How has technology changed the automobile industry?
Nowadays, the automobile industry is one of the main economic spearheads of the global market. And with advances in modern science and technology in recent years, the automobile industry has made significant changes, which are expected to be more explosive when combined with a series of advanced technologies such as: artificial intelligence, new materials, electric vehicles, and so on. As a result, let’s find out how technology has changed the automobile industry with RX Tradex through the article below.
1. An Overview of Technology’s Influence on the Global Automobile Industry.
With advancements in science and cutting-edge technology over recent years, the global automobile industry has experienced significant breakthroughs, leading to powerful waves of change worldwide. According to Economy magazine, Artificial Intelligence (AI) technology has had an immensely strong impact on the automobile manufacturing industry. Predictions indicate that AI in the automobile sector will experience an annual growth rate of nearly 40%, reaching $15.9 billion USD by 2027. [1] In this context, AI technology is gradually increasing its influence on car design, production, and usage.
Furthermore, the application of new material technologies, such as carbon fiber, nanomaterials, in car production is becoming a global trend. Compared to aluminum or steel frame structures, carbon fiber is lighter, more durable, and robust while ensuring superior performance. Due to the high cost of these new materials, they have not yet been incorporated into mass production. However, if these materials can be commercialized in the future, the global automobile manufacturing industry promises significant changes, impacting product quality, design, and cost.
Additionally, in recent years, the world has witnessed an explosion in electric vehicle (EV) manufacturing technology on a global scale. With environmental pollution worsening and many countries encouraging the use of electric cars, the market is witnessing fierce competition among major players in car production, exemplified by corporations like Toyota, Tesla, Honda, etc. According to data from Japanese research firm MarkLines Co, global EV sales in 2022 increased by 66.6% compared to 2021, reaching 7.26 million vehicles. Notably, the electric vehicle market share accounted for nearly 9.5% of the total global car sales in 2022. [2]
Furthermore, some notable technologies positively impacting the current automobile industry include:
- Automation.
- Internet of Things (IoT).
- Digitization.
- Additive Manufacturing – 3D printing.
- Blockchain.
2. Impact of Technology on the Automobile Industry in Vietnam.
In Vietnam, numerous businesses have gradually caught up with the global automobile technology trends. However, currently, most of the factories in the country focus on producing components and spare parts for automobiles. According to Tuoi Tre newspaper, Vietnam’s manufacturing capabilities for raw materials have been improved, partially meeting the material demands for domestic car component and equipment production. Previously, the majority of metal raw materials had to be imported from China, but in recent years, with the development of metal manufacturing technology, Vietnam is gradually taking control of its own raw materials for production, exemplified by materials like carbon steel, alloy steel, etc. [3]
According to Quan Doi Nhan Dan newspaper, by mastering modern technologies, THACO INDUSTRIES has progressively enhanced its competitive advantages and taken the lead in providing full-package OEM component supply chains for FDI businesses and exports in the automobile sector. Specifically, THACO INDUSTRIES has successfully exported OEM components like racing seat frames, springs, radiators, vehicle bodies, specialized vehicle tanks, crane trucks, etc., to key markets such as North America, Europe, Australia, South Korea, Japan, Malaysia, etc. [4] The continuous upgrading of advanced equipment and the application of various cutting-edge technologies into the production process have allowed THACO to reap the rewards after more than 20 years of relentless effort, contributing significantly to the development of the automobile industry in Vietnam.
Additionally, another leading automobile manufacturing corporation in Vietnam, VinFast, actively integrates the most advanced technologies into its new car models. This approach results in high-quality products at reasonable prices, bringing intelligent electric vehicles closer to the domestic market. [5] Some prominent technologies that VinFast has researched and developed in its automobile manufacturing activities over recent years include:
- Automated technology including charging station navigation and guidance.
- Advanced Driver Assistance Systems (ADAS).
- Collision warning.
- Lane departure warning.
- Blind spot detection.
- Nighttime observation support system.
- Parking assistance system.
- ….
3. Forecasting the Changes in the automobile Industry Due to New Technologies.
In the near future, amid economic and global political fluctuations leading to increased production costs, the automobile industry will witness significant advancements in supply chain manufacturing technologies. Simultaneously, the surge of AI and advancements in semiconductor technology is driving automobile manufacturers towards smart product lines. Specifically, self-driving vehicles and integrated features such as 5G, WiFi, IoT, will set new benchmarks for the automobile industry in the future.
Furthermore, a crucial trend in the industry is the development of sustainable green products aimed at environmental protection. According to Vietnamnet, over the past five years, China and Europe have led in the growth of electric vehicle sales. The world anticipates electric cars to constitute 10% of total new vehicle sales by 2025 and rise to 58% by 2040. [5] Additionally, eco-friendly fuel sources like lithium-ion batteries, hydrogen engines, will continue to receive strong investment in research in the coming years, aiming to achieve net-zero emissions by 2050 in many countries.
Lastly, the explosion of e-commerce directly impacts the entire supply chain in the automobile industry. According to CarPrice’s survey, over 90% of car buyers conduct online research before making a transaction, and more car sales activities are occurring over the internet. [7] Currently, Tesla leads this trend by deciding to close all of its physical stores in 2019 and shift to online car sales. Moreover, other car manufacturers are also ramping up the development of virtual showrooms, allowing customers to experience vehicles through smart devices like mobile phones and computers. In the coming years, e-commerce promises to become the main sales channel, gradually replacing physical locations globally.
4. In Conclusion.
Through the above article on “How has technology changed the automobile industry?”, RX Tradex hopes that businesses can understand the significance of technology in the automobile sector, and by extension, in various other industries. Additionally, this year, companies seeking to learn more about the latest manufacturing technologies can participate in the Vietnam Manufacturing Expo, organized by RX Tradex Vietnam. Furthermore, in 2023, RX Tradex will host premier regional exhibitions such as NEPCON Vietnam, METALEX Vietnam, and Waste and Recycling Vietnam, all scheduled for the upcoming time.
Note:
[1]: AI và tác động với ngành công nghiệp ô tô thế giới.
[2]: Xu hướng sử dụng xe điện tại Việt Nam và thế giới.
[3]: Ngành công nghiệp ô tô: Có thật Việt Nam chỉ mới sản xuất được ốc vít?.
[4]: THACO INDUSTRIES đẩy mạnh cung ứng linh kiện OEM cho các doanh nghiệp FDI và xuất khẩu.
[5]: VinFast tích cực đón đầu xu hướng công nghệ ô tô tương lai.
[6], [7]: 8 xu hướng phát triển ô tô toàn cầu năm 2023.
