Car production for 2019 is looking at a significant downturn, predicts major automotive parts supplier Robert Bosch Company. As Reuters reports, supplying components to car manufacturers around the world gives Bosch the unique vantage to forecast what’s coming down the pike for production needs, and they’re predicting at least a 5% drop in car production according to Reuters.
Bosch has dived heavily into electric car component development, especially in China, which will offset even further losses some other suppliers may be facing. While the company will still have plenty of revenue from that electric tech, it won’t match their 2018 margins, according to Bosch chief financial officer Stefan Asenkerschbaumer. Car production will continue to stagnate over the next three years, which doesn’t look good long-range for manufacturers facing both a drop in sales while spending billions in electrification and autonomous driving, adds Asenkerschbaumer.
It’s a brave new world in the automobile industry as consumer demands and predictions for cars’ transformation continue to change how the industry operates and prepares for the future. Globally, plug-in sales of both cars and trucks reached 2.2% of all vehicles manufactured, but graphs indicate there is a continual rise in sales that began in 2015. As electrification sees gains, the dream of autonomous vehicle use for the masses continues to be pushed beyond reach with development hiccups.
Some sources are indicating that autonomous vehicles are more than 10 years away, which is a reality not expected when in its infant stages. Predictions were placing the autonomous future beginning about now, but those plans have been dashed.
While car and sedan sales are falling and truck/SUV sales rise, manufacturers continue to shift product focus and future development on electric vehicles and the autonomous future. JD Powers first Mobility Conference Index measured tech industry leaders predictions about self-driving cars, finding they believe we are at least 12 years away before the public will be able to purchase them. They also forecasted that it will be at least 2025 before robotaxis hit the streets.
Meanwhile car manufacturers clamoring to be the lead on self-driving systems, technology and manufacturing must keep focussed on today’s consumers and their changing buying habits. Many aspects of car demands are in flux as we brace for the new world of full-electric and self-driving vehicles.