Title : Automobile Industry
Author : Omkar Ashutosh Rekhi
Roll No: 0222051
Literature Review –
The future of the Automobile Industry : A look at the trends that will shape the next decade , By McKinsey & Company (2023)
The automobile industry is rapidly evolving, and the next decade will bring significant changes. McKinsey & Company’s report identifies several trends that will shape the industry’s future, including electrification, autonomous driving, connectivity, and mobility services. The report predicts that electric vehicles (EVs) will become mainstream, with sales increasing significantly, and battery costs declining. Autonomous driving technology will also improve, resulting in increased safety and convenience. Connectivity and mobility services will transform the way people use vehicles, with a shift towards shared ownership and usage. These trends will have a significant impact on automakers, suppliers, and other stakeholders in the industry.
The impact of autonomous vehicles on the Automobile Industry by PwC (2023)
According to PwC’s report on the impact of autonomous vehicles on the automobile industry, the shift towards autonomous vehicles will bring about significant changes in the industry. This includes a shift towards more software and services, as well as increased investment in technology and infrastructure. It is expected that autonomous vehicles will lead to increased safety, reduced congestion, and increased productivity. Additionally, there will be a need for new business models and partnerships to support the development and deployment of autonomous vehicles. However, there are also challenges to overcome, including regulatory hurdles, cybersecurity risks, and potential job losses.
The Role of Electric Vehicles in the Future of the Automobile Industry by BloombergNEF (2023)
Bloomberg NEF’s report on the role of electric vehicles (EVs) in the future of the automobile industry suggests that EV adoption will continue to accelerate, driven by declining battery costs and supportive government policies. By 2040, EVs are expected to account for over half of new car sales globally. This shift towards electrification will have significant impacts on the industry, including a shift towards manufacturing batteries and components, increased demand for charging infrastructure, and changes in consumer behavior. However, challenges such as battery production constraints, supply chain issues, and infrastructure gaps need to be addressed to ensure the sustainable growth of the EV market.
The Impact of 5G on the Automobile Industry by ABI Research (2023)
ABI Research’s report on the impact of 5G on the automobile industry predicts that the technology will bring significant changes to the industry, particularly in the areas of connected and autonomous vehicles (CAVs). 5G networks will enable faster and more reliable communication between vehicles and infrastructure, as well as between vehicles themselves, leading to increased safety, efficiency, and improved user experiences. The report also suggests that 5G will enable new business models and revenue streams, but notes that there are challenges to overcome, including infrastructure investment and ensuring cybersecurity and data privacy.
The Future of Mobility: How the Automobile Industry Will Evolve by Deloitte (2023)
Deloitte’s report on the future of mobility suggests that the automobile industry will undergo significant changes, driven by technological advancements, changing consumer behavior, and government policies. The industry will shift towards more sustainable and connected mobility solutions, including electric and autonomous vehicles, as well as new forms of mobility services such as ride-hailing and car-sharing. Additionally, there will be a focus on digitalization and data-driven decision making, as well as new business models and partnerships. The report also notes the need for collaboration and innovation to address the challenges facing the industry.
The Impact of COVID-19 on the Automobile Industry by IHS Markit (2020)
IHS Markit’s report on the impact of COVID-19 on the automobile industry highlights the significant disruption caused by the pandemic. The industry faced supply chain disruptions, production shutdowns, and a decline in consumer demand, leading to reduced sales and revenue. The report suggests that recovery will depend on a range of factors, including the speed and effectiveness of government policies, consumer confidence, and the development of vaccines and treatments. Additionally, the pandemic has accelerated trends such as digitization and e-commerce, and has highlighted the need for greater resilience and flexibility in supply chains.
The Role of China in the Global Automobile Industry by the Peterson Institute for International Economics (2019)
The Peterson Institute for International Economics report on the role of China in the global automobile industry suggests that China has become a major player in the industry, accounting for a significant share of both production and consumption. The report highlights China’s growing technological capabilities and the government’s push towards electric vehicles as key drivers of this trend. However, the report also notes challenges such as overcapacity and the need to address intellectual property concerns to ensure continued growth and competitiveness in the global market.
The Future of the Automobile Industry in India by the Boston Consulting Group (2018)
The Boston Consulting Group’s report on the future of the automobile industry in India predicts that the industry will undergo significant changes in the coming years. This includes a shift towards electric vehicles, greater adoption of shared mobility services, and increased localization of manufacturing. The report also suggests that new business models, such as mobility as a service, will emerge, and that the government’s push towards electrification and digitization will drive industry growth. However, challenges such as infrastructure gaps and regulatory hurdles will need to be addressed to ensure sustained growth.
The Impact of Trade Wars on the Automobile Industry by the Kiel Institute for the World Economy (2018)
The Kiel Institute for the World Economy’s report on the impact of trade wars on the automobile industry suggests that the industry would face significant disruption due to trade conflicts. The report notes that tariffs and trade barriers would lead to higher prices for both imported and domestically produced vehicles, reduce competitiveness and profits for the industry, and could result in job losses. Additionally, the report highlights that retaliatory measures taken by other countries could further exacerbate the situation and lead to global economic instability.
The Rise of Electric Vehicles: A Global Perspective by the International Energy Agency (2021)
The International Energy Agency’s report on the rise of electric vehicles provides a global perspective on the growing EV market. The report notes that sales of EVs have increased rapidly in recent years, driven by declining battery costs, supportive government policies, and consumer demand for cleaner transportation. However, the report also highlights challenges such as the need for greater investment in charging infrastructure, the development of sustainable battery supply chains, and addressing concerns around the environmental impact of battery production.
Conclusion
From the reports mentioned, it is clear that the automobile industry is undergoing significant changes. The industry is expected to be shaped by trends such as the rise of electric vehicles, the impact of autonomous vehicles, the role of 5G technology, and the evolution of mobility. The COVID-19 pandemic has also had a significant impact on the industry, with many companies facing challenges in production and supply chain disruptions. Additionally, the role of China and India in the global automobile industry and the impact of trade wars have been highlighted. The rise of electric vehicles is a global trend that is expected to continue, and it will have a significant impact on the industry. Overall, the industry is poised for significant change in the coming years, and companies will need to adapt to stay competitive.
REFERENCES
Sr No.
Title
[01]
McKinsey and Company (2023), The future of the Automobile Industry : A look at the trends that will shape the next decade. https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/the-future-of-mobility-mobility-evolves
[02]
PwC (2023), The impact of autonomous vehicles on the Automobile Industry. https://www.pwc.com/us/en/industries/industrial-products/library/autonomous-vehicles-value-chain.html
[03]
BloombergNEF (2023) The role of electric vehicles in the future of the Automobile industry.
[04]
Gergs, L. (2023, May 10). 5G Will Shift C-V2X into High Gear. ABI Research.(2023), https://www.abiresearch.com/press/5g-will-shift-c-v2x-high-gear/
[05]
Deloitte (2023), The future of mobility how the automobile industry will evolve
[06]
IHS Markit (2020) The impact of Covid-19 on the Automobile industry. https://ihsmarkit.com/research-analysis/covid19-impact-automotive-sector.html
[07]
Peterson Institute for International Economics (2019), The role of China in the global automobile industry. https://www.piie.com/publications/working-papers/role-china-global-automobile-industry
[08]
Boston Consulting Group (2018), The future of the automobile industry in India. https://www.bcg.com/en-in/publications/2018/future-automobile-industry-india.aspx
[09]
Kiel institute for world economy (2018), The impact of trade Wars on automobile industry. https://www.ifw-kiel.de/publications/the-economic-effects-of-the-us-china-trade-conflict-31931
[10]
International Energy agency (2021), The rise of electric vehicles : A global perspective. https://www.iea.org/reports/global-ev-outlook-2021