The automotive industry is rushing towards a new era of mobility and sustainable practices. Technology is the key to helping automakers achieve both objectives.
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In addition to ongoing component and semiconductor shortages, the automobile industry is still coping with supply chain and shipping difficulties caused by the epidemic. Despite these persisting disturbances, both internal and external forces are driving the sector toward the future normal, which will include advanced mobility and more sustainable practices. Three Sustainable Change Drivers
There are three primary causes driving the car industry’s push toward sustainability. Some of the most important factors include:
Government Interference
Government agencies contribute significantly to the movement toward sustainable practices. To reach severe carbon-neutral standards, new laws such as The European Green Deal and The Paris Agreement are compelling automakers to seek out more sustainable alternatives.
In addition to numerous carbon taxes, incentives, and subsidies offered by various levels of government to promote the use of electric vehicles, these agreements are also being implemented.
As a result, the auto industry is collaborating closely with the oil and gas industry to construct a sustainable future. Oil and gas businesses are transitioning into energy corporations focused on providing vehicle charging stations and other fuel alternatives to sustain the mobility sector’s evolution.
Altering Expectations
Changes in customer, investor, and even staff expectations have a significant impact on the sector. Consumers who are tech-savvy and environmentally sensitive are putting pressure on automakers to prioritize sustainable practices and alternative fuel models, such as electric automobiles.
In addition to external pressure from customers and investors, many automakers face internal pressure from a fluctuating workforce. Long-tenured employees are leaving the workforce along with their conventional practices and attitudes. They are frequently replaced by a new generation of tech-savvy, eco-conscious, and unconventional personnel.
As a result, an increasing number of employees are now questioning their bosses if they manufacture automobiles in the most environmentally friendly manner feasible, and offering alternative ways to save energy and minimize material usage. Consequently, both external and internal factors for sustainable change are intensifying within businesses.
Megatrends
Several megatrends in the automobile industry serve as significant forces for innovation. These include the development of autonomous vehicles and fleets, the utilization of data from connected vehicles, car-sharing programs, alternative transport-on-demand efforts, and, of course, the paradigm shift in the automotive industry toward electric vehicles.
Increased usage of innovative technologies and the rising production of electric vehicles have fundamentally transformed the conventional method of automobile manufacturing. The transition to e-car manufacturing has rendered some positions obsolete and rendered the old assembly line outdated.
Now, the staff is being retrained to acquire advanced technical skills. Line manufacturing processes are being replaced with modular production methods. The automobile remains in one location and specialized, highly-skilled teams, work on it at various phases of the process. This has a good influence on sustainable measures. It minimizes the amount of space, energy, and labor needed throughout the production process.
