Making way for automotive companies to become intelligent and sustainable
The automotive industry is on its way to a new world of mobility and witnessing high demand for convenient, fast, reliable and cost-effective means of production, sales and service, and investment into vehicles. This can be attributed to the move towards sustainable energy, cities and communities. With the advent of smart cities welcoming futuristic concepts, the definition of mobility is changing with mobility itself becoming more than just about individual transportation based on vehicle ownership.
There are many trends driving this sure-fire change – because now the automotive industry has to consider mobility to bring people to where they want or need to be. Shifting consumer preferences such as autonomous driving and shared mobility have disrupted the automotive industry, making mobility solutions more cost-effective than vehicle ownership. The automotive industry’s transition to a world of sustainable mobility is poised to be large-scale with innovations in technology enabling sustainable manufacturing practices, minimizing carbon footprint and aiming towards net zero.
Trends shaping the future of automotive industry
Some of the key trends that are already impacting, and will continue to shape the future of the automotive industry, aided with technological innovation for automotive companies to be future-ready are:
Electric mobility with EVs: With sustainability becoming a priority, electric mobility is already set to become the norm. Due to this, the adoption of electric vehicles (EVs) is bound to go up and with it, increasing investments in EV technology that will improve efficiency and look into expanding infrastructure are sure to drive the growth of electric mobility.
Autonomous driving with AVs: Autonomous driving is here to stay and therefore the automotive industry is seeing the trend towards autonomous technology and rise of autonomous vehicles or self-driving cars gaining momentum. There is evidence of extensive investments in research and development to augment autonomous driving systems as autonomous vehicles (AVs) come with a host of benefits that focus on enhancing safety, reducing accidents, and transforming transportation.
Shared mobility: According to a report from Capital IQ, McKinsey Center of for Future Mobility, since 2010, more than 100 billion dollars have been invested in shared-mobility companies. With autonomous vehicles becoming more prevalent, shared mobility too will be expected to further evolve. Mobility service providers along with OEMs and suppliers have the opportunity to work together towards customer-centric vehicle design which can open new doors for innovation.
Connected cars: Vehicles are increasingly becoming more intelligent and connected and act as a means to deliver new services with a continuous feedback mechanism enabled with the automotive manufacturer. There needs to be the possibility to continuously exchange data with OEMs, mobility service providers, automotive suppliers, dealers, service providers and customers and have real-time, consistent vehicle information to effectively implement new business processes across the automotive value chain.
Sustainable manufacturing: The automotive industry is increasingly focusing on sustainable models of auto manufacturing to reduce the impact on the environment. Adoption of modular manufacturing and energy-efficient production processes, building sustainable electric vehicles, providing hundred percent traceability into manufacturing, driving circular processes besides exploring alternatives to take the lead in decarbonization across vehicle production and operation are changing market dynamics.
Digital supply chain: Operating a digital supply chain with smart and modular manufacturing practices requires new business capabilities ready to be deployed along the automotive value chain. By leveraging cloud technology, automotive companies can make the most of digital production of automotive parts and stay ahead of their competition.
How automotive companies can become intelligent and sustainable
Automotive companies can become intelligent, sustainable businesses by adopting, and evolving from industry best to next practices with the help of next-generation technology and creating new and disrupting business models that focus on:
Customer centricity: Brand loyalty, customer satisfaction and winning a large share of the mobility market that stems from tapping into new and unique business opportunities in a mobile world.
Connected cars and mobility services: Look at new perspectives that go beyond the vehicle to looking at mobility solutions that foster new ecosystems and revenue models and create new opportunities for productivity, entertainment and mobility in cars, in a connected world.
Responsive supply chains: The need to accelerate innovation requires responsive, digital supply chains that make use of intelligent technologies to ensure optimum efficiency in processes resulting in productivity, flexibility, cost and energy savings, and customer satisfaction.
SAP’s industry-leading suite of business applications such as SAP S/4HANA and SAP business technology platform (BTP) that help to innovate faster and in agile mode, in accordance with business’ requirements are a solid foundation for automotive companies to embrace digital transformation. With Industry 4.0 that makes it possible to analyse data across systems and enable more efficient, flexible processes to produce high-quality vehicles with personalized experiences, automotive companies can pave the way towards becoming sustainable. Ask Exalogic Consulting to know more!
