The Future Of The Automobile Industry Analysis
As per the McKinsey & Company report on “The Future of the Automobile Industry”, the ecosystem of the industry is changing fast and is becoming more regulated due to strict environmental restrictions and emission control and alternate fuel requirements. Automobile has always been considered as means of both “transportation and personal expression”, but Generation Y of millennial do not concur to that psychology of Baby Boomers. Today automobiles are more about vehicle connectivity, interactive safety and self-driving cars. The value chain of the industry is changing because of the following trends:
1. China Factor: Unprecedented economic growth of the China since the decade of 1980s, resulted in development of world class infrastructure and road connectivity leading to increase in demand of the automobiles. In year 2004, 8.5 million cars and trucks were sold in the country, while the same number was 22.3 million in 2014 and is expected to be 30 million by 2020. This demand is matched by series of domestic manufactures and global players. Premium car segment in China is defining the new customer requirements and expectations. At the same time there are number of regulations, government providing preference to electric …show more content…
Additive Manufacturing/ 3-D Printing: Additive manufacturing or 3-D printing is a process of manufacturing or creating physical objects from the 3-D model data, using successive layers of material like plastic or metal. It has the potential to take the customization to the next level, where the consumer can themselves will create the parts through these printers or fabricators. This will lead to the democratization of manufacturing, as the technology is rapidly evolving from prototyping. It may result in reduction of direct labor, no or low production waste and short change over times. Currently the technology is limited to print or fabricate the components of vehicles, but industry experts are betting on its disruptive capabilities in
1. China Factor: Unprecedented economic growth of the China since the decade of 1980s, resulted in development of world class infrastructure and road connectivity leading to increase in demand of the automobiles. In year 2004, 8.5 million cars and trucks were sold in the country, while the same number was 22.3 million in 2014 and is expected to be 30 million by 2020. This demand is matched by series of domestic manufactures and global players. Premium car segment in China is defining the new customer requirements and expectations. At the same time there are number of regulations, government providing preference to electric …show more content…
Additive Manufacturing/ 3-D Printing: Additive manufacturing or 3-D printing is a process of manufacturing or creating physical objects from the 3-D model data, using successive layers of material like plastic or metal. It has the potential to take the customization to the next level, where the consumer can themselves will create the parts through these printers or fabricators. This will lead to the democratization of manufacturing, as the technology is rapidly evolving from prototyping. It may result in reduction of direct labor, no or low production waste and short change over times. Currently the technology is limited to print or fabricate the components of vehicles, but industry experts are betting on its disruptive capabilities in