Automotive industry embraces consumer technology trend with growth of transport aggregators

Automotive industry embraces consumer technology trend with growth of transport aggregators

Industry companies realize that, just like every other digital sector, they must be transformed to meet customer demands. Today’s digital trends are very impressive in the automotive industry, which is good in light of the growing appetite for digitally improved customer experience. The COVID-19 pandemic shook up the automotive industry – along with every other industry – electric vehicles were moving steadily into the spotlight. The combined annual sales of battery electric vehicles and plug-in hybrid electric vehicles tipped over the two-million-vehicle mark for the first time in 2019. This much-anticipated milestone may have become overshadowed by economic uncertainty and changed consumer priorities, but there is value in taking stock of the electric vehicle market even now. Yet another sharp drop in November’s West European diesel car sales threatens to derail the autoindustry’s obligatory efforts to comply with the EU’s tough 95g/km fleet average levels by 2021.

  • Advances and innovation in materials engineering will be key to the adaptability and success of automotive manufacturers in this competitive and evolving landscape.
  • In the United Kingdom, lockdown measures took consumers out of the automotive retail market for an extended period of time.
  • The Deloitte 2018 UK Automotive Consumer study finds that people are slowly accepting autonomous technology, with consumers in the UK less concerned about safety – a trend that is consistent around the world.

In this Deloitte report, we take a new approach to market segmentation and exemplify how to seize opportunities and manage risks. The suppliers were reluctant to sue for patent infringement as they would be suing actual or potential customers. However, many of these new technologies are from the high-tech area and were not invented by the auto industry, which means car makers and their suppliers do not own the original patents. Accordingly, the holders of the intellectual property relating to many of these new technologies are much more willing to assert or to sell their patents, which again leads to increasing litigation. Self driving cars are expected to be the next big development and fully driverless vehicles that do not need a driver at all may be on the road as soon as 2020. This change in technology has a number of ramifications, both due to the increasing amounts of technology integrated into automobiles, but also due to the nature of the players developing the technology and being introduced into the market.

Trend Perspective: Automotive & Mobility

SMMT’s third annual trade report, Driving Global Britain, is published in a year when markets around the world shut down as individual countries grappled with the pandemic, every sector had to readjust expectations. The core competence of Brose is the synthesis of mechanical, electrical, electronic and sensor systems. Worldwide, every second new vehicle is equipped with at least one Brose product. Customer Reviews, including Product Star Ratings, help customers to learn more about the product and decide whether it is the right product for them. Despite this, interacting with an onboard computer remains a distraction from the road ahead.

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Lingering health concerns will likely also play a pivotal role in consumer behaviour. Many governments have offered compelling financial incentives to make the electric switch, such as providing cash subsidies to consumers buying low-emission vehicles, reducing taxes on EVs and increasing or maintaining taxes on ICE vehicles. But as EVs reach price parity with ICE vehicles, some governments have explored rolling back such incentives; this can have a dramatic and immediate effect on EV sales, as seen by the recent fluctuations in sales in China and the Netherlands. Businesses deciding whether plug in hybrid and battery electric company cars offer good value for money should not be deterred by their higher purchase price or P11D value.

Upward trend in patent litigation relating to automobiles

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use. Just a few cars are on display in London’s Audi Virtual Showrooms, but use large video screens for purchasing details. 2022 will be another year of exciting challenges and changes that bring the world closer to a technologically advanced future.

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Other areas of increasing activity include electronic stability systems, remote controls, advanced braking systems and improved electric motors. The automotive industry’s most important innovations are increasingly more about computer technology rather than more traditional components such as engines and wheels. Entering the field of mobility services could potentially open up access to new sources of income for manufacturers; but at the same time there will be increased pressure on the core business of the production and sale of cars. In the age of “eascy” it is no longer just the product but the mobility services that will be at the heart of the business model. This is the only way companies can continue to meet the changing expectations of their customers, and it will be essential to link the “hardware” (i.e. the vehicle) with the “software” (i.e. the services).

Some segments are naturally more interested in purchasing an EV than others; OEMs and their partners may look to target them first – if the right product mix, capabilities and insight are available to do so effectively. In our United Kingdom example , Segment G is the most likely to consider buying an EV – perhaps not surprising, given the relatively higher price tag of EVs up to this point and the greater likelihood of those consumers having off-street parking . In the short term, COVID-19 may hinder some OEMs in their reach for these targets, as they conserve cash and divert investments elsewhere in the business. But in the long term, we expect these targets to continue as priorities for OEMs. The impact of the investment and targets shown in figure 5 will represent a seismic market shift over the next decade, in terms of availability and affordability of models.

As part of the emphasis on user interactivity, we are seeing manufacturers implementing features like Gesture control, a technology that enables users to take control of their radios through the use of hand gestures. On the current market, the BMW 7 Series has the capability to park itself without the owner’s intervention. Likewise, in 2015 Google started testing self-drive cars with remote sensing technology, where a laser was mounted on the roof to generate a 3D map of the surrounding area to navigate automatically. A greater number of gear ratios, low-weight design, and advanced dual-clutch operation, all work to deliver smooth, seamless gear changes. Meaning the Fiesta EcoBoost Hybrid delivers a more efficient and less demanding drive, particularly in stop-start city traffic.

In addition, startups like Uber reduce the huge cost of car purchasing, registration, and servicing, and provide some financial assistance. It enables them to minimize deployment time by 80% and quality control concerns by 5%. If you’re looking for your next automotive job, then put on the brakes and check out our latest roles.