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Tech Influences To Expect in the Automotive Industry

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The automotive industry has long been dependent on the tech and industry sectors for improvements and sustainability, but the introduction of self-driving cars and electric models shows just how far the industry will be completely revolutionized by new tech advancements. The world has been adjusting to the digitization of many sectors, and the automotive industry is no stranger to these transformations. New tech has advanced automotive into a new age, where users enjoy a more innovative experience and manufacturers enjoy higher revenues. Here are some things to expect as tech transforms the industry.

The Digital Buying Experience

The 2020 pandemic changed the way many businesses reached consumers and addressed daily operations. The automotive industry spent time working on the digital landscape, though consumers have not had the most favorable reaction to buying a new vehicle completely online. However, the makers and sellers aren’t going to give up. There is an interest in making the buying experience as seamless as possible, all the way from giving consumers a virtual tour of the automobile to filling out the paperwork for an auto loan through digital connections.

It will be quite an adjustment for consumers and staff alike, and car dealers may have a problem with employee retention. Consumers are also more reticent to commit to a completely digital experience for such a large purchase. Dealerships are introducing more tech into current showroom setups, with interactive screens and VR simulations in certain car models. If the industry is able to successfully make the conversion to a digital buying experience, makers and dealers will be able to reach more consumers more quickly but with lower expenses.
The Improved Connectivity Between Owner and Support Resources

Vehicles owners will benefit from increased connectivity regarding their vehicle maintenance, insurance and registration. With digital records and improved connectivity between Internet of Things devices, owners don’t have to worry about when their next oil change should take place or how to file an insurance claim. Many of the paperwork processes associated with registering a car, purchasing insurance or scheduling maintenance will be digitized, and central access to vehicle-specific information streamlines the owner’s responsibilities.

The Eco-Friendly Movement

Though vehicles have transformed the way people and products get from one location to another, a negative side effect has been the increase in carbon dioxide emissions. In addition to the significant reliance on limited fossil fuels, increased emissions lead to environmental damage. Thanks to electric cars, the demand for limited resources is reduced and harmful emissions are minimized. Battery power gives these cars a clean energy source, and many manufacturers are pursuing more eco-friendly models. However, the consumers struggle with the price-point and the limited infrastructure of charging ports.

The Faster Model Release Cycle

Typically, a new model was released up to a decade after the original came off the manufacturing line. However, as new tech changes the efficiency of both production processes and the function of the automobile, model releases can come in as little as one to two years. As consumers buy into the upgrades and see the benefits of a newer model, the automotive company sees greater revenue. Niche or demographic-specific models are a consumer-centric approach that can deliver the best profit, yet it could have an adverse effect on a company’s research and development costs.

The Release of More Autonomous Vehicles

Artificial intelligence has been a key factor in many of the developments over the last decade, and its current areas of exploration are in autonomous vehicles. Though it has been used for predictive maintenance and improved intuitive safety adjustments, AI is being tapped for self-driving vehicle development. Rather than using a human driver, these cars and trucks rely on both software and sensors to navigate the roadway. Machine-learning is a factor in the success of these advancements, yet ethical and safety concerns are keeping the tech from becoming more integrated with key automotive manufacturers.

Tesla has been an advocate for driverless cars and has a plan to release 10,000 robo-taxis by the end of 2021. Ridesharing services like Uber have also experimented with autonomous car services. As more companies take part in the change and more applications are created to ensure safety, the autonomous vehicle sector will be worth close to $560 million by the year 2026.

There is a lot on the horizon for the automotive industry, particularly in areas of tech influence. The overall goal is a safer, more efficient mode of transportation where consumers and manufacturers reap the benefits.

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