How the automotive industry is accelerating out of the turn

#Discussion(IoTStack) [ via IoTGroup ]

As with multiple industries across geographic regions the pandemic has brought a great acceleration of the trends across the mobility value chain that were building before it occurred.Even before the pandemic consumers could explore vehicles online to compare prices; experience virtual 360-degree views of the vehicle; and visit carmaker websites to “build their own cars.” Those features were available even as in many countries including much of the United States the actual sales process itself was required to take place at car dealerships.

Many people still want to interact with a dealer and to see feel sit in and test-drive their vehicles before buying them.Other automakers around the world even those with strong legacy dealer networks are experimenting with new dealer- or manufacturer-led models for selling and servicing vehicles.Those supply pressures aren’t (yet) manifesting in notably higher prices for the consumer; rather the squeeze is being felt across the supply chain with customers getting more car for less money than they did ten or even five years ago.

As with car buying digital is driving greater transparency in manufacturing.This too is an acceleration of a trend that began well in advance of the COVID-19 pandemic.In the case of Toyota dramatic improvements in supply-chain visibility trace back to the Fukushima disaster in 2011 when the company discovered (and then rapidly adjusted for) constraints in key parts and materials that could be traced to the disaster’s effects on the production of microchips by lower-tiered suppliers.A decade later along the automotive supply chain the trend toward higher transparency is accelerating for OEMs and tier-one suppliers alike.In fact for the industry at large we expect that the core autonomous connectivity electrification and smart shared-mobility (ACES) trends will continue to accelerate—particularly in the case of electrification.

During the height of the pandemic in 2020 investments in smart and shared

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