September 2021

I n the words of Bob O’Donnell, Founder and President of TECHnalysis Research: "If ever there was an industry ripe for disruption – and in need of a tech overhaul – the automotive industry it is." This has been true for some time, but now the pandemic has revealed areas where updating and reframing the technology could revolutionise the whole industry, and indeed how necessary this might be if social distancing and other healthcare guidlines become long-term requirements. Although traditionally, the rate of development in the automotive industry has somewhat lagged behind others such as the medical and media sectors, recent years have seen the industry working hand- in-hand with major technology companies to produce some of the most sophisticated computers on wheels. In fact, the Reuters State of Innovation Report listed the automotive industry as the third fastest innovating sector, exceeded only by IT and telecommunications. The automotive industry has faced disruptive change on multiple fronts and now has the added challenges brought about by the Coronavirus pandemic. In 2020, year-to-date new car sales to private buyers in September had fallen 28.9% from the same period in 2019, according to figures from the SMMT. This will be a significant financial blow to an already challenged industry. More recently, new car sales in May were up 674.1% on the same month in 2020, but this was still 14.7% down on May 2019’s total and 13.2% down on the 10-year average. This is an improvement, but there is still a long way to go. Interestingly there has also been a significant shift towards battery and hybrid electric vehicles. With May’s figures also showing year-to-date sales for diesel falling by 18.6%, in the same period, battery electric vehicles have enjoyed a huge rise of 145.1.4%. This tells us that while overall sales are dropping in the current climate, consumers are still investing in new vehicle technology and supporting the move towards hybrid and fully electric transportation. So, how is the industry combatting these challenges and continuing to innovate in the new normal? Greater emphasis on electronic vehicles Environmental concerns are playing a greater role across all industries. The automotive sector is arguably leading on this front, with increased customer demand and government incentives for environmently-conscious consumers driving green innovation. The 2020s will witness rapid improvements in petrol and diesel fuel efficiency, and the development of ultra efficient hybrid vehicles. Increased research activity into electric vehicle technology and the falling price of batteries 14 AFTERMARKET SEPTEMBER 2021 BUSINESS www.aftermarketonline.net DRIVING INNOVATION IN THE AUTOMOTIVE INDUSTRY AFTER COVID-19 According to Noel and Günther, going forward, the automotive industry will be defined by three key features: electronics, connectivity, and autonomy will also result in a sharp increase in electric vehicle sales. In the next few years, we can expect to see electric vehicle ranges extended to 400 miles, providing the mileage capacity needed for the majority of single journeys. The development of hydrogen fuel cell technology may also provide an answer to current battery problems, although its likely that EV technology will innovate at a rate faster than the FCEV. These developments are in some part spurred by the 2030 government timeline for the banning of the sale of internal combustion engines, in addition to recent government economic stimulus packages for the auto industry which have focused on green tech. Bloomberg New Energy Finance estimates that electric vehicle sales will make up 57% of the market share by 2040, resulting in reduced carbon use in transport and improved air quality. This could have a transformative impact on commerical fleet vehicles. EV technology, for example, could result in nightime deliveries aided by silent running EVs becoming the norm, removing many vehicles from congested city streets during the day. Increasingly connected driving experience Artificial intelligence (AI) and machine learning (ML) will play an important role in future of the car industry. Predictive vehicle technology will continue to be built into BY Noel Sheppard, General Manager at Distec and Günther Dörgeloh, CEO at MRS Electronics