Top Five Mobility and Automotive Trends in 2021

TOP FIVE MOBILITY AND AUTOMOTIVE TRENDS IN 2021
January 2021
Scope
▪ The report examines the top five trends expected in 2021 across the mobility and Disclaimer
automotive industries. Much of the information in this briefing
is of a statistical nature and, while
every attempt has been made to
ensure accuracy and reliability,
Euromonitor International cannot be
held responsible for omissions or
errors.
Figures in tables and analyses are
calculated from unrounded data and
may not sum. Analyses found in the
briefings may not totally reflect the
companies’ opinions, reader discretion
is advised.
2021 will be a big year in the

mobility and automotive industries
after a challenging 2020 due to the
COVID-19 pandemic. Some of the key
trends predicted in 2021 include the
growing electrification of vehicles;
the adoption of micro-mobility such
as electric scooters and bicycles; the
increasing consumer movement
towards online car purchases; the
growth of connected car technologies
and the surging investment in
augmented and virtual reality.
© Euromonitor International TOP FIVE MOBILITY AND AUTOMOTIVE TRENDS IN 2021 PASSPORT 2
Scope
Electric vehicle sales to In 2021, electric car purchases will continue surging, recording 46% growth across the
boom world’s major consumer markets fuelled by rising consumer awareness of climate
change, expansion of affordable electric vehicle options and increasing curbs on the use
of internal combustion engine cars. China will be the major electric car growth market,
recording 77% year-on-year growth in 2021.
Micro-mobility will In 2021, micro-mobility modes such as electric scooters and electric bicycles (as well as
become more their respective sharing systems) will become more pervasive and popular as modes of
important in transportation. This will come as certain consumers will reduce or completely
commuting discontinue public transport or other enclosed mobility in favour of open-air solo
mobility.
Online car sales to In 2021, automotive makers will increasingly adopt online sales channels. The COVID-
provide additional 19 pandemic accelerated the move to online and this is likely to become a permanent
revenue source change in 2021 as restrictions on face-to-face contact are likely to continue.
Connected cars to In 2021, connected car technologies will become even more popular as the demand for
benefit from 5G rollout data-driven decision making will surge. The increasing number of countries rolling out
5G internet will aid in faster and more sizeable transmission of data, providing users
with telematics, infotainment and other personalised applications and features.
VR and AR to improve In 2021, virtual and augmented reality will increasingly become utilised by car
business processes and manufacturers and dealers across various business functions including design, testing
greater consumer and selling. VR showrooms will become popular, providing customers with more
experience immersive experiences at a relatively small cost to dealerships.
Sustainability push will drive record electric vehicle sales in 2021
▪ In 2021, electric vehicle sales will continue to rocket 10 Largest Markets for Electric Car
despite the COVID-19 pandemic. Across 46 key global Registrations, 2020-2021
markets, electric vehicle registrations will rise by 46%, 90
China
adding a total of 2.9 million vehicles. Increasingly
stringent CO2 emissions standards, greater availability 80
of affordable electric car options, government
United
subsidies towards electric car purchases and growing 70
Kingdom
consumer awareness of climate change are driving the
60
move to electric. For example, in China, consumers are South Germany
opting for electric vehicles due to easier access to car Korea
50 Italy
% growth
licence plates, government subsidies and lower vehicle Spain
prices. Netherlands
40
Bubble size
▪ Among the three major classes of electric vehicles:
USA
battery electric vehicles (BEVs), plug-in hybrid electric 30
France 1 million
vehicles (PHEV) and hybrid electric vehicles (HEV),
BEVs will display the fastest level of growth. For 20
500,000
example, in Japan, the second largest global market for Japan
electric vehicles, BEVs will see a 352% rise in 10

100,000
registrations compared with a 26% growth for PHEVs
and just 9.3% increase for HEVs. The difference in 0
0 300 600 900 1,200 1,500
growth is largely due to a lower base, improving Absolute growth (‘000)
electric charging infrastructure, increasing driving
Source: Euromonitor from trade sources/national statistics
range of BEV vehicles and falling cost of battery packs. Note: Bubble size represents electric car registrations in 2020.
Key market players in the electric vehicles industry
Tesla
• Tesla is among the most popular electric vehicle brand. According to EV-Sales
blogspot a, website tracking global sales of electric vehicles, by the end of October
2020, Tesla held an 18% market share in electric vehicle sales, ahead of its closest
rival, Volkswagen, BYD and BMW (all with 6%). It recorded sales of 316,820 for the
year to 30 October 2020, compared with 113,091 for Volkswagen and 103,176 for
BMW.
BYD
• BYD Co Ltd is China’a major electric vehicle manufacturer. It was consistently ranked
as the world’s largest seller of electric vehicles over 2014-2019. With a 6% global
market share and having sold 104,176 electric vehicles by the end of October 2020, it
is among the largest manufacturers globally. The company is not limited to the
electric passenger car market as it also manufactures electric buses, vans, coaches
and trucks.
Nio
• Nio is a relatively new electric vehicle manufacturer and does not feature the volumes
produced by the likes of its competitors such as Tesla and BYD Co Ltd. The company’s
battery-as-a-service (BaaS) strategy is likely to underpin its success by offering
customers more personalised battery options while also reducing the initial cost of
its cars. The company has also benefited from state-backed investment worth USD1
billion in 2020 to prop up its manufacturing base and compete with the largest firms.
Micro-mobility will gain edge over other forms of travel in 2021
▪ 2021 will see micro-mobility becoming an even more Share of Gross Booking Value by
popular choice of travel. Physical distancing measures and Shared Mobility Mode, 2020
safety fears within enclosed travel modes such as public 1%
4%3% Ride Hailing
transport and car sharing have resorted to people becoming 5%
Car Sharing
more disposed to using solo open air micro-mobility such as Ride Sharing
electric scooters and bicycles. Taking into account the first- Bike Sharing
and last-mile challenges consumers can typically fall prey to, Scooter Sharing
micro-mobility offers a much more affordable and efficient
method of travel when compared to other modes such as car 87%
driving or public transport. In addition, the relative low
expense of micro-mobility or their respective shared services Source: Euromonitor from official sources, trade associations, trade
press, company sources
may drive usage, especially given the negative impact of the
COVID-19 pandemic on consumer incomes. Gross Booking Value Growth by Shared
▪ Regulatory issues have been a key challenge for micro- Mobility Type, 2020-2021
mobility companies. Yet many governments have become
Scooter Sharing
more supportive of this idea and this is expected to further
Ride Sharing
progress the uptake of micro-mobility. For example, in July
Ride Hailing
2020, the Department for Transport in the UK legalised usage
Bike Sharing
of rented e-scooters. This has been followed with a 12-month
Car Sharing
trial of electric scooter sharing systems in London this year
involving various city councils. New York has also legalised 0% 50% 100% 150% 200%
% growth
electric scooters and electric bicycles earlier in 2020, with a
Source: Euromonitor from official sources, trade associations, trade
pilot programme scheduled to start in May 2021. press, company sources
Key market players in the micro-mobility industry
Lime
• Lime introduced its fourth-generation electric scooter, equipped with a swappable
battery, stronger frame for durability and improved safety features which the
company claims will help it become profitable. The company has also partnered with
the electric bicycle sharing firm, Wheels, allowing its customers to rent bicycles using
the Lime app, allowing the company to offer more flexible and sustainable travel
options.
Niu
• Niu Technologies is a Chinese electric scooter company that has seen a surge in
demand for its mobility solution. In China, the company recorded 41% year-on-year
growth in the fourth quarter of 2020 while international sales surged by 180% in the
same period. According to the company, the need for individual mobility is pushing
ahead the surge in sales and this is likely to continue in 2021.
VOI
• VOI, the Swedish electric scooter sharing company, is one of the leaders in European
micro-mobility. By July 2020, the company was present in 40 cities across Europe
including Rome, Madrid and Oslo. In December 2020, VOI was boosted by EUR132
million funding which will be used to invest in platform development, deepen
exposure in current markets and invest in its new scooter model, Voiager 4 equipped
with indicators, IoT hardware GPS technology and other features.
Online car sales to make accelerate in 2021
▪ In 2021, online car buying will surge - a trend that has been Global Car Purchase Channel
accelerated by the COVID-19 pandemic. Online car sales were growing 2020
prior to the COVID-19 pandemic with Tesla being one of the few major
Did not purchase
manufacturers providing this option, but other firms are likely to
digitalise their sales channels too as a new market emerges due to In store/in person
limited consumer mobility and face-to-face contact. For example, a
Computer or tablet
New York car dealer, Paragon Honda reported approximately 70
online vehicle sales prior to lockdowns in March 2020; however, in Smartphone
April 2020, the dealer recorded a fivefold rise as movement
0% 20% 40% 60%
restrictions led to a digital shift. Also, Ford is expected to launch its Share of respondents
online used car platform, Ford Blue Advantage in 2021 linking over Source: Euromonitor from the Mobility Survey 2020
3,100 dealerships across the US on a single website. According to Ford
its used car market is an important source of revenue for dealerships. Global Car Purchase with a
▪ Restrictions on movement and face-to-face contact has mandated Smartphone by Age, 2020
firms to innovate by digitalising their sales processes, in an industry
Aged 18-29
that has typically relied on a physical visit to a dealership. While the
move to online is expected to be more popular in the used car market, Aged 30-44
new online car sales are expected to surge in 2021 too. Global
Aged 45-59
passenger car sales plummeted to 76.6 million in 2020, falling by 13%
year on year and reached its lowest levels since 2011. However, 2021 Aged 60+
should see sales pick up by 9.2%, reaching 83.7 million with rising
0% 10% 20% 30%
online sales expected to contribute to the share of vehicles being sold
Share of respondents
globally especially in highly digitalised markets. Source: Euromonitor from the Mobility Survey 2020
Key market players in the online car sales market
Peugeot (PSA Group)

• Peugeot was among the first companies to set up an online platform for buying cars.
Customers can personalise their cars, choose a range of financing options and secure
a part-exchange valuation for their existing car. According to PSA Group, it is targeting
100,000 units of Peugeot, Citroën, and Opel online sales in 2021 without the need for
the customer to show up at a showroom.
BuyaCar
• The online car retailing platform has experienced a surge in interest from consumers
intending to buy online, reporting 100% year-on-year revenue growth over 2014-
2019. According to a survey carried out by the company in 2020, one in 10 people
were planning on purchasing a car online. With COVID-19 restrictions still in place,
2021 could continue to be a big year for online car sales.
Nissan@Home
• Nissan launched its Nissan@Home digital solution in seven dealerships in the US as
part of a pilot programme. According to the company, its sales close rate doubled
during the summer in 2020 at participating dealerships where Nissan@Home was
used by customers. Thanks to its success, the solution is expected to be launched
across other participating dealerships in the country in spring 2021.
Connected car technologies to surge amid 5G rollout in 2021
▪ Consumer demand for connected car technologies will Top 20: Penetration Rates of Wireless
grow in 2021 after a flat year in 2020 due to the COVID- Broadband, 2021
19 pandemic. The technology covers three broad areas: United Arab Emirates
infotainment, telematics and vehicle to everything Japan
communication (V2X). They have the ability to generate Poland
massive amounts of data about the user, the vehicle and Estonia
its surroundings; provide a myriad of entertainment Hong Kong, China
services on the go and incorporate numerous advanced Qatar
Myanmar
safety and security features. The growing rollout of 5G
Finland
internet in 2021 will further advance the connected car Uruguay
industry, providing faster and more sizeable data flows. Bahrain
▪ One of the key areas of growth is the in-car USA
marketplace and feature-on-demand services which Denmark

Singapore
allows the use of personal retail and mobility services.
Taiwan
These could potentially be of interest to automotive New Zealand
makers in the after-sales market as it could offer Australia
additional sources of revenue from advertising or sale Lithuania
of additional driving apps, software updates or even Kuwait
insurance. Additionally, improving machine learning Latvia
Saudi Arabia
capabilities and AI will have the ability to develop
personalised experience for customers thereby 0 100 200 300 400
Per 100 population
establishing new business models for automakers,
Source: Euromonitor International from International Telecommunications Union
suppliers, hardware and software firms. (ITU)/national statistics
Key market players in the connected car industry
General Motors
• General Motors (GM) boasts 20 million connected cars across 47 countries. OnStar,
first introduced in 1996, is the connected car system used to track its car fleet. The
system is able to provide a range of services to drivers, for example, if a car is
involved in an accident, the system recognises this and informs the necessary parties.
According to GM, OnStar is expected to become an important system for monetising
data with insurance policies based on driving habits already among the plans.
BMW
• The BMW Connected Drive system is the connected car system created by BMW. It
includes the vehicles own internet connection, various safety and security attributes
as well as additional features which can be purchased by clients. In July 2020, the
company carried out a comprehensive upgrade of its connected car system with
improved features for vehicle connectivity and navigation. For example, the new
BMW cloud-based navigation maps provide improved route guidance for users.
Harman
• Harman is a subsidiary of Samsung that specialises in high-end connected car
devices. It provides a range of products from hardware components to cybersecurity
and telematics systems. For example, it will supply the BMW iNext electric SUV, the
first 5G-capable car with connected car technology. The model is expected to be set
for launch in June 2021.
VR and AR to revolutionise vehicle production and selling
▪ Automotive companies will increasingly harness virtual reality Typical AR/VR Activities, 2020
(VR) and augmented reality (AR) in 2021 to enhance driver
experiences and improve business processes. Both technologies Play games
are being used in various stages of vehicle development and
procurement including, design and prototyping, production, Preview a holiday
destination
training as well as the final selling process at dealerships. For
example, Jaguar’s Virtual Reality Centre in the UK has a three- View 3D manuals
dimensional facility which allows engineers with 3D glasses to
view interior and exterior car designs. Such technologies are also Tour a potential hotel
being applied at car dealerships with VR showrooms, allowing room
customers to experiment with a plethora of vehicles while also Shop for household items
providing them with many vehicle customisation tools for a more and furniture
personalised customer approach. Visualize how clothes

might fit
▪ AR and VR’s ability to greatly reduce costs within the design,
production and sale stages will be a big draw for automotive firms Try on makeup
who are already operating on thin profit margins and
simultaneously fighting competition from alternative mobility
Other
such as ride hailing and car sharing. For example, VR showrooms
can be used by dealerships with limited space to broaden their
None of the above
vehicle offering, providing clients with greater and more
immersive exposure to possible car options. Also VR can provide 0% 25% 50% 75% 100%
an additional source of use as a testing platform for companies Share of respondents
moving into the autonomous vehicle space. Source: Digital Consumer Survey, 2020
Key market players in the VR and AR industry
Audi VR Showrooms
• By 2020, Audi had deployed more than 1,000 VR showrooms globally. One of the key
uses of its showrooms is in the selling process which permits customers to enhance
their interaction when purchasing cars and also provide a range of customisation
tools. Its VR technology is also being used in the design stage, helping to significantly
reduce the time taken to optimise certain processes.
2021 Mercedes-Benz S Class (AR-HUD)

• The 2021 Mercedes-Benz S-Class is equipped with augmented reality heads-up
display (AR-HUD) technology that provides users with a myriad of driving assistance
tools such as pointing out the edges of roads, minimum safe distance measures and
navigational assistance features. It is the first production luxury car to feature a
heads-up display using augmented reality.
Kia and Hyundai VR Car Design Evaluation System

• At the end of 2019, Hyundai and Kia developed a virtual reality facility providing
design quality assessments and collaboration between design and engineering teams
across global offices. It helps developers to review and assess numerous design
concepts in real time across various global offices - something that would have been
difficult to do beforehand. The VR system has the potential to reduce vehicle
development time by 20% and cut development costs by 15%.
Summary of key points
Electrification The sustainability push is driving companies to invest in electric technologies as

consumers, governments and businesses strive to become more socially
responsible.
Micro-mobility Commuting is no longer centred on public transport or car use. Electric scooter
and bicycle sharing systems are growing as a sustainable and cost-effective
method of commuting.
Online car sales Automotive companies are beginning to see stronger volumes of car sales being
carried out online. This has been especially accelerated during the COVID-19-
triggered lockdowns.
Connected cars The rollout of 5G internet and the desire for more sophisticated data- driven
decision making is causing a surge in interest in connected car technologies.
Augmented and Virtual representations of customary automotive processes are being carried out
virtual reality using virtual and augmented reality. This is expected to aid in helping to reduce
costs and enhancing customer personalisation.
FOR FURTHER INSIGHT PLEASE CONTACT
Fransua-Vytautas Razvadauskas
Cities Consultant
fransua.razvadauskas@euromonitor.com
linkedin.com/in/fransua-vytautas-razvadauskas/
twitter.com/mobility_cities
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TOP FIVE MOBILITY AND AUTOMOTIVE TRENDS IN 2021

2021 will be a big year in the

Sustainability push will drive record electric vehicle sales in 2021

electric vehicles, BEVs will see a 352% rise in 10

Key market players in the electric vehicles industry

Micro-mobility will gain edge over other forms of travel in 2021

Key market players in the micro-mobility industry

Online car sales to make accelerate in 2021

Key market players in the online car sales market

Peugeot (PSA Group)

Connected car technologies to surge amid 5G rollout in 2021

marketplace and feature-on-demand services which Denmark

Key market players in the connected car industry

VR and AR to revolutionise vehicle production and selling

personalised customer approach. Visualize how clothes

Key market players in the VR and AR industry

2021 Mercedes-Benz S Class (AR-HUD)

Kia and Hyundai VR Car Design Evaluation System

Summary of key points

Electrification The sustainability push is driving companies to invest in electric technologies as

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