Technological development, which has been happening across all sectors, is resulting in massive changes, and this has also been the case in the automotive industry. There have been significant transformations in many facets of the auto industry, including wholesale remarketing. Also, new trends have emerged, like hailing services and the development of autonomous cars.
Furthermore, technology has had a significant impact on vehicle security and safety. EyeRide fleet cameras for an owner is one of the innovations that has changed the fleet management by allowing fleet owners and managers to keep track of their vehicles, monitor driver’s behavior, and receive unlimited vehicle data and GPS updates, among other benefits.
All these have reduced fleet operational costs due to optimal routing, responsible driving, reduced traffic crashes, and minimal vehicle breakdowns. In addition, revenues have registered an increase due to improved customer service, expansion, and efficiency in operations.
The need to adapt to change
The massive disruptions happening in the auto industry due to technological advancements were the main subject of discussion at the International Automotive Remarketers Alliance (IARA) 2018 Spring Roundtable, hosted in Las Vegas on March 6. Bob White, the president of the ARI, gave the opening keynote address based on the subject. He emphasized that the companies that are failing to adapt to the disruptions in the industry will find it hard to survive in a highly dynamic world. Aligning to the disruptive forces is vital for success in the industry, White added.
The recent major disruptions
Some notable disruption trends in the auto industry, as White observed, include:
Ride-hailing
This has been on the minds of those within or with close association to the automotive industry.
Push to make and launch alternative fuel automobiles
Due to competition or regulations, automotive manufacturers are being forced to find ways in which they can manufacture alternative fuel vehicles, which mostly concerns making hybrid and plug-in electric cars.
Autonomous vehicles
Vehicle manufacturers and other companies are investing so that they can present to the market a fully autonomous car. Considering the technological advancements in the vehicles that are being sold today, we are headed toward achieving self-driving vehicles.
More interest in online auctions
With the focus on the wholesale remarketing industry, there are more vehicle sales happening in online auctions as opposed to the recent past years, when most sales happened to people physically present at the auction.
Data analytics in remarketing
There is an increased use of data to analyze trends, which will significantly impact the industry. This data analysis helps guide the buying of inventories and the predictions of which vehicles to sell, both currently and in future.
Effects of disruption on other industries
According to White, disruptions in the automotive industry will have a severe impact on a significant number of businesses that have a close connection to the auto industry. Some examples include:
Auto-insurance industry– This sector will be hit hard by the reduction in claims in a world of autonomous cars and ride-hailing services, which means fewer people owning cars.
Legal industry– A reduction in traffic accidents due to the use of autonomous vehicles and ride-hailing services means fewer litigations.
Health care industry– This industry will register a reduction in business as a result of a decrease in automobile accidents, as most of their business comes from traffic accidents.
Private and public parking– As ride-hailing services start to become increasingly common and autonomous vehicles are adapted as the general mode of commuting, the demand for parking will reduce dramatically. A new business line may emerge in order to repurpose the parking spaces with a reduction in the numbers of users.
Conclusion: With technology—and the changes it brings—being inevitable in all industries, each business should choose to embrace it and align itself well with these changes, or it will have to close shop.