The automotive industry consists of various activities like the sale of automobiles, research and development, manufacturing and marketing. The car provides employment opportunities for people in all parts of the world. Consequently, it has shaped the economic scenario across the globe. There is no doubt that there is constant evolution in the business of automotive because of better research, efficiency in manufacturing and new alternative fuel sources. The latest experimentation that involves navigation without the need to use human input is Google’s self-driven cars.
Environmental Regulation
Since leaders across the globe have realized that Carbon Dioxide has a higher carbon footprint and harmful effect, firms that want to succeed in the long term will now have to follow strict policies that regulate the environment. Governmental bodies have taken measures to save fuel and control emissions by initiating stringent environmental policies on the original manufacturers of equipment.
Autonomous vehicles
The advent of a driverless car, which uses advanced control systems that interpret sensory information to run on GPS, will lead to dramatic changes in the automotive industry’s business. Since many people employed as drivers for taxis, buses and delivery will now have to find jobs, the same adverse effects will occur.
Hydrogen economy
Hydrogen fuel has more fuel efficiency and does not have any fuel emissions in terms of other fuel sources. Hence, it is the automotive industry’s talk. However, in order to split Oxygen and Hydrogen atoms, electricity is required and it is mostly obtained from coal. Therefore, although the idea will be the future, extensive research would be necessary before taking decisions.
Electric Cars
A new type of cars that now uses electricity to run was bought with excessive operational costs and environmental issues. Expectations are that battery-powered vehicles will comprise 10 percent of the automotive market by 2020. The next big thing is the electric powered vehicles with the many health problems that are being caused by the adverse effects on the quality of air.
Digital Era
Consumers want ease of use and some hyper connectivity. They usually use digital means to make purchase decisions and this means that companies will now increase the automotive’s market share for Gen Y consumers by creating a strategic digital plan. The cutthroat competitive environment will require effective content generation via videos and blogs, and Social Media platforms.
Changing distribution channels
The pace at which the transformation of the processes of selling in the automotive world is taking place is incredible. For long, a market that is dominated by only a few has been because of inertia. Today, firms have realized that they need to do more so that they can tap into potential markets whose focus is only on high end and design model. They have realized that in order for them to have a reputation of being a customer-friendly brand, they must penetrate into long term customer relationships. The business’s next big thing will be multiple channels that satisfy different market segments.
With the rapid changes in the business and the availability of better and more options for consumers to choose from, maybe there will be many more consumers and new buyers in the degrading automotive industry who will sign up for the Dsa Practical so that they can purchase a flashy new Jaguar that they have been saving for.