A recent study by McKinsey and PwC shows that the automotive industry is undergoing massive change. OEMs are evolving their collaboration strategies and ways of doing business to remain competitive. New technology such as fuel economy, sensors, and systems have increased the technical content of a vehicle. The car is also a communications, entertainment, and communication platform, and the OEMs must master all of these elements to stay ahead of the competition.
As technology continues to improve and the cost of integrating new information becomes more significant, the auto industry is under intense pressure to meet consumer expectations. To compete, the industry must develop new ways to capture attention and spend on transportation. As a result, the auto industry needs to transform and focus on maximizing the value of digitalization. This article outlines the major challenges facing the industry as it tries to meet the demands of consumers.
According to a recent McKinsey survey, nearly eighty percent of automotive suppliers have already defined sustainability targets. This gap between planning and doing may be understandable from a near-term economic perspective. For example, many suppliers are keeping plants in lower-cost regions, even though that will cost them more in CO2 emissions. However, this cost advantage is largely offset by increased emissions if plants were located in higher-cost areas.
The EV transition has begun, but most OEMs are not profiting from EV sales. Compared to ICE vehicles, EVs cost around $12,000 more to produce. With higher production costs, carmakers … READ MORE ...
As the automotive industry has suffered from supply chain challenges and low inventories in the last year, there is still hope for better times to come. But what exactly are the major trends to watch for in the year 2022? Wallenius Wilhelmsen’s senior analyst, Erik Solum, looks at some of the key factors that will impact the industry. Light vehicle sales are up, the global economy is improving, and the Delta variant poses a threat to the global economy and pandemic. At the same time, new entrants will appear in the Top 100.
Autonomous self-driving vehicles
While passenger cars have long dominated the automotive market, self-driving technology is equally well-suited for commercial use. While last-mile deliveries and long-range trucking will be the initial commercial applications, an increasing number of companies will shift their focus to more widespread commercial uses. Companies like Waymo Via and Aurora are currently in the development stage for driverless freight trucks.
Subscription-based pricing models
As an automaker, you have probably noticed the increasing number of subscription-based pricing models in the automotive industry. These models offer the advantages of building fleets at a lower cost while also allowing OEMs to capture higher margins as the market grows. In addition to this, subscription-based pricing is often perceived as the ultimate test-drive, attracting future buyers and even non-car buyers. In this article, we will discuss the advantages and disadvantages of subscription-based pricing models in the automotive industry.
According to the European Automobile Manufacturers Association (ACEA), new car … READ MORE ...
It is exciting to determine that the number of companies working with information is escalating. It is also pretty cool to see a few of the new and revolutionary ways that companies are performing so, specifically with information analytics playing a huge part in attaining new levels of accomplishment.
The automotive industry has been attempting their hands at working with information and they are performing it well. The quantity of information that may be gathered from cars is quite ridiculous, especially whenever you take into account that many information is merely stored in the key which is then plugged in at the garage to view it.
Cars have already been kitted inside and out with data. Yes, I bet that’s not a single you have heard about as it is not cream leather interiors or mud resistant trims. Information is a lot far better. It is behind automobile security and high-quality and contributes to the driving experience.
Did you know, the average hybrid car generates as much as 25 gigabytes of information in just 1 hour? Car companies and garages have already been capturing telematics for many years nonetheless it’s becoming far more sophisticated. Making use of analytics and data has enabled technology to alert drivers of any hazards around the road, or if the situations are specifically unsafe. Anti-locking systems, traction control, and a lot more happen to be made using the aid of information.
IBM reported that Volvo, via utilizing predictive analytics, repair instructions, and identifying replacement parts … READ MORE ...