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Abstract
Undeniably, the automotive industry has seen exponential growth in recent years. This industry is a flourishing behemoth in itself. The art of using technology so efficiently, better than other industries put the automotive industry in a premium basket.
Whatever challenge the automotive industry is facing due to technological change. It’s not very hard to overcome the same with technology. The entire automotive industry is and always will be based on technology drift. Those who accompany the change and dedicate their time, money, and effort to create a more suitable automotive journey for customers, will be benefitted.
The Flourishing Trend of the Automotive Industry
The automotive industry is the foundation of all road and market operations. Its non-availability can put a serious impact on the world economy. The concerns are impactful, so the flourishing trends are. The automotive industry is expecting smooth headwinds post-pandemic. More than 18 million workers in the automotive industry are set to rise in the future. At least, the numbers are favoring the same.
Automotive Industry: Market Insights
Automotive Electronics Market size valued at USD 285 billion in 2018 and is estimated to grow at a CAGR of 7% from 2019 to 2030 – Says Global Market Insight.
AfterMarket Size of Automotive Industry
Another Research published by Grandviewresearch predicts that its market capitalization of USD 378.4 billion in 2019 to grow further with an annual compound growth rate of 4.0% CAGR between 2020-2027. Just in Northern America, the trends are surprising.
United States: Motor Vehicle Production
The United States mobility production is also growing at a high time in numbers. The alone production of cars in the U.S. is projected to see a surge of e 11.7 million units by 2025.
The Alarming Problems of the Automotive Industry
Nevertheless, to mention, Any industry regardless of type cannot grow without facing and overcoming problems. The automotive industry is no exception to this. The problems of the automotive industry are not limited to just production, marketing, and operation management. They have gone far with new environment strictness and CO2 Emissions problems. The automotive industry contributes a significant amount of 20% in the global retail business and has come on the verge of total reshaping to eliminate the threats.
- The major concern of the automotive industry is to produce vehicles with less harmful environmental effects. Although several steps have been taken to entertain the same. But lots of work is still pending to do. e.g., Making people buy uncertain new tech vehicles.
- Undoubtedly, the rise of car-sharing ideas is a good concept for the betterment of users and the environment. But its impact on the sale of automotive vehicles and automotive parts are no less than unfortunate things. Ridesharing ideas are influencing people to buy fewer vehicles. The numerous startups based on ridesharing and carpooling solutions are a by-product of this trend.
- The emergence of the internet of things and especially, smart vehicles are a threat to small and medium scaled automotive industries. They need to keep their infrastructure and workers updated with the new significant market change. This will take time and increase the business cost.
- The increasing terrific rates, market fragmentation, and expansion of the used car buying market are lowering the automotive industry profits.
- The world is prominently looking for a new alternative to run their vehicles apart from petrol and diesel. Too many new energy, sources popping up with the potential to be used largely have created chaos and uncertainties in the automotive industry.
- Increasing competition and shifting customer base is a new challenge to the automotive industry. The idea of brand-building now holds more significance than ever. Spending a big amount of cash on brand building has become a mandatory thing for small and medium scale businesses.
- The supply chain of the automotive industry is a decade-old process. It is still following the same routes, and an age-old process to fulfill the operations. The continuous expansion of the automotive industry is pressuring the existing supply chain.
- Reconnecting with shoppers and building trust is one of the biggest headaches in the automotive industry in several parts of the world. e.g., in the US alone, people hesitate in buying a car from dealers. They prefer doing the shopping online. Reconnecting with them and building their trust with car dealerships is a real challenge for dealers.
Effective Solutions for Automotive Industry
Among all the threats posed to the automotive industry. There are a lot of measures that can be taken to resolve the difficulties. Indubitably, like all the other industries, technology will be playing a major role in solving the most problems and pushing the industry on the future of growth. Several steps can be taken to reduce the global change impact on the Automotive industry.
- The governmental and customer pressure of lowering the CO2 emission from vehicles is a real deal. The same can be done by adopting eco-friendly measures to reduce carbon footprints during the production stage. Later, Pouring time into creating less polluting engines will be helpful.
- The Ridesharing economy — as being presented as a threat to the automotive market may opt as a false claim. The large population of society still holds the desire of owning a personal vehicle. The data we discussed in the trends sections seems to dismiss the ride-sharing threat claims.
- Constant learning and getting skilled for future changes is the only way to cope with the smart vehicle surge and consequent production in the future.
- The used car market is popular only with the general class of society. This is the reason why major companies are focusing more on branding and selling premium vehicles at ease. They tend to get more vehicle sales by Branding and marketing launched vehicles.
- The idea of an electric vehicle is sustainable and a promising future energy source. Apart from this, ethanol also holds the capability to become a substitute for petrol and diesel in the future.
- An autonomous supply chain has a huge potential to replace the existing decade-old supply chain management.
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Conclusion
It can’t be wrong if it’s said that the automotive industry is a never-dying industry. It may see several pitfalls and booms but cannot be nullified totally with any competition. All the changes coming to the automotive industry are industry uplifting trends. None of them are a threat to the entire automotive industry. The need of the hours is to cooperate with the same.
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