0:53
- ABC News
- December 27, 2023
2023's shocking automotive trends
The past year was full of surprises for automakers and consumers alike.
0:53
Acura's new Integra Type S only comes with manual transmission option, similar to Honda's Civic Type R. That has not slowed down sales of the Integra; in fact, dealers have been called out for heavily marking up the MSRP. The sporty sedan produces 320 hp from a turbocharged 2.0-liter engine, an increase of 120 hp over the previous version.
![\"PHOTO:](\"http://a.abcnews.com/images/Business/072024AcuraIntegraTypeS_1703258831374_hpEmbed_3x2_384.jpg\")
Toyota has also listened to enthusiasts' cries over the lack of manuals on the market: its GR Supra, GR Corolla and GR86 models were designed specifically for manual fans. BMW recently said it would bring back the manual transmission for its 2024 Z4 M40i model (which has the 3.0-liter inline six-cylinder engine variant).
Owning a manual is so much more than saving $1,200 versus an automatic transmission, said Jominy.
\"They're more fun and they're coming back,\" he said. \"Their strength has been underreported. Hopefully manuals will hang on a little longer.\"
'Humble' hybrids are in demand
More Americans are willing to try electrification -- but with a caveat. Enter the lowly hybrid. Partially electrified vehicles are seeing massive demand and interest from motorists who are not 100% ready for a fully electric conveyance.
\"Sales are taking off for the humble hybrid,\" Ivan Drury, director of insights at Edmunds, told ABC News. \"You'd be hard-pressed to find a hybrid -- they're almost all sold out. They're vehicles for people who want to live their life with more benefit and less complexity.\"
Market share of hybrids rose to 9.7% in November from 4.9% the year prior, according to Edmunds data. Moreover, hybrids are selling faster and at less of a discount than both EVs and gas-powered models.
The new Toyota Prius, which gets an estimated 57 mpg, has been helping to lead this hybrid renaissance. Sexy and highly efficient, the Prius is now nearly as hard to get as a six-figure sports car. Toyota, a longtime advocate and pioneer of hybrid technology, also makes a hybrid Corolla, Camry and RAV4.
![\"PHOTO:](\"http://a.abcnews.com/images/Business/prius-ht-gmh-231222_1703258414900_hpEmbed_23x15_384.jpg\")
Honda has been reporting record sales of its new Accord Hybrid model. Luxury plug-in hybrids, like the Volvo V60 Recharge and BMW XM, are becoming the preferred choice for consumers conscious of carbon emissions.
\"It's kind of remarkable how well hybrids are doing,\" said J.D. Power's Jominy. \"Hybrids are a well-priced option and have a real advantage at a dealership. The messaging of hybrids [and the tech] is so much simpler for consumers to digest.\"
![\"PHOTO:](\"http://a.abcnews.com/images/Business/volvo-ht-gmh-231222_1703258414106_hpEmbed_4x3_384.jpg\")
Joe Eberhardt, president and CEO of Jaguar Land Rover North America, said the company is seeing unprecedented demand for its PHEV sport utility vehicles.
\"There is so much demand globally that we can't fulfill it,\" he told ABC News. \"We sell every PHEV we get. We could sell so much more.\"
Tesla opens its Supercharger network
Tesla's Supercharger network cannot be beat; it's reliable, fast and relatively painless -- all reasons why Tesla's dominance over competitors persists. The auto industry was stunned when Tesla said it would open its network to non-Tesla EVs starting next year with at least 7,500 fast chargers. What's even more shocking may be the decision by nearly every automaker to move to a unified, connector standard like NACS (North American Charging Standard), also known as the standard Tesla charger.
Kim of Auto Pacific said a standard connector among nearly all EVs could still cause headaches for drivers when charging on the go.
\"Moving to a unified connector standard won't solve the reliability issues we're seeing with non-Tesla public chargers,\" he said. \"A standardization of connectors is not the silver bullet.\"
![\"PHOTO:](\"http://a.abcnews.com/images/Business/tesla-supercharger-gty-gmh-231222_1703260504939_hpEmbed_3x2_384.jpg\")
Right now, Tesla's Supercharger network is a closed ecosystem that supports just four models, Kim argued. What happens when that number triples?
\"The key to a seamless and good charging experience is software and we don't know how well Tesla's software is able to deal with a multitude of vehicles,\" he said.
Jominy said recent sales of EVs may be slowing until new models are built with the NACS plug and not the Combined Charging System (CCS) plug that are found in non-Teslas and require an adapter for charging.
\"Who wants a a CCS plug?\" he said. \"Tesla's Supercharger network is so fantastic.\"
Consumers keep buying new cars
High inflation, recession worries, two global wars -- none of that mattered much to U.S. consumers. Sales of new trucks and cars largely beat industry expectations in 2023, even with an average APR of 7.4% and double-digit increases in MSRP. New sales are expected to reach 15.5 million this year.
\"The strength of the consumer and the lack of a recession shocked me,\" said Jominy. \"Dealers are selling more cars even with the lack of affordability.\"
![\"PHOTO:](\"http://a.abcnews.com/images/Business/car-dealership-gty-gmh-231222_1703261455428_hpEmbed_14x9_384.jpg\")
The average listing price for a new vehicle was $47,456 in November, according to Cox Automotive. For luxury vehicles, the average price paid in November was $63,235.
Drury, of Edmunds, pointed out that luxury vehicles are more likely to sit on dealer lots than vehicles priced under $50,000, a reversal from 2021 and 2022.
\"Expensive cars were moving at a faster clip previously,\" he said. \"It seems people are going back to their normal routine and normal considerations.\"
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