continue to see the foundations for a successful transition to an EV-dominated market being built, but it won’t be a pivotal year itself,” Brinley predicts. “Though the Inflation Reduction Act has several elements that will support EV sales growth, including the potential for tax credits to consumers, the conditions mean that the more significant impact will be later in the decade, as automakers invest to address the regional sourcing requirements.
“The infrastructure bill that allocates funding for increasing the EV charging infrastructure will also take some time to have impact, as it will take time to build out the charging stations.”
Three-row electric SUVs will be big news in 2023.
“AutoPacific’s research has consistently shown that Millennials are more excited about EVs than older generations. Millennials are also now in their peak family-raising years,” Kim shared.
“Three-row SUV sales are largely powered by Millennial parents as a result. However, there has been a distinct lack of three-row all-electric SUVs (other than the six-figure Tesla Model X) in the market to feed the demands of Millennial families who want to go electric.
“That will change in 2023 as three-row electric SUVs will hit the market. Hyundai will release its IONIQ 7, Kia will launch the EV9, and VinFast will bring its VF9, with even more three-row electric models coming in 2024. These vehicles are important as they will feed the powertrain and people-carrying demands of many members of the largest population cohort in the U.S.”
More Google
“Sure we all know about Apple CarPlay and Android Auto. But, 2023 will see a sharp increase in the number of new vehicles that have Google Built-In. 2023 will see brands like Honda, Ford, Chevy & GMC, and Volvo all offer this in-dash suite of services, which bundles Google Maps, Google Assistant, and Google Play right into the infotainment system of the vehicle,” said Undercoffler.
“Log into it with your normal Google account, and your entire history is connected via the car itself, rather than your smartphone.”
Prices aren’t going down anytime soon.
“Throughout the year, we could see incentives tick up slightly, but there is likely little reprieve for overall vehicle prices,” Brinley predicts.
