On the Future of Automotive - Download our New Report Today
Lifestyle brand autos, fashion brand charging stations, third-lane bumper cars.
For 2025, I begin with a new approach to the newsletters: an analytical one based on all the data I’ve shared in our newsletters over the last few months. This week, I’ll take you through a study of automotive trends - and next week, we’ll look at retail trends together.
If you still want that weekly data-pump then check the free PSFK.com where I file new ideas each day, read a fabulous idea-list newsletter like Ben Dietz’s
(which I contribute links to), subscribe to ’s company tracker alerts - or ask my team to build you a newsletter like they do for several other clients. Thx & HNY - PiersThe Future of Automotive (Q1 2025)
When I looked through my research over the last 3-4 months and run my pattern recognition process I could see how the automotive world is experiencing a multi-lane shift. Those Western manufacturers we’ve all grown up with (and driven) now find themselves facing fierce competition from emerging Asian players—companies setting new benchmarks for consumer insight, technological sophistication, and affordability. Chinese automakers, in particular, are leading this charge, blending advanced electric powertrains, rapid innovation cycles, and holistic customer ecosystems that extend far beyond the vehicles themselves. If you’ve rented a Chinese car while on vacation in, say, Italy then you probably already know the how these autos stack up to the best Korean, German and Japanese marques.
Even if you don’t work in automotive, it’s worth reading on for 3 reasons: you might get inspiration to bring into your industry, you might want to know what to look out for from overseas competition, and - you might find a way to get into the car business!
So what’s happening out there in the automotive world?
Well, you know this already but electrification continues to rise globally, albeit at a slower pace in the US. What was interesting to note is that while Western automakers cautiously build EV versions of their existing line up, Chinese brands start from scratch are rolling out accessible, high-tech models at remarkable speed. Their agility and focus on value are reshaping market dynamics, offering consumers more choices than ever and challenging traditional automotive hierarchies.
These new automakers are ready to serve a transformation in urban mobility. Cities worldwide are experimenting with AI-driven traffic systems, expanded EV charging networks, and dedicated “third lanes” for micromobility vehicles. These innovations promise to reshape urban navigation, influencing vehicle design and ownership models alike.
That said, the rise of connected car features has sparked critical conversations about data privacy and security. Western brands in particular face growing scrutiny over how they handle personal information. Balancing innovation with trust is becoming a defining challenge for all players.
The report itself shares key market trends are also defining opportunity for the automotive industry: Customization and personalization are driving consumer engagement. Automakers are redefining visual identities for the electric era, with Western brands focusing on premium aesthetics and Chinese players blending affordability with cutting-edge design. Cross-industry collaborations are extending brand narratives and immersive experiences are communicating values like sustainability and innovation. There are also opposing trends, one that focuses on urban mobility solutions and another focused on creating vehicles for outdoor adventure.
Where could this all lead? For a start, maybe the pieces are in place for a well known fashion brand to create their own car range (with the help of a Chinese EV co). Maybe we’ll see lifestyle brands take over the fueling stations and rethink the experience - or maybe we’ll be driving those outdoor vehicles - just on main street at the weekend.
The rest of this newsletter summarizes PSFK’s latest report, The Future of Automotive Q1 2025, and delves into the drivers and trends shaping the industry. It also outlines four inspirational opportunities for brands, creative partners, and businesses to thrive in this evolving landscape. Only for today: the report is accessible to all paid subscribers via a link later on in this newsletter today Monday Jan 6 - or it can be downloaded via PSFK.com at any other time.
Continue reading for a closer look at the major trends, along with a summary of real-world openings for manufacturers, lifestyle brands, and beyond.
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