What Are Challenges For Future Automobile Industry?

by Harish Kumar | 12/11/2018
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Although the automotive industry has been witnessing a significant development over the last century, it emerges a plethora of new challenges. Let’s have an insight into the noteworthy challenges driving the global auto industry in years to come.

The automotive industry is a slow-moving industry

The car culture, generally, has been around the corners of our planet. It has become a vital part for not only the global economy but also the lives of billions of people on the earth.  Recovered from the global economic crisis, the auto industry saw the most striking growth in every aspect, especially the development of alternative powertrain and sources of energy over the last century.

Audi EV concept

The automotive industry sees its fastest change within the last decades

Car assembly

However, it is experiencing the slower growth velocity due to a great number of challenges

However, it is common knowledge that the automobile is a slow-developing industry which partially results from the aspiration of owning a fancy car along with affordable costs. For instance, the increasing fuel price is the main obstacle of the festive car demand in India. The Diwali has brought in a number of cars offers, discounts and cash benefits for auto enthusiasts from large automakers like Mahindra, Ford, Maruti Suzuki, Hyundai, Volkswagen, etc.; though, that could not be able to accelerate the sales.

The trade war between two giants: China and America

In reality, one of the largest car markets like China has been undergoing a stunning sales drop of 11% as compared to October 2017. The standstill of the Chinese car market could have a great impact on the growth of automotive corporations in India as well. It comes from the ongoing trade war between China and America foreshadowing the tightened regulations for both two industries. In specifically, the additional tariffs on car imports from both sides affect American automotive corporations like Ford, General Motors and Fiat-Chrysler while European corporations like Volkswagen Group, Jaguar and Land Rover and Volvo are hugely impacted. Besides, the Iranian crisis, Brazil falling out of the BRICS or the trudging of Southern Europe are another challenges for the overall four-wheelers markets.

Chinese roads

The China-America strained relations brings about many bad impacts on the auto space

The Government intervention in environmental pollution

Another irritating issue for the auto industry to face with is the worsening environmental pollution. In India, the alarming level of air pollution forces the Government to release a number of policies to regulate the automobile industry. The BS-VI Emission Standards is going to take effect from April 2020 also brings in great challenges and difficulties for both automakers and car owners. The utilising of the electric vehicle is not sufficient enough to be a resolution to the environment because this source of energy is primarily produced from water or burning fossil fuels that create a similar cumulative harm to the ecosystem. While other alternative renewable technologies like solar energy are still in process of researching, the current auto industry has to tolerate great pressure.

Delhi roads, air pollution

The environmental issue also opens new challenges for the current and future car market

The paradigm shift in powertrain might be the way out for the future global automotive industry in general and the Indian industry in particular. Along with it, the needs of defining the appropriate strategies and customers’ demands, adjusting the penetration and pricing range suitable with the adoption of new features and advanced connectivity could be of help tackle those above challenges. In fact, the all-new solar-powered electric vehicles from Tesla Motors are captivating great attention. The America auto manufacturer is heading to the Indian market by 2020.

Tesla's first steps in solar power and renewable energy might be the resolution

Update the latest car news in India by visiting our website - IndianAuto.com

>>> Also read: 

Tesla To Reach India By 2020

Hyundai Saga EV Concept Debuted

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