The automotive industry has undergone many profound changes yet when you will see its basic structure is still the same as it was hundreds of years ago. The automakers are the main players and have the most power in the automotive industry’s production chain. Companies are trying to come out as a market leader through technologies and new development models. But now these factors are getting outdated to determine who will be a leader because if you will see a normal car it contains around 2500 to 3000 normal hardware and millions of programs.
Why are all these things?
To make automobiles safe and make it environmentally friendly several parameters need to be taken care of designing, styling, improving power and making it more reliable is today’s demand. Electric cars, for example represent the first fundamental change in the design paradigm that has ruled the industry since 1935s. Moreover if the typical car is a multi technological product containing between 5,000 and 10,000 functional components supplied by a multi tier global supply chain, it is fast becoming even more complex. Meeting both customers and regulatory demand is highly interdependent and it requires the best approach.
New solution bring new problems:
Automobiles designing requires in-depth analysis and intensive participation to keep all the process in line. If we compare automobile designing and handsets designing both are far different from each other. Automobiles designing involves digital and high tech simulations of 1000 and 2000 components under intense pressure and in highly interactive environments. They also depend on suppliers to get new designs and on innovators to build a new base of automobiles.
Digital designing has reduced the life of the product but it solves the problem quickly. Suppliers, more participations have reduced automakers’ roles, still for default peace, automakers are made accountable. Number of complaints have increased as more computer controlled functions take the position. By 2030 experts say that 75% of all cars produced and sold worldwide will be connected to digital technology. But software also has its limitations. For example if sometimes software controlled brakes fail, software automatically switches to anti lock braking, which causes sudden thrust and interrupts drivers anticipated deceleration. It gives an uneasy feeling to the driver. Not all automobiles have such problems. But there are many.
How to meet challenges:
Needs of developed countries and developing countries are different. For example Tata Nano and Maruti Suzuki which had established a strong base in India but it would be required to make several changes to be sold in the USA or Europe. Companies that have gathered the process knowledge to system working are best in designing the cars for future. New entrants will have to go through several phases to compete with veterans. Also costumes rely heavily on automakers that have existed for many decades. Government obligations, consumer demand and complexities to come out as well as perform and safe automobiles are basic things to be in competition. Global automobiles prefer simple design for developing countries and complex for developed countries i.e they want to remove homogeneity in designs. We can say that the automobile is the only sector where old leaders are positioned better than new entrants.