The automotive industry is experiencing a significant shift, fuelled by technological advancements and changing consumer preferences. Electric vehicles (EVs) are gaining traction, with Tesla leading the race, but traditional automakers are catching up. The industry’s evolution is a result of four factors: electrification, connectivity, autonomy, and changing ownership models.
Electrification is driving the industry’s transformation, with governments worldwide implementing policies to phase out internal combustion engines. Connectivity, too, plays a significant role, with connected cars offering enhanced safety, efficiency, and comfort. Autonomy is another game-changer, with autonomous vehicles predicted to revolutionise the way people travel. Lastly, changing ownership models, particularly the rise of shared mobility, are disrupting traditional car ownership norms.
Despite these changes, the industry’s core structure remains unchanged, with automakers, suppliers, and dealers still playing crucial roles. However, new entrants like tech companies and startups are challenging the status quo, bringing fresh perspectives and innovative solutions.
The road to the future of the automotive industry is paved with challenges, including regulatory hurdles, infrastructure issues, and consumer acceptance. Yet, the industry’s transformation seems inevitable, with the future likely to be electric, connected, autonomous, and shared.
Go to source article: http://www.asymco.com/2021/01/13/the-entrants-guide-to-automotive-industry-updated/