The future of the automotive industry is undergoing significant changes, and for the first time since the coronavirus pandemic started, this future is looking bright – and full of technological advances. With nationwide lockdowns, automakers were forced to reduce their supply or shut down the entire production heavily. However, there is a silver lining. This disruption is a chance for automakers to rethink their business models and adopt a more sustainable approach.
These significant changes generated by the pandemic and tech innovations, together with consumer behaviors and their purchase intention being influenced by the need for a greener environment, are pushing the automotive industry towards a new direction.
Electric vehicles, digitized supply chains, and the development of tech innovations represent the new automotive industry. So, how will it look like exactly?
An eco-friendlier environment
The investment banking company UBS estimates that in less than five years, 20% of all new cars purchased worldwide will be electric vehicles or EVs. This percentage is forecasted to increase gradually by 2030, with people buying EVs solely in 2040. These estimations are based on the fact that many car manufacturers, both premium and not, are changing their business models and plan on producing only electric vehicles in the following years.
This technological revolution will push towards an eco-friendlier environment. The rise of electric cars can slowly decrease the use of vehicles running on diesel or petrol, therefore reducing fossil fuels emissions. The demand for EVs is already significant, with consumers wanting to adopt behaviors that support a cleaner environment. So, the automotive industry will rely on technologies that develop rechargeable batteries.
Smarter manufacturing processes
Technological advances in the auto industry will not only be related to the design of revolutionary cars but also updated and digitized supply chains. The manufacturing processes will have to adapt to the way in which vehicles are produced, so it is necessary for them to become more flexible and have better connectivity.
Such digitalization can heavily reduce specific expenses that automakers have for some materials and improve the response rate to consumer demands. Therefore, with smarter and more technological-based manufacturing and supply chain processes, automakers will be able to improve the overall efficiency of the business, which will support the production of innovative vehicles.
Different job opportunities
Along with all these changes, the job market and prospects within the automotive industry will be more technological. Candidates will have to acquire a new set of skills should they wish to work for an automaker company. From hands-on engineering, employees will have to be highly skilled in computer programming, and their primary area of expertise will be in software development. Plus, these skills will not only be necessary for the manufacturing process but throughout the entire value chain.
Therefore, companies will have to hire specialists based on these new criteria as well as provide more frequent training for the newly-emerged technologies. For aspiring applicants, having in-depth knowledge such as the 9 best language learning platforms would give them an insurmountable edge over other applicants. This business model is more relevant nowadays and includes the changed consumer behaviors. Plus, the two main factors impacting the automotive industry, technology and sustainability, will generate new work opportunities.