How OEMs and Dealers Can Rise Above the BEV Productivity Challenge
In the era of energy transition, OEMs and Dealers need to do more with less. Surprisingly, the tools for this are within everyone's reach. Everything advances at the speed of light but, if you don't adapt in time, you'll have everything to lose. Let me explain better...
Why does the automotive industry have to do more with less?
Because energy transition is unavoidable and because manufacturers specializing in 100% electric models, like ′#Tesla and various Chinese brands, are raising the bar of competitiveness. Today it's not enough to have a range of electric models, powerful, spacious, and well-equipped. It's essential that these BEVs have good ranges, high charging speeds, advanced and "over the air" updatable software, and access to extensive charging networks with competitive rates. Despite all these benefits, BEVs need to be increasingly cheaper!
Reaching this level isn't easy when trying to manage a progressive transition from combustion engine to electrification. The initial idea of OEMs was to use the profitability of ICE to finance the development of BEVs: but this only worked while EVs were a market niche, fueled by early adopters. From the moment a BEV stopped selling just because it was a BEV and needed to be "good and cheap", other means were necessary.
The era of "good and cheap" BEVs is a strong threat to the stability of the industry and the employment it currently guarantees. There are jobs that will disappear and new areas that need to be filled. Almost all professional roles will require adaptations. It's necessary to produce more, with fewer resources and in less time.
But there are already tools to do more with less. The choice is yours.
All this "thirst for productivity" in the automotive industry occurs at a time when a technology that will revolutionize human work performance is on the rise: Generative Artificial Intelligence.
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Gen AI will allow people to work much faster, to be much more creative and efficient. Correction: it's not "will allow", but "allows". The technology exists and is within everyone's reach, free or at negligible costs considering the potential of the returns. By 2026, more than 80% of companies will have used Generative AI APIs or deployed Generative AI-enabled applications, a significant increase from less than 5% in 2023, says Gartner .
Gen AI will become as indispensable to human productivity as computers, the internet, and smartphones have become. With a big difference: the adoption speed will be much faster!
In the case of the automotive industry, the mix is even "explosive": the need to do more with less is already here and one of the most powerful tools for this is on the market and is accessible! It will happen at the speed of light and whoever doesn't catch "this train", will not have any chance of being competitive with those who are on board!
There's only one barrier to adoption: the natural inertia of humans to adapt to change. Consistently adopting Gen AI in the professional daily life is an individual choice and, if we want exponential effects, a choice of the organization leaders.
Among other topics, in the next edition of the World Shopper Talk-Show, we will share strategies for leaders of importation, distribution, and automotive retail to take full advantage of Gen AI.
Ricardo Oliveira
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