MKT3026: Automotive Industry Trends and Opportunities Report

This report provides a comprehensive analysis of the automotive industry, focusing on the impact of emerging trends and the resulting entrepreneurial opportunities. It begins with an introduction to the automotive sector, outlining key players and the influence of evolving customer behaviors. The report then delves into the impact of specific trends, including electrification, autonomous driving, enhanced communication systems, the rise of cobots, blockchain technology, 3D printing, and vehicle upgradation, alongside the emergence of new mega city cars. The analysis further identifies entrepreneurial business opportunities arising from these trends, such as automotive software management systems, Usage Based Insurance (UBI), self-driving and connected vehicles, vehicle health tracking, and electric vehicles. Additionally, the report explores opportunities in digital buying, including connectivity and data integration, supply chain optimization, and the expansion of EV chargers. The report also highlights opportunities in restaurants, cafes, and the hospitality sector. The conclusion summarizes the key findings, emphasizing the need for innovation and government support to foster a sustainable future for the automotive industry, with a focus on eco-friendly vehicles.

RUNNING HEAD: Automotive Industry 0
Automotive industry

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1 Contents
1. Introduction...................................................................................................................................2
2. Impact of emerging trends on Automotive Industry......................................................................3
2.1. Electrified..............................................................................................................................3
2.2. Autonomous..........................................................................................................................3
2.3. Communication.....................................................................................................................3
2.4. Rise of cobots........................................................................................................................4
2.5. Blockchain.............................................................................................................................4
2.6. 3D printing.............................................................................................................................4
2.7. Upgradation...........................................................................................................................4
2.8. New mega city cars................................................................................................................4
3. Entrepreneurial business opportunities arising as a result of impact of trends...............................5
3.1. Automotive software management system.............................................................................5
3.2. Automotive Usage Based Insurance (UBI)-...........................................................................5
3.3. Self-driving and connected vehicles......................................................................................6
3.4. Vehicle health tracking Monitoring.......................................................................................6
3.5. Electric vehicle......................................................................................................................6
4. Digital buying................................................................................................................................7
4.1. Connectivity and data............................................................................................................7
4.2. Supply chain optimization.....................................................................................................7
4.3. Electric vehicle (EV) charger.................................................................................................7
4.4. Restaurants and Cafes............................................................................................................8
4.5. Hospitality.............................................................................................................................8
5. Conclusion.....................................................................................................................................9
6. References...................................................................................................................................10

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1. Introduction
Automotive companies include manufacturing companies involved in the manufacture of the
motor vehicles or the parts of the vehicles such as body or the engine of the vehicle, but it
does not include companies into manufacturing of tyres and batteries. Industry includes
products such as trucks, vans, mini trucks, pickups and bus. Few leaders in vehicle
manufacturers are Nissan motors, Hyundai, Toyota, Volkswagen. Customer behaviour and
choice changes with time, customer expects better and improved products with passing time.
And the customer behaviour and demand enable the change in emerging trend. Therefore,
demand for automation and digitalisation is increasing (Gao, 2016). Trends of manufactures
are changing towards electric eco-friendly vehicles, self-driving technology in vehicles and
autonomous vehicles. Autonomous vehicles are introduced which are based on Artificial
Intelligence. These vehicles are not totally dependent on human, as they move through an
electronic access. Today’s emerging trends such as empowering of digitalisation and increase
in automatically operated vehicles have introduced electric vehicles. Therefore, automotive
upgradation also provided with business opportunities such as digitally buying of vehicle and
online assistance of the guidance regarding the vehicle driving. It also provided with
insurance business opportunity, in which the insurer provides with the safety of the vehicle
and also the supply chain optimization as a business opportunity.

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2. Impact of emerging trends on Automotive Industry
Automotive companies such as Ford, Nissan, Hyundai and other automotive companies
which are involved in the manufacture of the cars and parts of cars such as engine of the car.
Trends are changing with time toward digitalisation and automatization. Therefore, people
also expect innovation in the technology, which make them demand for improved trends.
Which impact on the market and the companies, companies tries to bring other innovative
and improved options for its customers. Therefore, this trend impacts manufactures of the
automobile industry, which motivate them to bring technology upgradation, automatization,
autonomous vehicles, self-driven and eco-friendly cars. In today’s trend of digitalisation and
automatization, AI (Artificial Intelligence) is applied for upgrading vehicles. Today, there is a
trend of urbanisation emerging where people are shifting to cities from small town. And this
creates pressure on the development of IT sector and demand for innovation. And the people
are switching their approach towards “smart city” which create demand for better technology,
energy, better buildings and cars (CEIBS, 2014). Electric vehicles are expected to attain a
balance between demand of vehicles and lack of resources. The extent to which the vehicle is
automatic depends on the dependency of the vehicle on the human factor. Impact of emerging
trends on automobile industry are-
2.1. Electrified
Vehicles are turning into electrified form which uses renewable source of energy. The natural
resources are lacking behind, due to their deficiency innovative and electric ways are used to
charge vehicles. Using electric way to charge vehicles will help to save the natural resources
and EV will prove to be an eco-friendly option of travelling.
2.2. Autonomous
Development and innovation in vehicles will enable vehicles to be less dependent on human.
Therefore, automatic ways will reduce the need of human at each level of maintenance of a
vehicle (Berings, 2017). Therefore, people can save time and invest their time in more useful
areas. Autonomous vehicles will also result into a proper management of traffic rules and
ease through self-driven cars.
2.3. Communication
Communication between the traffic management outside the car and the outside world with
the vehicle occupants will help to create a link and keep home and workplace connected. This
will also ensure ease of communication and overall save the efficiency of an individual

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(Berings, 2017). People in touch with the vehicle, who are physically present at another place
can also track the car from any area.
2.4. Rise of cobots
Robots are used for elements that are dangerous and should not be done by humans. Now
robotics, are working with combined effort of humans and machines which is called as
collaborative robots or cobots. Some of the companies who adopted this method are Nissan,
Ford and BMW (Industry Europe, 2019). This will combine the efficiency of both human
mind and the machine. Cobots may result to a great impact of the emerging trends and can
also prove into a great business opportunity for future growth.
2.5. Blockchain
Automobile industry faced challenges such as people selling duplicate parts of car. Therefore,
Blockchain incorporated to enable transparency and trusted protocol (Quest, 2018). The
emerging trends bought transparency in manufacturing companies and their guidelines which
are specified digitally enables to detect fraud actions.
2.6. 3D printing
3D printing is a cost efficient way to protect a car from crashes, so that when the car crashes
it destroys only the outer part and this saves from major destruction and only outer part can
be replaced in a single crash (Quest, 2018). The life of a car can be increased by this
technique, as the car can be saved from major damage.
2.7. Upgradation
Due to change in trends, upgradation is required which will result into updated range of
models to obtain the combination of latest hardware and software development. Since, the
demand of the customers is changing, therefore, it provides customer with the updated
features for their changing requirements (Berings, 2017).
2.8. New mega city cars
These are autonomous cars that existed as “connected cars”, which provide with a new
technological opportunity. These are autonomous cars which can also locate the free parking
space within the city. The car is internet connected, through a technology to operate engine
automatically (New Atlas, 2010). Vehicles have been developed using Artificial Intelligence
(AI) to operate the vehicles automatically. Example- BMW introduced Mini-E with a vision
of greener future. Which operates on electric charging and does not need fuel to run the car,
which safe the environment from air pollution and also helps to save the natural scarce

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resources. It is an electric car by BMW, which provide features of autonomous mega city cars
(Wired BMW, 2018).
Source from: (Wired BMW, 2018)
3. Entrepreneurial business opportunities arising as a result of impact of trends
3.1. Automotive software management system
Software system is used by many automotive companies to generate revenue and gain
business opportunity. 5IQ software is one of a software which can generate income for an
automobile company. This software contains 3 phases-
 Desktop app
 Technician app
 Customer app
3.2. Automotive Usage Based Insurance (UBI)-
It is also a business opportunity in which insurer safeguards and enable transparency for the
automotive insured. Factors that have to be insured are background of the driver, distance
travelled, category and type of the vehicle used. UBI promotes the safety, to avoid accidents
with an exchange of revenue earned by the company (Alfred, 2019).

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3.3. Self-driving and connected vehicles
Since, self-driving is dependent on the internet, WIFI, GPS, Bluetooth, 4G and 5G.
Therefore, the payment gateway can provide with a business opportunity in automobile
companies.
3.4. Vehicle health tracking Monitoring
It is an important part of the safety to identify automotive biometric of an autonomous
vehicle and also the behaviour of the driver is monitored though this monitoring system, such
as exhaustion, heart rate, alcohol level and lack of sleep can be monitored to check security
(Alfred, 2019).
3.5. Electric vehicle
Electric vehicle is a great business opportunity for start-ups. Start-ups have an opportunity to
introduce new and innovative models of EV. Due to the change in the emerging trends, the
customers will demand for innovative technology, since the already existing companies are
providing with the older technology, new companies can enter market with a newer and
better technology of EV.
Source from: (Fleetcarma, 2018)

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4. Digital buying
The customers can check the driving experience of the vehicle at home, which they are
planning to buy. The customers can take assistance regarding the vehicle directly through app
or digitally without any personal and direct contact with the dealer of the vehicle (Alfred,
2019).
4.1. Connectivity and data
The vehicles must include connectivity tools such as WIFI, music, Alexa, social media and
advanced mobile apps while driving. Therefore, it will assist in providing patterns of traffic,
driver routes and data on destinations. This ease of data and connectivity will give customer
an opportunity to work while travelling.
4.2. Supply chain optimization
Supply accuracy can be enhanced through a software known as auto ERP software, as it helps
in ease of communication with the vendors. Electronic data interchange is helpful and would
help to reduce wastage and maintain the supply chain which can prove as a great business
opportunity (Alfred, 2019).
4.3. Electric vehicle (EV) charger
EV charger can provide a low investment business opportunity. Hence, ease of EV charger
will enable increased demand of electric vehicles. Therefore, it is a great business opportunity
for future as electric charger will be required for future growth of Electric Vehicle (Mansor,
2017). It is a good business opportunity for the shopping centres and grocery stores to
provide its customers with EV plug facility and educational institute to provide their students
with this facility (EV Connect, 2019).

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Source from: (Energy Efficiency and Renewable Energy, 2017)
4.4. Restaurants and Cafes
Restaurants can provide services to environment friendly customers for charging plug
services to its customers for the time the cars of the customers are parked. This will provide
restaurants with a new business opportunities and will also enable the customers to stay at the
restaurants longer and order more, till there vehicles can be charged (EV Connect, 2019).
4.5. Hospitality
Electric vehicle plug facility attracts eco-friendly customers to hotels. Customers travelling
through electric vehicles will prefer to go to hotels proving the EV plug facility. Many hotel
chains such as Marriot and Hilton provide their customer with the EV plug facility to
customers travelling through EV (EV Connect, 2019). And it will also be convenient for the
customers with EV, as they would need electric charging while travelling and people will go
to eco-friendly option of EV only when they have charging ease while travelling.

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5. Conclusion
There are number of automotive manufacturing companies such as BMW, Honda, Suzuki and
Ford involved in manufacturing vehicles and their parts. Since, there is a change in present
scenario with introduction of trends such as digitalisation and autonomous vehicles.
Therefore, the demand for innovation is increasing as a result of impact of new trends
prevailing in the market. It impacted as increase in the demand of the electric vehicles,
automatic vehicles, self-driven vehicles and vehicles with digital features. These trends
provided with business opportunities in hospitality industry, restaurants, cafes, educational
institutions and shopping centres. It also provided with business opportunity to insurance
companies providing insurance for the digital electronic vehicles and business opportunity for
buying vehicles digitally without making a personal physical contact with the agent. EV also
helps to save vehicle, as almost all the countries are lacking in fuel and that makes the fuel
expensive and it becomes very difficult to manage with expensive fuel for people. And, also
vehicles consuming fuel causes pollution, so it is a better option for people to move to EV, as
they are eco-friendly. Therefore, government must give tax exemptions and other benefits to
automotive companies working to produce eco-friendly cars to motivate them, because this
will help to bring a better future.

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6. References
Alfred, M., 2019. Global Automotive Industry Analysis. [Online]
Available at: https://fiiviq.com/blog/top-automotive-industry-trends
Berings, S., 2017. Five trends transforming the automotive industry. pwc.
CEIBS, 2014. Smart Cities & the Auto Industry. [Online]
Available at: https://www.ceibs.edu/smart-cities-auto-industry
Energy Efficiency and Renewable Energy, 2017. Energy Efficiency and Renewable Energy. [Online]
Available at: https://www.energy.gov/eere/vehicles/articles/fact-995-september-18-2017-electric-
vehicle-charging-home-typically-draws
EV Connect, 2019. 5 Businesses that can Benefit from Electric Car Opportunities. [Online]
Available at: evconnect.com/blog/5-businesses-that-can-benefit-from-electric-car-opportunities/
Fleetcarma, 2018. Electric vehicles sales update Q3 2018, Canada. [Online]
Available at: https://www.fleetcarma.com/electric-vehicles-sales-update-q3-2018-canada/
Gao, P., 2016. McKinsey. [Online]
Available at: https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/
disruptive-trends-that-will-transform-the-auto-industry
Industry Europe, 2019. 3 Automation Trends With A Big Impact On Auto Manufacturing. [Online]
Available at: https://industryeurope.com/3-automation-trends-with-a-big-impact-on-auto-
manufacturing/
Mansor, A., 2017. flevyblog. [Online]
Available at: http://flevy.com/blog/3-business-opportunities-in-the-booming-electric-vehicle-
market/
New Atlas, 2010. BMW Megacity electric vehicle. [Online]
Available at: https://newatlas.com/bmw-megacity-vehicle/15636/
Quest, 2018. Top Five Emerging Trends Transforming the Automotive Industry. [Online]
Available at: https://www.quest-global.com/top-five-emerging-trends-transforming-automotive-
industry/
Wired BMW, 2018. BMW Goes Mega-Green With Megacity Eco-Cars. [Online]
Available at: https://www.wired.com/2009/03/bmw-goes-mega-g/