There is a bit of discussion about the concept of Peak Auto. This is entering the consciousness of those in the auto industry especially in the US, EU, and Japan.
In this video I discuss how auto sales peaked in 2017 and are below that level in these areas. What are the factors that go into this and is this something that we will see persist?
▶️ 3Speak
I surely hope not as technology can grow exponentially from here.
The slowdown in car sales doesnt mean that technology is slowing down. horses are not as prevalent as a century ago.
I don't think we have reached auto peak order.
I believe it's a temporary situation partly due to increase in cost of living
I think we have, at least for now, because of the current state of the economy. People have less available funds to buy new cars. I have seen a lot of people looking to buy older cars. If the EVs can bring down the prices, then maybe the sales can go up again.
Summary:
In this video, Task discusses the concept of "peak auto" and how the total number of new car sales is declining in the United States, Japan, and Europe, leading to speculation that peak auto sales have been reached. He explores various factors contributing to this decline, including the transition to electric vehicles (EVs), improved product reliability, and affordability issues. Task emphasizes how EVs have the potential to address affordability concerns and how advancements in technology and production could drive down costs in the future. He also touches on the role of robotics and humanoid bots in manufacturing and the challenges legacy auto companies face in adapting to the evolving market.
Detailed Article:
Task delves into the emerging concept of "peak auto" in this video, pointing out the decline in new car sales in the United States, Japan, and Europe. Despite population growth, the trend suggests a potential peak in auto sales. One significant factor contributing to this trend, as Task highlights, is the transition to EVs. While EVs offer a promising solution to sustainability and environmental concerns, their current affordability remains a barrier for many consumers. Task notes that most affordable EVs are still considered luxury items, leading some consumers to delay their vehicle purchases.
Moreover, Task underscores the evolution of vehicle reliability over the years, noting that modern cars surpass their predecessors significantly in terms of performance and lifespan. Unlike in the past, where cars needed replacement every few years due to reliability issues, today's vehicles can last much longer. This shift in product durability has altered consumer behavior, influencing the frequency of car replacements and reducing the urgency to buy new vehicles as frequently.
Affordability emerges as a critical concern in the auto industry, with Task explaining how ICE vehicles tend to increase in price over time, making them less accessible to a broader consumer base. On the contrary, EVs have the potential to become more affordable as technology advances and production scales up. Task illustrates how advancements in battery technology, streamlined production processes, and the application of Wright's Law could lead to cost reductions in EV manufacturing, ultimately driving down prices for consumers.
Furthermore, Task discusses the role of robotics and automation in the manufacturing sector, noting the potential impact of humanoid bots on production costs. While these technological advancements hold promise for cost-efficiency in manufacturing, Task acknowledges the time required to implement such changes at scale. He points out that despite the potential benefits of automation, it may take several years before the full impact is felt in the industry.
In conclusion, Task raises thought-provoking questions about the future of the auto industry, particularly in terms of adapting to changing consumer preferences, affordability challenges, and technological advancements. The concept of "peak auto" serves as a focal point for exploring the complex dynamics shaping the automotive market and the potential pathways for industry players to navigate these shifts successfully.
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