The automotive industry is one of the most flexible industries we have. The automobile industry has been evolving since the first gasoline powered car was made and continues to evolve today with electric vehicles, autonomous vehicles and beyond to change the way we live, work, and travel.
A Look Backward
The automotive industry began in the late 1800's when Karl Benz developed and built the first true "car" that could carry a person in 1885. The first real change in history was in the early 1900's with Henry Ford's development and implementation of the assembly line; they revolutionized the industry and placed the average person into a car affordable and approachable.The era of mass mobility began and a totally new economic path was created for many countries around the globe.
Technological Innovation is the Defining Feature of the Industry
Although automakers have always had a history of innovating, we have seen the introduction of numerous technologies in the twentieth century including:
Safety features - Think of seatbelts, airbags, and anti-lock braking systems (ABS).
Comfort features - Such as HVAC, infotainment systems and power assisted steering.
Performance - The introduction of turbocharged engines, hybrid systems and efficiencies.
In the twenty-first century, the speed of technological change has accelerated as companies have introduced electric drivetrains, automatic driver assistance systems, and connected vehicle technology.
Growth of Electric Vehicles (EVs)
The expectation of sustainable solutions, along with regulatory pressures are well underway to aid the transition to sustainable transportation. Electric Vehicles (EVs), which were once thought of as some distant invention, are now being embraced and are becoming prevalent manifestations in the automotive industry. Companies like (Tesla, Nissan, and BMW) and legacy manufacturers (Ford, Volkswagen) are going to continue to devote resources to research and development of electric vehicles.
EVs offer several advantages:
Zero tailpipe emissions
Lower running and maintenance costs
Quiet and smooth operation
Despite these benefits, challenges remain in battery technology, charging infrastructure, and raw material supply chains.
Smart and Autonomous Cars
The emergence of autonomous vehicles is another major disruption. Autonomous technology is designed to reduce driver-related accidents and enhance productivity when it comes to transportation. Multiple tech companies are working on alternatives, including Waymo and Apple, and automakers including Mercedes-Benz and GM, and they are testing multiple levels of autonomy.Similarly, connected car technology is improving the consumers' experience with real-time traffic updates, over-the-air software updates, and smartphone integration.
Challenges Confronting the Automotive Industry
In the meantime, the automotive industry is massively evolving; however, several areas still face major challenges:
Supply chain challenges (e.g., semiconductor availability)
Geopolitical uncertainty
Cybersecurity threats surrounding digitalization
Consumer desires related to personalization and sustainability
Adapting to these factors necessitates innovation, speed, and investment.
Mobility in the Future
Moving forward, it is anticipated that the automotive world will gravitate towards a "CASE" model: Connected, Autonomous, Shared, and Electric. Some trends that are predicted include:
Increased consumption of mobility-as-a-service (MaaS) solutions
Vehicle-to-everything (V2X) communications to become smarter cities
More sustainable materials and recyclable parts will be a focus
Hydrogen fuel cell vehicles will be on the rise with EVs
