AUTOMOTIVE INDUSTRY – THE BIG PICTURE

A car is the most complex product on the market today, in terms of development and manufacture. It require a relevant amount of intellectual, capital and human investment to produce. The market related to automotive production is second to none, and vehicle production drives multiple sectors of national and international interest including areas related to energy, emissions and safety. Manufacturing a vehicle requires a multi – billion dollar investment, and is one of the highest tech operations in the manufacturing sector. Certainly, automotive plants are one of the largest wealth generators in the industrial world.

So, it’s obvious that the automotive world is enormous an full of knowledge to be understand. Before to go deep in this world is better understand what is called the big picture: how many cars are produced every years, where and who are the players in the market; these are some of the information that help you to understand your world and the dynamic that concern about it. It’s relevant, because it will help you, as a professional, to develop a vision of the future of automotive and try to anticipate the market and improve your skills.

This is an accurate picture of how global markets are performing, which are divided in area regarding of government laws applied to the car in terms of safety, emission and taxes.

• EMEA: Europe, Middle East, and Africa : 27.9
• LATAM: Latin America : 4.4 %
• APAC: Asia Pacific : 46.6 %
• NAFTA: North American Free Trade Agreement : 21.1%

And this is the list of car maker ordered by sales:

It’s gonna be so eascy:

The automotive future is electrified, autonomous, shared, connected and yearly updated

• Electrified vehicles are becoming viable and desirable. Hence, in 2030, the share of electrified vehicles could range from 10 to 50 percent of new vehicle sales. With battery costs potentially decreasing to USD 150 per kWh over the next decade, electrified vehicles will achieve cost competitiveness with conventional vehicles. Adoption rates will be highest in developed, dense cities with strict emission regulations and consumer incentives (Emission/efficiency regulation: EU 95 gCO2 /km, 2021; US 54.5 mpg, 2025, CA 15% ZEV 2025).
• Fully Autonomous vehicles (AVs) are unlikely to be commercially available before 2020. Meanwhile, advanced driver assistance systems (ADAS) will play a crucial role in preparing regulators, consumers, and corporations for the medium-term reality of cars taking over control from drivers. Once technological and regulatory issues have been resolved, up to 15 percent of new sold cars sold in 2030 could be fully autonomous.
• Consumer mobility behavior is changing, leading to up to one out of ten cars sold in 2030 potentially being a shared vehicle and the subsequent rise of a market for fit-for-purpose mobility solutions. Consumers today use their cars as “all-purpose” vehicles, no matter if commuting alone to work or taking the whole family to the beach. In the future, they may want the flexibility to choose the best solution for a specific purpose, on demand and via their smartphones.
• The networking of cars with the outside world – summarized by the concept of the Connected Car. This term actually represents two concepts at once. On the one hand, it applies to Car2Car and Car2X communication, which is the networking of the car with other cars or with the transport infrastructure (such as traffic lights). On the other hand, the term also covers the networking of vehicle occupants with the outside world. In future, they will be able to communicate, work, surf the internet or access multi-media services during the journey
• The development topics of electrified, autonomous, connected and shared will lead to a clear increase in the rate of innovation within the automotive industry. Model cycles of five to eight years, which have always been common in this sector, could soon be a thing of the past. Instead, the range of models will be updated annually in order to integrate the latest hardware and software developments. As customers will naturally not want to buy a new vehicle every year due to the high purchase costs, the short innovation cycles will enter the market primarily through regular upgrades of shared vehicles.

#Maufacturing #Engineer #Automotive