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Pages:
2 pages/β‰ˆ550 words
Sources:
2 Sources
Style:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 8.64
Topic:

Sigificant Changes in the Auto Industry

Essay Instructions:

The auto industry is currently undergoing a few significant changes around the world. Three of the most significant changes happening now and likely to evolve further are:
Development and popularity of ride-share services like Uber
Development and increasing adoption of electric vehicles (EVs)
Development of autonomous driving
On top of the above three industry-specific trends, other long-term socio-economic trends are happening in almost all parts of the world.
In addition to these long-term trends, supply-chain issues have also impacted the last two years. Please keep those in mind as you develop your thoughts and answers to this assignment.
It is 2023, and a major global car company has hired you to help them estimate the overall market size (in units) for light vehicles (cars, SUVs, and light trucks) in the US in 2035.
As you can imagine, the three significant changes mentioned above (and socio-economic trends) will significantly impact the overall market size of light vehicles.
Using no more than 500 words, please estimate the market size for light vehicles (in units) in 2035 in the US and explain the rationale behind your estimate based on the three factors above plus socio-economic trends.
Of course, you need to submit your estimate as “number of units” (or a reasonable range). But this exercise is more about reasoning and logic and how you will factor in all the key factors (especially the primary three factors listed above) that will influence the market size 12 years from now. So please give your reasoning clearly that shows your understanding of how various vital factors will affect the future market size for light vehicles.
If you make any assumptions (which you will most likely make), please state the same. Please cite any external sources of data/information you use to write this assignment paper.
Historical (1976-2021) sales data of light vehicles in the US is shown below. I downloaded this from Statista.com (https://www(dot)statista(dot)com/statistics/199983/us-vehicle-sales-since-1951/Links to an external site.)
I was also able to obtain 2022 numbers from a different section of Statista, and have added them to Excel (on myCourses).
More helpful information on this assignment has been loaded into the modules section of your course page, such as helpful graphs, etc.

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I will estimate the overall market size for light vehicles in the US in 2035 based on the three significant changes in the auto industry and long-term socio-economic trends. Ride-share services have gained popularity over the last decade and are expected to continue growing. According to Statista, the global ride-hailing market was valued at $108.32 billion in 2019 and is projected to reach $185.12 billion by 2025 (Ride-Sharing & Ride-Hailing Market Research Report, 2022). As more people opt for ride-sharing services, the demand for personal vehicles could decline. However, this trend may not significantly impact the light vehicle market size since ride-sharing services are mainly used for short trips and do not replace the need for personal vehicles entirely (Ride-Sharing & Ride-Hailing Market Research Report, 2022). Therefore, the assumption is that ride-sharing services will have a negligible impact on the overall light vehicle market size in 2035.
Next, let's consider the increasing adoption of electric vehicles. Electric vehicle sales have been on the rise in recent years, driven by concerns about the environment and fuel efficiency. The Biden administration has also proposed an ambitious plan to transition to electric vehicles, which includes incentives for EV purchases and investment in charging infrastructure. According to a report by BloombergNEF, EVs will account for 58% of new passenger car sales by 2040 (Ride-Sharing & Ride-Hailing Market Research Report, 2022). Therefore, I assume that the adoption of electric vehicles will continue to increase in the future and will significantly impact the overall light vehicle market size. However, since EVs are still relatively expensive and require significant infrastructure investment, I assume that the overall adoption rate will be slow. Therefore, I ...
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