Innovations and Developments in APAC's Automotive Industry

To swiftly respond to shifting consumer needs and market possibilities, automotive businesses must innovate and develop solutions.

FREMONT, CA: The car industry is changing paths. The business is evolving simultaneously on many different levels as a result of global disruption, technology advancements, and shifting consumer habits.

The automobile industry is moving quickly towards a new future that includes electric cars, connected cars, mobility fleet sharing, onboard sensors, new business models, and always-on connectivity. This movement is being pushed by sustainability and changing customer behaviour.

Experts say the pandemic hastened the process of digitisation in the automobile industry, despite the initial lag brought on by the abrupt interruption of the global supply chain and the temporary house imprisonment. The continual disruptions to operations and supply networks have significantly expedited several fundamental economic and technological shifts in the car industry.

The majority of the underlying developments in the car sector are being driven by the accessibility and acceptance of cutting-edge technological solutions. According to industry analysts, the automobile sector has to concentrate on the usage of advanced technological solutions in connected automobiles, sensors, electrification, and new business models (such as mobility-as-a-service) in the future.

Businesses need to strike the correct balance between maintaining a reliable and profitable business while also taking the initiative to disrupt their business models. Though the automakers and suppliers have learned from the past, flexibility and innovation are crucial when it comes to the unique challenges they face in future.

Strategies for Success

The five key strategies that the automotive industry relies on for a profitable business include:

• Customer centricity: During the pandemic, several automakers and dealers found fresh methods to communicate with their consumers in turn intensifying the relationship and deepening the connection.

• Mobility services: Brand and dealership loyalty increasingly give way to integrated, convenience-driven services and related mobility possibilities. The future of mobility is centred on new pay-per-use and subscription-based business models.

• Connected cars: Vehicle design and production should adapt to the shifting transportation landscape by becoming ever smarter and more connected.

• Digital supply chain and smart manufacturing: Manufacturing networks and supply chains must be made more adaptable, fully modular, and robust. Success in the future will depend heavily on communication with your suppliers.

• Engaging with a changing workforce: As a result of the major changes in the skills that automotive firms require, businesses need to alter their recruitment, retention, reskilling, and retirement strategies. The traditional skill sets of the automotive industry, which were highly reliant on engineering, are transforming and will soon demand software expertise throughout the whole automotive value chain.

To provide top-line, bottom-line, and green-line advantages for the whole organisation in a digital environment, innovation must become a core component of every department and discipline.