The automotive industry is among one of the worst affected industries due to the pandemic. In the U.S. pandemic effects were seen when automakers started sending their office workers home in march end of 2020. Factories were shut down all across North America that skyrocketed the unemployment rate in the U.S. Sales dropped by 47%, but the industry’s engines never stopped running. Leaving the pandemic behind the auto industry has again conquered the market.
A rapid increase in the production process is spotted from the third quarter of 2020 till the first quarter of 2021. In 2020 the auto sales of Ford fell by 15.6% compared to the earlier years. In 2021, Ford roared back by almost doubling wall streets’ earnings expectations. For the third quarter, a slight rise in revenue is estimated for ford. Tesla’s sales in 2020 were recorded as $499,000 that changed to $627,350 in 2021. This data shows that the auto industry is coming back with more power.
Trends in the automobile sector are changing; this time for the cause of sustainability. People are mobbing towards renting or sharing vehicles instead of owning a car as owning a car comes with several responsibilities like maintenance cost, fuel price, etc. It also gives them the freedom to experience top-of-the-class vehicles. They can get a limo hire service for special occasions which is a bit difficult when it comes to buying.
Introduction of electric vehicles and the government support
Electric cars are environmentally friendly as it emits fewer greenhouse gases and air pollutants than petrol and diesel. It also saves money at the pump. Whether hybrid, plug-in hybrid, or all-electric, the demand for electric cars is rising day by day. Apart from this, the electric car market was reshaped after the announcement of Tesla Motors in 2006.
Tesla Motors started producing splendor electric sports cars that could go more than 200 miles on a single charge. Its announcement and subsequent success accelerated the market of electric vehicles. The Chevy Volt and the Nissan LEAF were announced in the U.S. market in late 2010.
The sales of tesla fell in 2020 conquered the market again in 2021. These data show that the auto industry is coming back with more power. President Joe Biden aims to minimize the country’s carbon footprint. He wants to make half of the new cars in the U.S. to be electric by 2030. The government has also come up with new vehicle emissions standards that would reduce pollution through 2026.
It will start with a 10% stringency increase in the 2023 model year. An investment of $174 billion is announced by the U.S. government. To encourage people to shift to cars and trucks that run on electricity, not gasoline or diesel.
Automation and Machine Learning
Technology has transformed the way of doing work in every industry. Automation and Machine learning has made the work simpler and efficient. Artificial intelligence (AI) uses data and algorithms to replicate human decision/thinking ability whereas, Machine Learning is one of SAP’s core intelligent technologies. It focuses on applications that learn from trials, rather than through programming. It also improves the decision-making and accuracy of predictions.
The four leading technologies used in the auto industry:
- Machine Vision: Machine Vision (MV) helps to accomplish the need by providing an automated internal machine examination method.
- Collaborative Robots: Robots that work independently without humans in the workspace.
- Artificial Intelligence for Driverless/Autonomous Cars: Any system that perceives its environment and takes actions that maximize its chance of success to achieve the goal.
- Cognitive Computing in IoT Connected Cars: These technology platforms are based on artificial intelligence and signal processing
Automakers constantly try to make sure that the manufacturing processes and maintenance are superior to the possible extent. They also focus on well-improving driver safety and experience.
Automation and Machine learning has an abundance of benefits. Here are some
- Improving Maintenance & Manufacturing: Processes the technology helps in upgrading the performance of the automobile. By observing, controlling, or anticipating machine breakdown and other common issues. The system uses collected data to analyze the apparatus, compare blueprints with industry and safety standards, and predict machine failure. It also prevents safety risks and also helps in minimizing the costs and increases efficiency.
- Improves Customer Experience: Manufacturers are working to improve the technology to reduce the number of car crashes that take place. It will also be beneficial for disabled people, such as the blind, as it offers more freedom and self-sufficiency.
The auto industry is adopting all the latest technology, to provide benefits to their customers and also trying to reduce costs. It’s focused on cars that are self-aware and provides a connected platform for new business models. Vehicles are geared with internet-connected engine control units (ECUS) and sensors. They are also trying to sell the vehicle with new subscription-based offerings like parking and electric vehicle charging. The future of the automobile industry is driven towards more automation, less inclusion of man, and lesser room for error. The profit margins are about to reach new heights.