Critical Challenges Facing the Automotive Industry

There are always several hurdles to jump over, but right now we see several critical challenges facing this industry around the world.

The automotive industry is one of the largest industries in the world. Many of these different challenges could find their way into the political landscapes of several nations that might create regulations and stipulations that automakers will have to adhere to in order to continue to be allowed to operate in that country.

Excess Production and Related Costs

Early days of the automotive world had vehicles only being built in the domestic nation and those that were offered from foreign lands were shipped to those locations where they would be sold. Currently, excess production can be one of the critical challenges because of the recent COVID-19 pandemic which has slowed sales. Today, we see cars built closer to their targeted market which makes nearly every brand a domestic brand that employs residents of that country.

Connected Technologies

The days of driving around without an electronic device connected to the vehicle are over. In fact, many automakers are now using wireless connectivity which makes it possible to leave your charging cords at home. As these technologies improve, guidance regarding their use, the regulations around driving with a phone in your hand, and the needed to have more functionality vial voice command loom large.

The Self-Driving Evolution

One of the most critical challenges facing every government with regards to the auto industry has to do with self-driving vehicles. Will these vehicles be trustworthy enough to do the job without human interaction? What happens when the system fails? Is there enough security to make this technology tamper-proof? How realistic is the move into self-driving vehicles and how quickly or slowly do we need to make this change?

Sustainability

Emissions are a major concern for the global automotive industry. Regardless of how we feel about it, the fact is that we need to protect our environment, especially the air that we breathe. This is one of the most critical challenges facing automakers. Many countries already have strict emissions regulations in place that automakers have to meet or exceed in order to sell vehicles in that country. Expect regulations to become stricter as governments work to clean up the air around major cities.

A Shift from Ownership to Access

More consumers are shifting away from ownership of vehicles. This means automakers are being faced with the challenge of creating ride-share programs that are affordable and offer several models to choose from when needed. No longer is owning a car part of a status symbol for many city dwellers that don’t often need to drive to get where they want to go.

Whether it ends up on the desks of the politicians in various countries or automakers have to address critical challenges on their own, there are several items facing the current global automotive marketplace. How will automakers and politicians work together to face these issues and create the programs that will lead us into the future?

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