The automotive industry has always been at the center of industrial revolutions. Throughout history, the industry has experienced various revolutions and innovations that have shaped the way we live and work today. From being a labor-intensive industry, it underwent a series of technological breakthroughs that led to the industrialization of its main production processes. Automation also ushered in an era of automation, and the industry has incorporated several new technologies like robotics, additive manufacturing, and the Internet of Things. Today, end-to-end digitization of the value chain is widely considered to be the future of the automotive industry.
In the 1950s, Germany and the UK began manufacturing cars again, and by the 1980s, these countries produced about 80% of all motor vehicles produced worldwide. The US remained the dominant automotive producer for most of the 1990s, but South Korea emerged as a volume producer and rose to No. 5 in 2004. In the 2010s, India surpassed Korea as the world’s largest auto producer, overtaking Canada, Spain, France, and the United States. Its rise was further accelerated by the growing awareness of environmental issues, and the availability of oil reserves.
In the future, manufacturers will seek to improve their relationship with consumers, figuring out their needs and experiences first. Today, manufacturers are cut off from consumers in a way that enables them to bury their heads in the sand. As a result, they rely on dealer partners to hide their real needs and desires from consumers. They spend billions of dollars on advertising, sponsorships, and customer clinics to increase their sales, but they keep introducing market duds that don’t meet customer needs.
As a result, many industries have begun to focus on these aspects to improve their bottom line. The automotive industry is a great example of this because the original cars of the 1800s are undergoing a transformation. In the 2020s, vehicles will be completely different from today’s models. To remain competitive, automakers must adapt to new technologies and business models and produce new products faster than ever. So, how do these innovations impact the automotive industry?
Manufacturers have been stepping up their efforts to improve their distribution systems. Nearly every automotive manufacturer has restructured their dealer network in some fashion. Ford Motor Company, for instance, has been enlisting dealer support in a number of metropolitan markets. Volvo AB is another example of a global automaker that is looking to make new inroads in its local market. In addition to embracing new technologies, automakers have implemented a number of changes to their dealerships.
In the United States alone, 276 million cars are registered. Vehicle owners equate owning a vehicle with freedom. Many American families are constantly on the go, and own one car per parent and older child. With so many benefits to owning a vehicle, it’s no wonder that car ownership is on the rise. It not only allows families to stay connected, but also transport family members. In addition to improving their comfort, the automotive industry is also developing more sophisticated technologies.