Blog Posts

The Revolution of the Automotive Industry

car shop

The automotive industry has already been undergoing significant transformations way before the global pandemic. The rise of ridesharing and carpooling enterprises and the campaign for eco-friendlier manufacturing methods and products are just a few of many factors that started the revolution of the auto sector.

As the world faces the “new normal,” so too will the motor industry. Here are the four key factors behind the automotive industry’s revolution.

21st-century Adjustments

Technological Advancements

Saying that Tesla changed the auto industry is an understatement. As of April 2021, Tesla is recorded to have its market capitalization at $399.3 billion. Due to Tesla’s rapid success in 2020, established auto companies have also started making electric and hybrid designs. The US government has even openly discussed the ways to regulate autonomous vehicles.

It’s safe to deduct that future designs of automobiles would be more centered on computing power instead of horsepower. Especially since the race to manufacture the perfect self-driving vehicle is getting crowded.

Another big change is the shift from offline services to online. Over the decade, the digitalization of the processes has grown swiftly. Marketing and sales and be easily recorded. Data encryption has saved transformed space utilization in dealerships, big or small. With the recent pandemic, auto companies went even farther and adjusted their sales processes to become more efficient and comfortable. The paperwork needed to finish a transaction can now be done within a few minutes.

With the current pace of technological growth the world is experiencing, getting the optimal buying experience within a single press of a button would be possible in a few years.

Younger Market

The biggest concern of any traditional enterprise should be the surge of Gen Z consumers. The rise of the Gen Z demographic will be problematic for any business that fails to understand who they are and how to interact with them.

Possible customers from this generation are more socially aware and environmentally conscious than all the ones before them. And with them being 20.35 % of the US population, automotive companies would have no other option but to adjust accordingly.

This will result in more modern marketing techniques. It won’t be just selling mere products. Auto dealerships must resort to selling an experience instead. Marketing strategies will be more focused on building communities and maximizing social media platforms.

Designs of cars will also have to be more centered on individuality and identity. The engineering makeup of cars will be focused on personalization and customization.

luxury car

Post-pandemic Cultural Effects

Economic Stability

The COVID-19 pandemic is not only a health crisis. It has been one of the biggest economic catastrophes of the modern world. More than half of the nation’s population was caught financially unprepared. This might have opened people’s eyes to the value of saving. With this in mind, a huge percentage of people might focus more on preparing for the next pandemic.

Even with a higher demand for cars, the purchasing budget might be smaller. This would lead to the resurgence of the used car market. Since people still need to buy cars even with smaller budgets, used car dealership franchises would land a bigger role in the automotive industry. And when the used car sector eventually goes digital, accessibility to a bigger will turn them into a bigger competitor of the automobile goliaths.

Health and Safety Hazards

Public transportation and ridesharing might take a turn for the worst for the foreseeable future. With the pandemic still burnt on people’s minds, the demand for ridesharing services and public transportation might slowly decrease. As social and physical distancing becomes a norm overseas, the demand for owning a car will slowly but surely skyrocket.

Smart cars with HWW or Health, Wellness, and Well-Being features will also become mainstream. The whole world starting to become more conscious of the importance of cleanliness of both the body and its surroundings. Newly developed HWW features such as ionizers are used to purify the air within the vehicle.

There are also features that monitor pollen and allergen levels of the drivers. Palm and facial temperature monitors can also be installed. Newer models now have built-in systems for checking heart rate, blood pressure, breathing rate, and even glucose level. A driver’s drowsiness, fatigue, and stress level can also be automatically detected now to avoid accidents.

The automotive industry has been one of the driving forces of globalization and scientific innovation. And now, the time for the industry to change is moving closer. But it is not something that you should fear. Revolution and change can always lead to reinvention and success.

About the Author


Scroll to Top