The Automotive Industry is highly cyclical and prone to economic upswings and downturns. To survive in this era, automotive manufacturers need to expand their business beyond traditional car sales and focus on mobility solutions. With the help of telematics, automotive companies can anticipate consumer preferences, identify emerging market opportunities, and implement new business models. These services can also help automotive dealers differentiate themselves from other automakers. Listed below are some of the key benefits of these services for automotive companies.
As urbanization continues to rise worldwide, the automotive industry must evolve to meet the growing need for urban mobility. Rapidly increasing urban populations, combined with the disruption of typical commuting patterns, are creating new opportunities in the mobility industry. Environmental regulations are driving improvements to vehicles’ powertrains, with hybrid and electric options increasing in market share. In a nutshell, electric and hybrid solutions are the future of mobility. The automotive industry needs to rethink its business model and embrace the opportunities these changes present.
As autonomous vehicles become more prevalent, the automotive industry is facing a critical period of disruption. Future vehicles will be connected, self-driving, and shared on demand. The key drivers for this industry’s disruption are time savings, increased efficiency, reduced costs, and lower environmental impact. The automotive value chain will extend over the entire lifetime of the vehicle, requiring automakers to invest heavily in software solutions and digitalizing their core.
While the evolution of mobility has caused numerous industry analysts to offer their own visions of the future, the latest research shows that new mobility services will become a catalyst for new innovations. They will push automakers to experiment with new business models and revenue streams, as well as explore new ways to serve customers. Ultimately, the changes will create new opportunities for car dealerships, and help them maintain their position as a full-service transportation provider.
Technology is changing the auto industry. The evolution of connected and autonomous vehicles will require a new supply chain that is smart and data-driven. This means manufacturers will need to redesign their vehicles, develop smart manufacturing networks, and engage with their customers. In addition to these new trends, the automotive industry is changing its workforce. Many workers will retire or lose their jobs in the future, and companies will need to retrain employees. For example, the emergence of car-sharing and autonomous vehicles will require changes in the way workers are hired, trained, and retrained.
Using MaaS solutions is also a viable option for reducing congestion and pollution. Automakers have been watching developments and are making the appropriate adjustments. Some legislators in major cities are also discouraged from owning private cars, and automakers may need a new revenue stream to stay in business. If MaaS solutions prove to be a viable option for consumers, the automotive industry will be in a stronger position to thrive.