Digital Transformation in the Automotive Industry
Since the digital trends in the automotive industry have witnessed its growth due to the tremendous pressure on automakers by the customers in order to change the way of establishing the models and managing their strategies. The automotive enterprises have a long-term strategy to expand the productivity, efficiency, manage supply chain and hit new customers. The new changes that progressed the customer’s expectation that empowered customers using social media to find hotels, jobs and even partners.
The question which made hard on automotive entrepreneurs that how they will they take advantage of the opportunity to innovate new strategy to establish the products and grow in this new direction. The digitalization in technology will increase the automotive industry investment to $82 billion. Through our research of leading automotive companies with having a strategy to integrate digital and physical elements to successfully transform the business model. The following are the trends that currently transforming the automotive Industry.
The Car Buying Process:
Car buying is used to be a source of stress, consumers are only equipped with Tv ads, newspaper felt ill-informed and pressured when buying a new car. This increased the customer demands on the manufacturing companies, now consumers are researching a car online before stepping into the car showroom. The Websites like TrueCar and Carwale provides all the information on buying a car with a click of a button. The actual showrooms like Audi are gradually transformed into digital marketplace equipped with Virtual Reality dwarfed by a colossus video screen to display all the information about a car. The virtual reality welcomes the consumers to the open doors equipped with a sound system to hear the real car sound effects. In this response driven by consumers on research online made the entrepreneurs start selling the vehicle parts and cars directly through online.
Autonomous Vehicle is about to make mass adoption of self-driving which is going to make a revolutionary impact on reaching far beyond the automotive Industry. The possibility of cars driving themselves will become reality by the collaboration between several advanced technologies and Sensors. The AV technology will ultimately handle from GPS to sensors to cameras and connectivities. It is expected that AV will decrease the automotive accidents by saving the lives and decrease the constrained from the freedom of travel. It is anticipated that assisted driving technology features in reducing the accidents and lowering the insurance cost in the upcoming decades. The AV technology will be much effective in saving the consumers cost up to one trillion dollars and most significantly more than 900,00 lives.
Improved Supply Chain Management:
As the digitalization erected various industries, the automotive industry has also gained innumerable benefits, especially in Supply Chain Management. The Digital transformation trend is used to personalize a consumer’s experience and also to customize their needs. By digitizing, the integrated supply chain drives cost down and uses data to serve better to consumers. The digitalization has made the communication possible through social media and Internet of Things that provides instant “talks” to a smart factory which create tasks, manages the overall work-flow. In addition to lower cost, the supply chain allowed for more transparency and shifted to a decentralized positioning for both the production and the supply chain. Due to the digitalization, earlier the plant was 25% automation compared to today’s 75% automated industry. Additionally, digitization reduced the defects rates below 12 per million and the output increased about 8.5times which result in improvement of production and performance.
In today’s world, the automotive industry has come up with self – diagnostic system where the drivers get alerted when there is any problem in any of the part of the vehicle. With this analytical solution, consumers have seen more improvements more than 30% of efficiency in vehicle parts. With continued technology integrated designs, the gauges, knobs and major parts will be replaced with the digital interface that helps the owners by reducing the routine car Maintenance.
Mobility as a Service (MaaS):
The dominance of private and public ride-sharing is seen over the years were vehicles has become the element connected living. Disrupting the current scenario of the automotive industry, the ride-sharing app like Uber and Ola started its service to get a shift away from the consumers from private owned Cars. By presenting the ride-sharing app which helps consumers with financial relief by eliminating the purchase of new vehicles. The Mobility technology influenced companies like Volkswagen to begin its way with its own ride-sharing app while the Fiat is in talks with Google to initiate the process.
As these kinds of widespread changes become a permanent benefit to any Industry. Being the most reputed digital marketing agency in Chennai, we understand the advanced technology and the digital revolutionized the auto Industry far beyond the Industries.
Digital Marketing23 May 2023 | Rachel