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Top Challenges Facing American Automobile Companies in 2019

The past couple of years have been increasingly fraught for American automobile companies due to wrenching changes in in the global economies, government regulations, technological innovations, and relative price and market dynamics. Planners in the automotive industry must now prepare and plan for some of the most fundamental transformations that the American automobile companies have ever witnessed. In order to overcome some of the critical automotive industry challenges this year, strategic planners in American automobile companies must transcend from traditional issues and address much bigger and basic concerns including:

  • Given the rise of autonomous vehicles, will the prevalence of car ownership eventually decline?
  • With the government giving more emphasis to fuel efficiency, will there be a change in the technology mix of new powertrains?
  • What are the key strategies to thrive and grow amidst a slowdown in the pace of growth in unit sales in mature markets and the shifting consumer demands?

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Key challenges facing American automobile companies

American automobile companiesNew ideas about car ownership

Monthly subscriptions are an increasingly familiar business model that is a breath of fresh air from traditional buying and leasing models for consumers. As a greater number of customers are becoming more comfortable with paying for services that they want and then canceling when they are done, eventually this may extend to the automobile sector. By paying a monthly fee for car gives consumers access to vehicles, insurance, maintenance, and roadside assistance. Furthermore, consumers could become less inclined to the concept of owning a car, due to difficulties associated with ownership such as parking costs, maintenance costs, and environmental impact.

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Rising market competition

The entire automotive industry in the US is moving closer to peak demand and increasingly tough competition. Several mature markets such as Japan and Europe are already facing the heat from flattening sales, and automotive industry challenges such as slow demand conditions are expected to affect the North American markets over the next couple of years. The dwindling growth opportunities mean that there will be a rise in competition for a bigger chunk of the market share.

New regulations and technological demands

American automobile companies are at the risk of facing pressure from stringent regulations that focus on reducing harmful gases and emissions from vehicles and thereby improving fuel economy. This is one of the key automotive industry challenges faced by players in the sector. Automakers are now required to make the right choices relating to technology that is in line with the changing regulatory and societal preferences.

Workforce challenge

American automobile companies are facing immense pressure due to the shortage of capable and prepared workers to meet the industry’s manufacturing expertise. Over the next decade, many jobs in the US automotive industry is expected to go unfilled due to the skill gap. American automobile companies will be threatened by the lack of skilled labor especially because nearly 20% of the current workforce in the country’s automotive sector would retire by 2030. The next task for automakers is to identify how to shape the future workforce.

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Getting Back on Track Amidst the Changing Automotive Industry Landscape

The growth in the automotive industry has shifted to markets like US, Western Europe, and China, while their growth rate in emerging markets seems to have cooled off in recent times. At this pace, we can expect the sales in the global vehicle market to slow down over the next few years. Furthermore, at the current pace of evolution and technological advancement in the automotive industry, we believe the automotive industry is likely to witness more changes in the next decade than it has in the last 20 years. Here’s our take on some of the key automotive industry trends revolutionizing this sector:

Automotive industry trends 2019

Usage based insurance

Almost every industry in the world is greatly influenced by the Internet of Things (IoT). IoT has established a wave of connectivity even in industries such as insurance and fintech. For instance, insurance companies are increasingly using IoT data to improve their precision in assessing risk, pricing policies, and estimating a necessary reserve. It has also created significant opportunities in the automotive insurance sector such as usage based insurance (UBI). Usage based insurance (UBI) for the automotive industry is a category of motor insurance that takes into account several factors while calculating the premium. This includes factors such as the type of vehicle used, distance traveled, and the behavior of the driver. Usage based insurance encourages safe driving behavior that consequently leads to fewer accidents, which in turn helps insurance companies to reduce claims payout and improve the bottom line.

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Top 3 Technologies Shaping the Future of Mobility

The automobile industry has undergone a drastic revolution and is now being recrafted, reborn, and redrawn. This is going to be the future of mobility for generations to come. The focus has been shifted to designing a sustainable future for mobility through various innovations such as globalism, propulsion systems, new techniques of manufacturing, and above all the impact on the environment. By the incorporation of such techniques, the future of mobility is going to lie somewhere that the generations to come will cherish. These innovations have the potential to find faster and smarter solutions that will help in designing a smart future for mobility. Such evolutions will impact almost all the sectors of transport like aeronautics, railways, land vehicles, and maritime transport.Ask An Analyst_IR

According to the automobile industry experts at Infiniti Research, “The future of mobility will be marked by innovations brought on by the increasing preference for digitization, increasing automation, and new business models.”

Moreover, the penetration of electric vehicles will help reinvent the current automotive components space. The automotive industry will also witness the advent of new trends in terms of electrification, shared mobility, connectivity, and autonomous driving, which will have a further impact on the automotive components space.

Here are three emerging technologies that have some serious potential to reshape the future of mobility.

Request ProposalTop three technologies shaping the future of mobility

Passenger rail reborn

Technologies like virtual ticketing systems, Li-fi, ticketless traveling, high and hyperspeed, big data, and many more are going to transform the passenger rail system rapidly and will have a huge impact on the future of mobility. Virtual ticketing will combine the use of a vending machine, ticket office, and call center for passengers at the stations. Passengers will have the experience of talking to a real person in real-time using the virtual agent.  Li-fi will replace traditional Wi-fi and provide a good user experience to the passengers. This will also help in cutting down costs and will be more efficient in providing better service to the passengers. Li-fi will not only shape the future of mobility in terms of passengers but also improve operations. Another technology, big data, will help in processing huge structured and unstructured data and will pave the way for the future of mobility.

Underground transportation

Today, there are many cities that have the capacity to incorporate the underground transportation system to deal with the increasing traffic and demand. This will help in designing a smarter future of mobility for the forthcoming generations. It is extremely challenging to navigate through the long built transport system, aesthetically as well as technically. This is the reason why many cities are planning to come up with underground road and rail tunnels that willGet More Info help in transforming the future of mobility.

Adopting Waze, Google, and Apple maps

Today mobile applications like Google maps, Waze, and Apple maps have made navigation too easy for the drivers. It has brought about a paradigm shift in navigation from the traditional method of questioning to locals about the route to a smart way of finding the route yourself through these apps. It helps in getting away with congested routes and makes mobility less challenging. With the continuous upgrade and addition of advanced technologies to such applications, the future of mobility looks to be moving towards efficiency and energy savings.

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Top Innovations in the Automobile Industry You’d be Surprised to Know

From horsecarts and the first steam-powered automobile built in 1769 to supercars and electric vehicles, the automotive industry has come a long way. Innovation is what drives the automobile industry to deliver and exceed customer expectations and change the industry landscape. While it may seem like the automobile industry has hit a brick wall in terms of innovation, it is far from the truth. Automotive innovations take place in both smaller and larger scale from minor improvements in engine performance and fuel economy to driverless cars and automotive telematics. The car industry is rapidly innovating to improve sustainability and decrease its dependence on fossil fuels. Today, the automobiles are not all about the hardware and engines but incorporate software and artificial123 intelligence to become a truly smart car. So, what are the automotive innovations that are transforming the car industry?

Top innovations in the automobile industry

Hydrogen powered cars

Imagine an electric vehicle, which can be refilled similar to traditional processes and provide the same range as conventional cars and trucks. Hydrogen powered cars use hydrogen gas to power an electric motor. It uses hydrogen and oxygen to produce electricity and produces only water and heat as a byproduct. Toyota has taken initiatives to succeed in this area by rolling out Toyota Mirais in California. By 2017, the company already sold as many as 5,3000 Mirais globally. A five minutes refueling can provide a driving range of around 312 miles.

Self-driving cars

To err is human, and self-driving cars don’t rely on humans to navigate safely on the road. Tesla has revolutionized the automotive industry by developing complex AI systems, which can drive far cars more efficiently and safely than humans. Such cars can easily detect road signals, incoming traffic, and sudden lane changes to maintain safety. Additionally, full autonomy will allow fleet management and logistics companies to lower the financial cost of transportation. Tesla cars are equipped with 12 ultrasonic sensors that detect both hard and soft objects at nearly twice the distance of the prior system.

Holographic dashboards

Dashboards are the control panel in a car and provide the driver with the necessary information and alerts. It also allows the user to control specific aspects of the vehicle. But wouldn’t it be cool to control by just looking at it? Porsche just unveiled Mission E, a concept car which can be charged by merely driving over a special tile and has a holographic dashboard which can be controlled just by looking at it. The dashboard instruments in the car are operated by eye-tracking and gesture control systems and some even via holograms.

Mercedes vision van

At CES 2017, Mercedes unveiled their Vision Van, which reimagines how a future van should be like. The vehicle integrates numerous innovative technology by featuring a fully automated cargo space and has delivery drones that can deliver packages up to 2kg till distances up to 20kms. The car is powered by a 75kW electric drive system, which offers a driving range of up to 270km. Vision Van also features a telematics system, which collects and processes data related to the status of the delivery.

Goodyear spherical tire

The auto industry has witnessed numerous automotive innovations relating to cars or driving systems. However, many people wouldn’t have expected innovations in terms of a vehicle’s tires. Goodyear brought some refreshing idea with its concept tire, Eagle-360. The tire was designed with key features of maneuverability, connectivity, and biomimicry to enable autonomous mobility. The tire can communicate with autonomous vehicle control systems to sense road conditions and weather conditions to improve safety and adapt to road conditions. Additionally, the tires also shape-shift to adjust to different terrains and automatically repairs itself.

For more information on innovations in the automobile industry, and the rise of AI and machine learning in the auto industry:

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Top Automotive Companies Across the World

With a majority of the population owning cars in the developed parts of the world, one may be compelled to think that the automotive market is reaching its saturation point. However, that claim is far from the truth as 81.6 million automobiles are expected to be sold by the end of 2018. The major reason driving this growth can be attributed to the growing income in the developing nations. Additionally, people also see cars as a status symbol and often upgrade to a better model for better looks or performance. So who are the top automotive companies in the world fuelling the overall growth? Explore them in this article.

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Top Automotive Companies Across the World
Top Automotive Companies Across the World

#1 – Toyota

Toyota has been dominating the automobile industry for over a decade now. The world’s largest automaker is on the top of the list even after their market cap fell by 13.9% in the past three years. Toyota Prius is their top-selling model with more than 10 million units sold till date. The auto manufacturer has a market cap of $157 billion, which is nearly three times the size of the car company 5th on our list. The automotive company is also the world’s largest hybrid electric vehicle seller with the popular Prius and Camry model available in hybrid electric form.

 #2 – Daimler AG

You may have guessed Volkswagen or General Motors to take this spot, but the recent success of Daimler AG, owner of luxury Mercedes-Benz brand, means they make the number two spot. It is the largest German automaker selling about 3 million vehicles last year. Their luxury brand Mercedes-Benz itself sold around 2.3 million cars in the same period registering an increase of 9.9%. Alongside luxury sedans, the auto manufacturer offers smart cars, trucks, buses, coaches, camper vans, and other mobility services.

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#3 – Volkswagen

One of the top automotive companies in the world, the Volkswagen Group, includes a host of top car brands in the world including Audi, Bentley, Lamborghini, and Porsche. The company is experiencing phenomenal growth with a 4% year-over-year sales increment. At the same rate, it is expected to be the leading auto manufacturer surpassing Toyota very soon. The company sold 6 million units in the year 2016 with VW brand’s Jetta, Bora, and Vento amongst the best-selling brand.

#4 – BMW

The luxury car manufacturer has moved up the ranks significantly in the last few years with sales of over 2 million units in the year 2017. The company is actively contributing to environmental sustainability by focusing its effort towards BMW I, a plug-in electric vehicle. Furthermore, the company has significant motorsport history especially in touring cars, sports cars, Formula One, and Isle of Man TT. BMW 3 Series is their top-selling model with the company reporting sales of over 70,000 in the year 2016.

#5 – Tesla

Although a newcomer in the top 5 listing, Tesla has been making headlines with its launch of Model 3 and Tesla Roadster last year. Tesla completely revolutionized the electric vehicle industry and redefined performance of electric cars. For instance, their electric sports car Tesla Roadster can do 0-60 in 1.9 seconds and provides an impressive range of 620 miles, touching a top speed of 250+mph. Tesla’s CEO, Elon Musk, is a renowned public figure and also manages Space X. The company sold more than 100,00 Model S sedans and Model X SUVs in 2017.

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4 Major Roadblocks to Success in the Automotive Industry

The automotive industry is one of the key adopters of advanced technologies, resulting in rapid innovations and disruptions in this sector.  , the future looks bright for automobile companies. Especially with the recent technological advancements, the industry is grooming itself to take customer experience to the next level. But on the flip side, the journey to success will not be a bed of roses for companies in the automotive industry. The consumers are changing and evolving from an ownership-centric mindset to service-centric demand. This demands businesses to keep track of the changing demands of their market continually. Keeping tabs on the consumer’s demands coupled with the dynamic market trends could prove to be a daunting task for automotive companies. But this is only one of the challenges that companies in this sector need to be aware of. Here’s a list of the top automotive industry challenges to watch out for in 2018 :Request Free Proposal

Rise in globalization

The increasing rate of globalization is undoubtedly good news for the growth of the automotive industry. However, expanding operations at a global level could be a challenging task for companies. Drastic shifts in global sources of supply, combined with strategies to take advantage of emerging markets, gives rise to new challenges related to global trade and international finished vehicle logistics fulfillment. Which means the players in this sector have to ensure that their knowledge about foreign markets, supply chain, and other operational strategies have to be impeccable in order to survive in a global scenario.

Innovation is the need of the hour

The automotive industry is one of the biggest sectors in the world, which means there is no shortage of competition in this industry. Also, the growing inclination of customers towards the latest technologies and customization is forcing players in the industry to update themselves and efficiently cater to customers’ needs. In this situation, it becomes highly challenging for automakers to find new ways to get closer to meeting customer demands while simultaneously maintaining their profitability to gain an edge over other players in the industry.

Increasing regulations

One the most pressing hurdle for the automotive industry is the need to meet rising restrictive emissions and fuel-consumption regulations in the Western world. It’s easy enough for automakers to build a single car model that meets these requirements. However, in the U.S. the problem is that an automaker’s entire model lineup, including SUVs and light trucks, have to maintain an average level of higher mpg and lower emissions. Automobile companies are expected to improve fuel efficiency by at least 20% and as much as 60% by 2025, depending on the company and regulations.

Maintaining costs

Players in the automotive industry have recognized that most of their customers are attracted to the rapidly progressive intelligence and connectivity in vehicles. But designing and producing these smart cars and trucks is no easy task, and it poses real risks. Additionally, the cost of incorporating and managing new technologies and data is skyrocketing. This poses a major challenge for automotive companies when it comes to integrating new technologies cost-effectively.

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