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The automotive industry is betting a lot on technology because 2022 looks like it will be a good year for new cars and trucks

Industry and the government work together in the storey of how things get better. A lot of things were put into place in the government’s Union Budget for FY23 to help the country’s economy grow, giving it a better chance to stand out among the world’s other big economies. There will be a lot of changes in the automotive industry around the world in 2022, and they will be visible in different parts of the world. In this picture, India is shown as a country that is getting better at technology and building things like roads.

As the industry moves on from COVID-19, there are still some concerns about how the virus will change in the future, as well as a shortage of semiconductors and changes in input costs. The positives, on the other hand, outweigh the negatives as we cautiously look forward to the new year.

D2C

Over the last few years, there has been a big shift in the way people use technology. Content streaming apps have released more movies and TV shows over the past two years than all of the big production studios put together. This is a good way to see how people’s tastes have changed. In addition to entertainment, the use of the internet as a go-to has spread to areas such as FMCG and medicine, as well as the auto industry. Booking cars online isn’t a new thing anymore, but it’s becoming a lot more common for automakers even though customers are still afraid to leave their homes. Companies like market leader Maruti Suzuki have already started taking online orders for new cars as well as taking people for test drives.

A lot of people think this will happen in 2022. Automakers are expected to interact directly with their customers through online bookings, sales, and even service after the fact. Parts for cars and other things that need replacing are expected to become easier to get online, which will benefit the auto parts industry as well.

Premiumization of Cars

As India’s GDP growth rate picks up again, and as people have a better standard of living, they want cars that are “one category above.” India has seen a lot of changes in car and two-wheeler ownership over the last few years. People in India want to push the limits when they buy their dream car or two-wheeler. Component manufacturers will make more money if more people buy more expensive cars, and this trend is likely to continue through 2022 and beyond.

Evolution of mobility

Electrifying cars is one of the most talked about topics in the industry. In 2022, automakers and component manufacturers will be working hard to build better infrastructure and technology to help them sell more cars. This year, more attention will be paid to improving battery technology and charging infrastructure in the country so that more people can drive greener cars.

In addition to the rise of electric cars, there is also the rise of connected mobility. This is how software and hardware work together in today’s cars: Today, many cars have AI assistants and other automated features, like lane assist, assisted braking, and adaptive cruise control, that make them easier to drive. Electric scooters, too, have touchscreens and other smart features, but they aren’t the only ones. Newer and better ADS have been making their way into two-wheelers as well as HCVs and cars, but the trend isn’t likely to pick up until 2022.

Exported goods – China plus one

Even though the U.S. auto industry is coming out of a two-year slump, exports of vehicles and parts are expected to help margins and grow faster than local sales this year. People in Europe are expected to lead this growth, with more green shoots of recovery and a return in demand. India is going to start implementing a lot of new policies that will help businesses compete around the world. This will make China less profitable as a place for businesses to go.

There will be a Production-Linked Incentive (PLI) scheme set up by the government in 2021 that will help the auto parts industry get back on its feet. It will help pay for the development of new auto parts for a future-ready auto industry. The scheme could help India become even more of a global manufacturing centre, making parts in India for the rest of the world. When domestic manufacturers get big and have a lot of experience, the scheme could help even more.

In the short term and long term, there are problems

In the short term, the threat of Omicron and other mutations would keep people from being too optimistic. It’s still possible that the government’s push to get people vaccinated is working, though. According to government data, more than 1.7 billion doses have been given.

On the supply side, problems with the production of semiconductors would keep the production-delivery equation tight. In-demand cars are expected to have longer waits over the next few months. Over the first half of 2022, this shortage of semiconductors is expected to have an impact on production as well. This is because more and more mobility options are reliant on technology and the need for semiconductors grows.

There is still a concern in the long run about how well-defined roles should be set up for OEMs and auto parts companies to share their expertise in technology in order to make more cars and parts in the United States. The value chain must be optimised to make sure that solutions are made for a wide range of people, so that they can be used to their full potential.

There are problems, but they aren’t insurmountable. A change in the way people think about cars and how they use them gives the automotive industry a little hope for the year. The industry wants to break through the low numbers in 2021.

About the author

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Kathy Lewis

Kathy Lewis is an all-around geek who loves learning new stuff every day. With a background in computer science and a passion for writing, she loves writing for almost all the sections of Editorials99.

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