Digital Transformation in the Automotive Industry


There are a large number of industries that have undergone digital transformation in the past decade. These include numerous sectors such as retail, media, healthcare, finances and entertainment. The automotive industry has also been revolutionized due to digital transformation. It is expected that by 2020, investments in the automotive industry will increase to $82 billion due to increasing digitalization and technological advancements. Therefore, the automotive industry has learned that they need to provide a digitally enhanced experience for meeting consumer demands. Some of the changes that have been seen in the industry due to digital transformation include:

  • Digital sources in the car purchasing process

There was a time when car buying was a stressful process as dealing with a salesman meant that you had to deal with tense negotiations. Consumers only had newspaper ads as their source of information and often felt with pressured and ill-informed when purchasing a new vehicle. Now, consumers do their research online even before going to a dealership. Due to this trend, actual showrooms have now been transformed into digital market places that also boast virtual reality capabilities. This enables consumers to open doors, hear authentic side-effects and get a 360-degree peek in and out. In response to digitalization, companies have also started selling cars and their parts directly through websites.

  • Autonomous driving

Autonomous vehicles are expected to be the new normal and cars driving themselves is becoming a reality due to the collaboration between several advanced technologies. From sensors to cameras to GPS to algorithms and connectivity, autonomous vehicles will ultimately be able to handle all conditions and situations. It is expected that AV will be able to decrease automotive accidents and deaths and enable people freedom to travel, especially those who were unable to do so before. In fact, autonomous driving is expected to save 900,000 lives a year and also reduce spending by one trillion dollars.

  • Improved manufacturing

Just like other industries, digital transformation is being used to customize and personalize a consumer’s needs and experience. The same goes for the automotive industry. The supply chain has also been digitized and not only does it drive the cost down, but is also effective in engaging the customer because it collects and uses data in a better way. Instead of sticking to regional and national production, the industry has opted for a more decentralized approach for production and the supply chain.

This has enabled transparency in the supply chain, manufacturing, accelerating design and delivery. Social media and IoT are used for getting instant feedback, which is helpful for managing workflow and creating schedules. Robots are working along the assembly lines along with humans and advanced algorithms and AI are used for performing various tasks. The design testing phase also been tremendously improved with the help of test products manufactured by companies such as Cortek Test Solutions.

  • Predictive maintenance

Car maintenance no longer depends on guesswork as there are advanced self-diagnostic systems that instantly alert drivers when there is a problem. This allows users to service their vehicles proactively thereby reducing mechanical recalls and failures. Data is accumulated digitally by the fleet monitoring system, which provides companies with real-time performance analysis and wear data.

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