Table of Content
The automotive industry described as transformative, destructive, and meaningful. The emergence of hybrid, connected and self-driving vehicles are rapidly restructuring the industry. We can assume that the automotive industry will change compared to other historic automotive innovations. There are 10 million self-driving cars on the road by 2020, with autonomous vehicles being the order of the day by 2020. The automotive industry experiences a targeted wave of innovation every decade. These innovations include mass production, safety awareness, improved fuel economy, and, more recently, hybrid and environmentally-friendly vehicles. The changes in the automotive industry are because of economic fluctuations and consumer demand. The next wave is no different. Even in the dark, however, the automotive industry was not at all stagnant. The next decade will be one of its greatest. 2020 has enabled automakers to position themselves on the path of electrification and connectivity as they emerge from the crisis.
The Automotive Industry In The Next Decade
Automotive Industry will have a huge impact on the insurance industry as we know it. It is important to note that because of the “perfect” safety record, the automotive industry will likely not be eliminated. With $ 220 billion in annual sales and nearly 300,000 jobs created, the automotive industry is big enough to turn around despite the downturn. The most anticipated changes include micro risk and micro rewards synchronized with real-time data generated by the autonomous vehicle processor. The countries responsible for paying insurance premiums will also change when each country develops specific laws. For example, a recent law in Michigan states that carmakers buy insurance for every car if a driverless system fails. These changes will be gradual as regulators, governments, manufacturers, and consumers adopt driverless technology in their everyday lives.
2- Digital Experience
As consumer spending behavior continues to change and COVID-related restrictions exist until at least the first half of 2021, a better customer experience will be essential in 2021. Online sales tools are being refined and embedded in the process, and while the models behind them haven’t changed completely, they will evolve and identify gaps in the current customer experience. Digital market leaders such as Daimler offer one-time registrations to optimize the customer experience for current and future customers. Most automakers are focused on connection acceleration and voice-activated features to enhance the experience of driving, shopping, and in-car service. To do this, they are not only applying technology, they are building data-enabled platforms for data and can make faster and smarter decisions about how to improve and develop the customer experience.
3- New Technology
As customers demand new features in cars, new technology will drive other changes. Electricity is happening, but the speed is difficult to predict. Environmental considerations are the driving force behind electric vehicles, but they are relatively insignificant in most car-buying decisions. Without laws or government incentives, electric vehicles could only account for 10% of new vehicle sales by 2030. A total ban on the sale of new internal combustion engines could leave some markets nearly 100% electric. The ongoing move by cities to gradually increase restrictions on internal combustion engines suggests a scenario that could see EVs accounting for 30% of sales by 2030. Over the next decade or so, automakers will have to produce cars with different power units – possibly adding cell fuel to the internal combustion engine and vehicle batteries. The modular structure allows the car manufacturer to continue to produce a large number of variants around.
4- New Customers
Until recently, customers chose cars mainly to meet various needs. (See Appendix 1.) The main options are functions of mobility requirements: commuting, business trips, and family duties. But fundraisers can choose models that are more fun and give them social status. In the future, most people will be “mobilized” who just want to get from point A to B and are not emotionally involved with the car. Maybe they want to drive from a train station or airport to a business meeting in a foreign city, buy furniture and take the kids around by ferry or take trips to the beach or mountains from time to time. Although drivers in the past may have chosen a model that fulfills each of these needs, in the future vehicle users will seek the best solution for each task. Depending on the local choice, this could be a taxi service, taxi, car rental.
5- Electric Revolution
With high global zero emissions targets, this decade will be electric vehicles. And 2021 is a critical year for that change. We will see any major OEM launches or increase the marketing of electric vehicles in their line of vehicles, with a lot of scaling and calibrating their business models to sell electric vehicles on a large scale. Both new and old car manufacturers will bring their long-awaited cars to the market in 2021. SUVs have many sports cars: Audi e-Tron GT, BMW iX3, Mustang Mach-E, GMC Hummer EV SUT, Lucid Air, Polestar 2 (Volvo), Nissan Ariya, and Mercedes-Benz EQC, to name a few. While this live launch is unlikely to lose the Tesla crown, the more competitive electric vehicles are likely to have an impact on the market in the coming years. The electric vehicle adoption market will focus on vans and buses, which will be revolutionary if achieved.
As well as building EV platforms, the carmaker’s big focus this year will also be connecting vehicles. And how they can provide a more stable, similar experience to consumers who need it more and more. Recent studies have shown that the expectation of vehicles equipped with connected technology is widespread. Nearly all respondents (93%) want at least one network function in their next vehicle, with cameras and navigation as the drivers. The appearance of the car and the way it enhances and interacts. The digital life of consumers will produce the most loyal customers. We’re also likely to see new autonomous vehicle designs. At least at CES, that takes the framework of what we know about the outside and inside of a car. And focus more on the experience itself. In 2021, the dream of what it is like to be in an autonomous vehicle will be refined.
Unfortunately, the process of downsizing the business for automakers is far from over. With a difficult year behind them and perhaps a difficult year ahead, there is an urgent need to reduce the complexity of their business and increase profitability. Reducing the number of unfavorable derivatives, minimizing “performance-friendly projects” and increasing the rate of change. The alternative perspective is unfavorable. Ultimately, 2021 will be a year of careful focus: focus on building the future of the auto industry, with electric vehicles and connectivity being key areas for growth and transformation, along with the alignment of operational and cost approaches.
8- Opportunities For New Players
Different markets open up opportunities for new players who initially concentrate on a select few steps in the value chain and concentrate only on certain market segments that are economically attractive – and then develop from there. While Tesla, Google, and Apple are generating a lot of interest right now, we believe they are just the tip of the iceberg. It is likely that more new players will enter the market, especially high-tech companies and start-ups. These new entrants from outside the industry also have a greater impact on consumers and regulators. Likewise, some Chinese carmakers, which have seen impressive sales growth recently. It can take advantage of the ongoing disruption to play an important role around the world.