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A Long Term Future Outlook of the Automotive Sector
FREMONT, CA: Customers are quick to adopt even complicated and expensive technology if it makes their life more comfortable. Users value convenience and ease, and these same core values are defining the automotive industry. The industry with the focus on use rather than the production is making the lives of individual users more enjoyable, efficient, and safer. The technology curve will be one of the most effective forces that change the industry, generating massive potentials to reap benefits.
As automotive companies invest a massive amount of human, financial, and capital resources into designing vehicles, there is an enormous influx of autonomous vehicles. From a business model of perspective, consumers being able to order their cars is an attractive option. It would cause several environmental benefits as there are fewer hassle and vehicles on the road. Carpooling feature of ridesharing apps also contributes to this. The market trend shows that consumers will pay for convenience over any other factors when making a purchasing decision. Many automotive companies are too sure that people will not always own their vehicles and are mostly environmental advocates
Currently, there is a startup in California that is working towards using AI technology and cameras to convert current cars into self-driving cars. If customers are spending on making their vehicles autonomous, they would want to purchase a cheaper used car on the secondary market or purchase a brand new, utterly autonomous vehicle as a premium alternative.
In future years it will no longer be enough to focus purely on the production and sale of automobiles. Manufacturers and suppliers are required to rethink their business model to manage the changes across various dimensions. The automotive supply chain will no longer finish at the production door but is expected to extend across all types of use over the entire lifetime of the vehicle through its eventual recycling.