As car companies adjust to new trends in 2025, many big brands are rethinking what they offer.
For example, companies like Honda, Nissan, and Mitsubishi are hoping to work together, while more people are choosing hybrid cars. Automakers are trying to stay ahead of the competition and still reach their goal of making more electric vehicles.
But they have some challenges, like tough competition from Chinese car brands, changing rules, and slower-than-expected sales of electric cars in 2024.
All of these changes might make the car market in the U.S. look different in 2025, according to experts who shared their thoughts with Automotive Dive. If you’re following the latest auto repair industry insights, it’s clear that these trends will affect not just car sales but also the service side of the business.
Let’s dive into it!
Auto Repair Industry Insights
Here are five of the top trends that could shape the future of cars in the next year.
1. The Expansion of the Hybrid Vehicle Market
As electric vehicle (EV) sales experience a slight slowdown, automakers are shifting focus to hybrid models, which provide an eco-friendly solution without compromising on affordability or fuel efficiency.
Here are some key developments:
Car Companies Focus on Hybrid Vehicles Amid Slowing EV Sales
As sales of electric vehicles (EVs) slow down a bit, car companies are focusing more on making hybrid cars that are better for the environment. These cars can help meet stricter rules on pollution while also offering buyers a good balance of lower prices and better gas mileage.
Continued Investment in Electric Vehicles Despite Policy Uncertainty
Even though there’s talk that the Trump administration might end the federal EV tax credits that have helped sales, car companies are still going to keep working toward their goal of making more electric cars. They’ve spent billions of dollars on new factories, including building battery plants with other companies. In the meantime, they’ll keep offering a mix of both hybrid and fully electric vehicles as the market for EVs grows.
Consumer Demand Drives Increase in Hybrid Car Production
Stephanie Valdez Streaty, Director of Industry Insights at Cox Automotive, shared that we’re seeing changes in what car makers are making to match what people want, including more hybrid cars. She also said that by 2025, we expect that one in four cars sold in the US automotive market will have alternative powertrains, like hybrids or electric motors.
Top-Selling Hybrid Cars in the U.S. Showcase Growing Popularity
Some hybrid cars are already really popular. In 2024, the top three best-selling hybrid cars in the U.S. were the Ford F-150 hybrid, the Toyota RAV4, and the Honda CRV, according to Business Insider.
2. Could Reduced Battery Costs Drive Both Profitability and Increased Adoption?
Battery prices for electric vehicles (EVs) are dropping, which could lead to cheaper EVs in the next few years.
In November 2023, the cost of lithium-ion battery packs hit a new low of $139 per kilowatt-hour (kWh), and since then, the price has dropped even more to $115 per kWh. Experts predict that by 2026, battery prices could fall to about $80 per kWh. This would make EVs as affordable as regular gas-powered cars in the U.S., without needing government help.
Growing EV Market and Advancements in Technology
In 2025, new EV sales are expected to keep growing, with markets reaching over 10% of total sales. Stephanie Valdez Streaty from Cox Automotive said that the increase in new EV models, better charging stations, and better battery technology will help more people buy electric cars.
Hybrid Vehicles and Consumer Preferences
Besides EVs, hybrid vehicles are also becoming more popular and are making up a larger share of car sales. Car companies are releasing more hybrid models to meet this demand. Ryan Robinson, automotive research leader at Deloitte, talked about how hybrid cars are growing in popularity, while EV adoption is still slower than expected. Also, 52% of people in the U.S. said they’re worried about self-driving robotaxis in their neighborhoods.
Shifting Landscape for Auto Repair Shops
These changes in the car market will affect the auto repair industry as well. With more hybrid and electric cars on the road, auto repair industry insights suggest that service shops will need to adjust to the growing number of these vehicles. The US automotive market is shifting, and repair shops will need to keep up with new technology and trends.
3. AI and Hands-Free Driving Are Shaping the Future of Cars and Auto Repair
Tesla’s Full Self-Driving feature is getting a lot of attention, and other car companies like GM, Ford, Lucid Group, and Rivian are also working on their hands-free driving technology.
GM’s Super Cruise and Ford’s BlueCruise are two examples of hands-free driving systems that are already working on many roads in the U.S. Experts say that as technology improves, these systems will get better and safer, which could mean more people will start using them in the future.
The Impact of AI on Auto Repair Tools and Efficiency
AI is also changing the auto repair industry!
Now, AI-powered tools can help mechanics find problems with cars faster and more accurately. It’s like having a super-smart assistant to help out. But it’s not just the tools that are changing—mechanics also need to understand how these new systems work.
Automation Streamlines Operations in Auto Repair Shops
On top of that, automation is making life easier for repair shops. For example, auto repair shop software that can schedule appointments, keep track of parts, and even remind customers when it’s time for an oil change.
These changes are already happening, and they’ll only grow in the future. The US automotive market is changing, and auto repair industry insights show that technology is helping repair shops work more efficiently.
4. Strong Growth Ahead for Auto Repair Industry
The auto repair and maintenance market has been growing quickly in recent years. It’s expected to grow even more, from $960.98 billion in 2024 to $1051.52 billion in 2025, with an increase of 9.4%. This growth is happening because people are earning more money, companies are paying more attention to the environment by reusing car parts, and cities and economies in new markets are growing fast.
Long-Term Projections and Sustainability Trends
Looking ahead, the auto repair market is expected to keep growing and reach $1469.64 billion by 2029, at a slower but still strong rate of 8.7%.
This growth is due to people caring more about sustainability, the cost benefits of fixing older cars instead of buying new ones, new government rules for handling car waste, and the high price of new cars.
Technology and Mergers Driving Future Industry Growth
Big trends in the future include using better technology to predict car problems before they happen, adding new safety features in vehicles, and using big data to help repair shops work more efficiently. Companies in the US automotive market are also focusing on mergers and acquisitions to increase their profits. According to auto repair industry insights, these changes will help the auto repair industry keep growing in the coming years.
Wrapping up
To stay on top in the auto repair world, it’s important to keep up with changes. This could mean getting new tools, learning how to fix electric vehicles, or using technology to diagnose car problems. There are so many exciting opportunities!
