With the global pandemic impacting the auto industry, sales reports released by automakers over the last few months have shown significant drops in demand. With plants forced to shut down, several major model launches have also been pushed back including the Ford Bronco, which will finally break cover next month. As the industry begins to recover, new car launches will increase rapidly over the next few years according to the Bank of America Merrill Lynch's annual Car Wars report.

Next year in 2021, the report predicts there will be 40 new car launches, matching the average increase rate of the past two decades. However, this will increase to 77 in 2022, 70 in 2023, and 63 in 2024 according to the report.

Unsurprisingly, an increased focus on EVs and hybrids is a major factor for this increase thanks to upcoming launches such as the Tesla Cybertruck, Rivian R1T and R1S, General Motors' reborn Hummer, and Volkswagen ID.4. Combined, electrified vehicles are expected to represent 49 percent of new car launches over the next four years, with EVs making up 26 percent and hybrids representing 23 percent.

Predictably, crossovers represent the biggest segment increase, accounting for 49 percent of the total, followed by light trucks at 28 percent. Passenger car segments including luxury/sport, mid/large, and small, on the other hand, represent less than ten percent of the total.

In addition, the report assesses each manufacturer's replacement rate for new models, with the industry average rated at 74 percent. In the next four years, Honda will debut the most new models, with 91 percent of its lineup representing all-new models, followed by Hyundai and Kia (80 percent), Fiat Chrysler (57 percent), and Toyota (59 percent).

Ford, on the other hand, has the highest replacement rate out of the Big Three US automakers, with a rating of 83 percent thanks to major launches such as the new Ford F-150, Ford Bronco, and Ford Mustang Mach-E.