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Automotive industry is facing changes in technology&business model

The automotive industry is facing changes from a host of innovations in technology and business model.
Automation Aside from the electrification of vehicles, automation is another key trend predicted to affect the industry more widely, as well as disrupt other industries, such as automotive insurance.
Electrification will becoming increasingly prominent as the wider economy in the West moves to meet its environmental obligations, while innovation in automation is set to create a new dynamic in revenue and profit cycles for the automotive industry, particularly when full automation hits.
Changes within the automotive industry are likely to become increasingly impactful over the coming years as new technological innovation and business model innovation develop, and new regulatory conditions are imposed in line with global health and environmental concerns.
The effect of automation on revenues and profit are likely to be drastic.

global automotive industry

as mentioned in In March 2017, the production and export of light vehicles in Mexico grew 36.7 and 32.7 percent, respectively, bringing the industry to new historical figures.
Export data by region during the first quarter of 2017 show greater growth for the United States, Latin America and Europe.
In a press conference, the president of the Mexican Association of the Automotive Industry (AMIA), Eduardo Solís Sánchez, said that production in March reached a record high, “that Mexico had the best month of its history and the best Level of export “.
During the first three months of 2017, light vehicles that Mexico sold abroad were shipped mainly to the United States with 75.7 percent, Canada with 10.4 percent and Germany with 2.8 percent.
For every 100 vehicles sold, 14 are Mexicans, while Canada reduced its share to 8.2 percent; Latin America has 7.4 percent; Europe remained at 5.1 percent; Asia participated with 0.9 percent and others with the remaining 2.5 percent.

Digitalisation transforms automotive industry

automotive industry

as mentioned in Digital Transformation of the Automotive Industry, recent research from Frost & Sullivan’s Future of Mobility Growth Partnership Service program, finds that spend on digitalisation will transform the component hardware-driven automotive industry into one focused on software and solutions.
“Digital transformation will affect the entire automotive value chain including design, production, distribution and retail; reshaping the traditional automotive business model.
The automotive industry is facing unprecedented disruption.
Investments into digital automotive are expected to reach $82.01 billion in 2020.
“Automotive companies adopting custom digital initiatives will be able to successfully leverage their software investments, access new markets, and easily adopt best practices.”

collected by :Catlin Logan

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