How new technologies have changed the automotive industry » Oponeo


We have regrouped car segments into more meaningful classifications of the different types of vehicles that consumers buy, from an even greater depth of data than before. As we now have a more detailed dataset, we have restated figures for prior periods to reflect the change in methodology. Vehicle export revenues reached £27 billion in 2020, making them more valuable to the UK than power-generating machinery and gold, even during a year when the global pandemic disrupted trade flows and shut down markets around the world.

  • There is little difference in the digital transformation in automotive industry.
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  • FACTS (Field-data Analysis for Customer Satisfaction) is a core of expertise in the BMW Community, which analyzes enormous pieces of data.
  • Car sharing means that the vehicles can only be collected from pre-defined stations.

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.

The Automakers Dilemma: Getting More Impact from Innovation Capital

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.

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).

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.

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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.

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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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