Changes: The Automotive Industry

 

If we can name one industry that is always changing and developing, it would be the automotive industry. Why? Technology is the main factor for automotive changes and it is all about coping and researching on new auto technology.

We all know that EVs (Electric Vehicles) are the next big thing and the future of driving. However, it will be adopted in a few years’ time in stages. That being said, automakers are on the line of the “safety” requirements and liability. Customers will need to adapt to these safety features and how to handle the vehicle. The rise of Hybrid vehicles will definitely see a hike as environmental regulations are tightening around the world.

China is the prime example; as being the largest market for automobiles. The automotive sector in China continues to grow albeit the rising costs and technological advancement. Today, consumers have a certain amount of expectations when it comes to technology features in a car; electronic and connectivity with personal devices. However, this also creates a huge challenge for manufacturers to keep up with the demand, whereas rapidly changing technology can become out-dated in a matter of months.

With the point above, we can also say that this gives opportunity to many technology companies out there; convergence. Many tech companies are venturing into the automotive scene and is partnering to create the next big thing. The culture of online shopping has also increased due to its convenience and reviews. However, test drive is still pretty much the deciding factor until today.

According to https://www.worldfinance.com, increasing austerity in terms of environmental and fuel efficiency standards, as well as safety requirements, is another growing burden for manufacturers. Well, on a good note, this means the automotive sector is growing in terms of demand and expectations. Today, many automakers are finding a way to cope up with these technologies, while at the same time, keeping the costs down.

 Image source:  https://www.mckinsey.com

In society and authorities area, the automotive industry has reached to a point where safety and environmental-friendly products are vital aspects of the business. This is however, not a bad thing in societal development. According to the site https://www.mckinsey.com , “The automotive revenue pool will significantly increase and diversify toward on-demand mobility services and data-driven services.”