Driving Transformations: How New-Age Technologies Are Disrupting And Redefining The Automobile Industry
Autonomous, electrified, connected, personalized, consolidated, digitized, and omnipresent — these are the buzzwords going around in the automobile industry in this day and age. Along with shaping our everyday lives, new-age technological interventions like AI, ML, Data Sciences, and IoT etc. are tremendously impacting the way each industry and its segments function as well. The automobile industry, one of the biggest beneficiaries of this tech-led revolution, is undergoing a transformational change all around the world at present. Moreover, be it the new segment or the pre-owned one, gone are the days when buying a car was a very time-consuming and exhaustive process—having a car to oneself is now a few casual clicks away.
With factors like changing consumer preferences, hiked fuel prices, and capacity crisis etc. significantly affecting the market, it has become imperative for players of the industry to constantly innovate and develop to fulfill the ever-rising demands. In this hyper-connected world of today, here is how new-age technologies are enhancing both the mobility as well as the sale and purchase experience.
Enhanced mobility experience
The time is gone when the most that mobile phones could do was make calls and send out SMSs—and similarly, the time when cars could only be driven and parked is gradually passing, too. These days, automobiles are becoming smarter with more advanced capabilities, better fuel efficiency, autonomous driving, and more personalized experience. While there lie limitless possibilities for how cars can possibly improve the lives of drivers and passengers to make it safer and more hassle-free, the automobile industry has already paved way for technologies to catalyze its rapid evolution. For instance, electric and hybrid vehicles are in vogue—not only are these comparatively environment-friendly because of reduced carbon emissions but are also in the affordable range now.
Furthermore, as predictive automobile technologies are emerging in the scenario, the driving experience is becoming all the more personalized. From applying algorithms that utilize data for automated processes during the vehicle setup to enabling better connectivity with smart devices—vehicle manufacturers have been leveraging technological tools like AI, ML, Big Data, IoT etc. for improved user experience. Now, one can simply implement internal actions by way of voice commands, get real-time updates as to when the vehicle needs servicing and be warned about safety hazards and malfunctions beforehand, among others. In this manner, predictive technologies are not only facilitating a personalized experience but are also increasing the safety and convenience quotient for drivers.
Increased autonomy is also being observed in the automobile industry at present. While some players have already begun testing their self-driving facilities on open roads, there is still a long way to go for this technology’s widespread adoption within the industry. Semi-autonomy has already been brought about in the global market by way of cameras in the front and back, automatic-braking sensors, mapping technology, self-parking capabilities, motorway-lane sensors, and other driver-assisted technologies. As newer technologies and subsequent developments are emerging in and disrupting the scenario, having a completely self-driven car as one sits back and oversees will be a dream no more soon enough. With the industry witnessing impactful collaborations between some of the renowned tech players and automobile players, the mobility experience is projected to continue improving by leaps and bounds.
Enhanced buyer and seller experience
When one says the automobile industry is undergoing a steady tech-led revolution, it signifies growth just not in terms of innovations and profitability but also in terms of consolidation and digitization. In a largely fragmented and unorganized market, the emergence of online players has significantly aided in consolidation along with helping in addressal of the supply-demand need-gap. With more dynamic, instantaneous, effective, transparent, and seamless processes, digital technologies are enhancing the entire automobile sale and purchase journey experience for customers at both ends.
In this digital era when the internet is steadily becoming as necessary infrastructure as electricity, new-age technologies are phenomenally changing the way vehicle transactions take place. While a significant share of the sale and purchase experience still lies with the traditional offline mode, online channels are increasingly gaining traction among the end-customers. As the fourth-largest automobile market in the world, the transition to digital channels was but organic for India. However, it is surprising how inclined the country has been towards this mode, of late. According to a recent report titled ‘Drive to Decide 2018’ curated by Google and Kantar TNS, approximately 96% of potential car buyers leverage internet searches during their purchase journey, whereas offline touchpoints have witnessed a drop of 50%.
As an unprecedented share of people embarking on their automobile purchase or sale journey turn to the online channels, it has become imperative for the experience to be made as easily accessible, transparent, cost-effective, and convenient as possible. Moreover, since the offline channels still hold a predominant position in the market, there is a severe need for seamless integration in the ecosystem, so as to assert more impact on the customers. As players of the industry have begun tapping into the massive potential of having an omnichannel presence, it has paved way for a more immersive buyer and seller experience to be created.
Moreover, by leveraging AI, ML, and algorithms etc. omnichannel players are bringing about greater convenience while bridging the need-gap. Since buyers would take months to decide on a car while sellers are willing to sell within a few days, there exists a huge demand-supply gap in the market, especially in the pre-owned segment. Amidst this, omnichannel platforms are developing innovative tech-led tools to help buyers overcome their inhibitions regarding the right price, the vehicle condition etc., and make a lucrative car purchase decision thus. Through such innovations, these platforms are playing a key role in building an effective ecosystem around the automobile sale and purchase journey.
The automobile industry all around the world is robustly evolving and the emergence of newer technologies will only lead to further innovations and development. With such tech-led transformations taking place in the scenario, it is safe to say that the road ahead for the automobile industry is a wonderful ride!
