Five Trends which Trigger the Most Potential Change in Global Automotive Industry

The Frankfurt Motor Show which was concluded recently was an eye opener for car owner enthusiasts, investors as well as wishful drivers. It was dominated by mainly luxury cars manufacturers offering technologies which never been implemented before. Mercedes Benz for example, with its S-class IAA promises to be able to deliver more efficiency as the driver accelerates by re-configuring its body aerodynamically.


The first trend which guarantees will be changing the trend is the driverless cars or also known as autonomous vehicles. When it is launched for public to use, it will change a lot of industries from insurance to electronics sector. This includes the auto servicing companies, taxi, car rental industries, commercial parcel delivery services as well as supply change and logistics operations. On top of that the way, the parking as well as its infrastructure also will be changed.

The second trend will be the source of energy which powers up the cars. Instead of using the fossil fuels, cars are moving to renewable energy which may be even be able to generate their own energy. In this way, it could actually help towards a greener environment. The technology is known as Vehicle-to-grid (V2G) technology. The car owners just need to plug the grid to the electric vehicles to charge the vehicles. Furthermore, they also able to upload energy to the grid whenever there is high demand for it and actually get paid for it, which is pretty cool.


Another trend is that the cars mechanical parts will be replaced by computerization. More sophisticated electronics will be installed in the hardware and the car will be implemented with software which may be all the way up until artificial intelligence (AI). Google is already working on something which able to diagnostically evaluate your car, fix it via software updates as well as send you to the nearby mechanic shop in case of emergency.

Apart from the good things which are going to happen, we should not rule out the possibility of automakers losing control. With the example of GM ignition switch settlement which left public unhappy, to the most recent one, the Volkswagen cheating case whereby an algorithm was put in place to detect whether the vehicle is about to undergo emission testing and applied some settings to it so that it can pass the test, it is surely will change the regulatory of the . This of course, is aiming to provide safety for all the road users.


The last but not the least trend is with the agreement between United States and Japan to phase out tariffs on Japanese-made cars and parts as part of Trans-Pacific Partnership (TPP) agreement signed, it will make the Japanese-made cars and parts much cheaper than the neighbouring countries of America such as Canada or Mexico. Apparently, United States did not consult Canada or Mexico prior to the agreement and therefore, there would be re-negotiation about it.

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