THE NEW TREND IN CAR DEVELOPMENT

THE NEW TREND IN CAR DEVELOPMENT 

Every car maker today seeks the best and most advance way of making mobility more luxurious, fast and reliable, not necessarily affordable though. Making materials out of ultra-light weight stronger than still materials that fits the sleekly well streamlined body of today's cars. With one step leading to another and the industrialization revolution, thing are becoming more autonomous than ever before. Aside the autonomous races, many car manufacturers are beginning to highlight the importance of more developed engines, efficient in burning of gas. Every one at a point has ventured into Hybrid engines, utilizing both combustion and electric engines to run the wheels which have in turn changed the way we look at the automobile industries. 

What’s driving change

From the ground level, three powerful forces are roiling the auto industry: shifts in consumer demand, expanded regulatory requirements for safety and fuel economy, and the increased availability of data and information.

Shifts in consumer demand. Consumers appear to be rethinking their long love affair with individual automobile brands and viewing cars more as transportation machines. Although this is not likely to have a major impact on sales volume, it is affecting how much people are willing to pay for automobiles. That willingness is also affected by the waning of product differentiation, due partly to a general increase in vehicle quality throughout the industry. The Detroit Three have caught up with Japanese OEMs, and the mass market is catching up with luxury. Consumers are also demanding more sophisticated infotainment systems at a low price, and are expecting more high-end features to be standard.

Major transitions are under way that will transform auto manufacturing over the next 10 years.

Expanded regulatory requirements. Tighter corporate average fuel economy (CAFE) regulations in the United States as well as the rest of the world are more expensive for OEMs to comply with, requiring higher volume to amortize increasing costs. Regulators are also mandating that more safety-related features, such as backup cameras, be included as standard equipment on new models, adding further to costs.
 
Increasing availability of data and information. Information about vehicle usage and driver behavior usage is proliferating as sensors and telematics systems become more common. All players across the automotive value chain are interested in collecting more customer and car data, but uncertainty about how to use it is still widespread. Meanwhile, consumers are awash in easily accessible information about automobile specifications, prices, discounts, quality, and performance, giving buyers greater bargaining power.
(As published on http://www.strategyand.pwc.com/perspectives/2015-auto-trends)