From the Grand Traverse Resort and Spa, in Acme, Michigan, Swamy Kotagiri, from Magna International, spoke at the CAR Management Briefing Seminar 2015, on its closing morning.
He speaks about how the auto industry has adjusted from point A to point B (utilitarian) period. Consumers purchase their cars now as a representation of their personality. It used to be about fuel efficiency and getting the most out of your vehicle during the fuel crisis.
In the 90’s the auto industry was driven by the safety and regulatory changes. Now the industry is driven by technology and the innovation industry. It remains to be seen on how the auto industry regulatory bodies will morph and change to address the future of the industry.
In the industry you can’t exist by yourself and remain isolated. You have to develop strategic partnerships in tech, telecommunication, services, entertainment and several others in order to stay relevant.
From the 1970’s, the weight of cars have increased and decreased but the change has caused faster and more efficient cars. The price point has not changed, as consumers are unwilling to pay more. The engine size has decreased but there has been an increase in power.
Swamy then summarizes what’s currently driving the industry:
- Globalization
- Mega cities with mobility concepts
- Demographic changes
- Consumer habits
- Active safety
- Autonomous driving
- End user experience
- Environmental effect
