The growth was not merely limited to the Automotive industry, it also had a positive effect on the various other industries which flourished by this key element. The automotive industry required the steel industry and machine tool-makers for the ever-increasing supplies and components for the engines, chassis and other metal fixtures of the cars. Apart from these, every car require a battery, head light, interior upholstery and paint. Entirely new businesses, or subsidiaries of existing business, were created to meet the needs of the automobile industry as it grew incrementally year after year. Car businesses are not constrained till its production; it accounts for hundreds of millions in revenue as the insurance coverage provided by the cars. Nationwide advertising campaigns for cars add millions to ad agencies and print and broadcast media. The maintenance and repair of cars became a major business. Among all profiting businesses, the conqueror was the petroleum industry which sold fuel for the ever-outspreading count of cars on the road.
The Innovation for Care in the Automotive Industry According to researchers and some extensive studies, the global reserves which were the sole raw material for the automotive industry will run out in 2030. This dependency upon the raw materials and certain precious metals is a major obstacle and presents highly strategic challenges for the supply management. Due to this shortages and supply challenges of the metals and rise in global demand for raw materials, it has created extraordinary price increases for the automotive industry. So, as this is the primary concern for the manufacturers they are consequently finding solutions to limit on the current dependence on earth metals. The check on the utilization of valuable resource, investing in recycling technologies and increasing the use of recycled material has been found to provide a promising outlook.
The Circular Economy fits ideal to protect and raise the natural capital by regulating the limited stocks and stabilizing inexhaustible resource flows. The process restores and regenerates by design and aims to keep products, components, and materials at their highest utility and value at all times. Firstly, the damaged parts destined for re-manufacturing, called as scraps, is collected by the commercial network and stored in the Scrap Warehouse. Then, as per requirement, the scrap is molded in new parts by the re-manufacturing machines. The Cores Collection Sorting Centre is responsible to check the quality and efficiency of the re-manufactured products. It goes through the same quality control test and carries the same guarantee as for the new parts. Reconditioning of the product is involves stretching it back to its original state and characteristics as far as possible. This process efficiently prolongs the life of the vehicle, retains value and saves upon energy, whilst reducing waste. Moreover, this activity involves a skilled workforce and demand jobs locally. In order to be economically interesting, re-manufacturing has to be performed within the market in which vehicles are used to avoid negotiating the price. This greener economy promotes green growth where nothing is wasted. The eco-friendly business helps in waste prevention and the re-use of raw materials, thereby benefitting the environment and reducing the greenhouse emissions.
The Waste to Wealth cycle serves as a huge advantage to the industry by providing profits on re-usable products. The refurbished products come as 30-50 % less expensive from the new parts, which are affordable and attractive for the nature lovers.
Importance of technology in Automotive Industry Being able to anticipate the shortages of resources with securing production and supply, technological solutions can provide a huge significance to it. On the verge of major change, in both its products and business structure, the industry is gradually reforming itself with the help of the latest technologies. The rise in strategic partnerships with external tech companies is involved with building the innovative features demanded by their customers. Customer expectations of vehicle quality, reliability, safety, and utility are at an all-time high. At the same time, environmental concerns including tailpipe emissions, carbon dioxide production and pollution and recycling are the critical elements of the manufacturer’ s agenda. These challenges help to accelerate innovations and integrate technology planning with business strategies.
Upon collaborating with the tech companies, an acute surge has been noticed on the demand of software and applications. Assistance in tracking vehicles for authorized people, displaying road maps and directions, booking cabs and cars via mobile apps, the design of the self-driving car, automated tractors for betterment in agriculture and invention in types of convertibles are the outcome of adit of technology. The automotive industry is driving more innovations and global technological advancements. As a result, today’ s automobile represents the most sophisticated technology owned by most consumers.
30 July 2017