Key developments in the motoring industry

The motoring industry continues to change dramatically. Several external factors such as digital transformation, environmental concerns and disruptive global events have shaped the industry tremendously in the last decade or so.

Change is constant and the industry is steering towards many important milestones on the road ahead. What have been the key developments recently and what does this mean for the future of motoring?

EVs and alternative fuels

In response to environmental pressures, the adoption of electric vehicles continues to gain speed. Many governments now have dates in place for the ban on sales of new petrol and diesel vehicles – it’s 2030 in the UK. 

Mass investment in supporting infrastructure and production capabilities is also a focus for many countries, aiming to bring down the cost of EV manufacturing to increase adoption across society.

In the background, alternative fuels are still being researched. Hydrogen and biofuels are the subject of intense research to find possible alternatives to complete electrification.

Autonomous vehicles

Technological developments are changing the way people drive. Autonomous vehicles are still being integrated gradually and the widespread application of driverless or self-driving vehicles is certainly on the horizon. 

Driverless public transport and logistics networks are set to revolutionise many industries, while advanced driving assistance systems (ADAS) are a popular feature of advanced EVs from manufacturers like Tesla. 

Mobility as a Service (MaaS)

The service industries have become dominant in developed countries, including the up-and-coming mobility as a service space. Car-sharing and digital transportation platforms have dramatically changed the way people move and travel.

We could see a future where people rarely own their own modes of transport, in favour of largely automated private and public transportation services.

Online marketplaces

With the rise of digital car dealerships and search engine marketing, the motoring industry competes online more than ever before. It’s not just car sales – repairs, maintenance and insurance are largely ordered through digital portals and marketplaces now.

Motoring businesses have almost been forced to invest heavily in their digital presence to remain competitive. This has been a positive for customers because more intense competition often lowers prices. Online reviews have also encouraged businesses to improve their user experience, protecting their ventures along with other precautionary measures such as smart repair insurance.

Supply chain inefficiencies

Relatively recent events including the pandemic, Russia’s invasion of Ukraine and Brexit have impacted supply chains globally. We’ve seen fuel prices skyrocket and semiconductor shortages that have limited EV production.Inefficiencies in the supply chain make the cost of motoring less affordable and effective solutions will need to be found to help the industry progress towards its long-term sustainable ambitions. Many organisations are already preparing and optimising EV production supply chains to get ready for the electric future.