The automotive business has seen a surge in innovation and the creation of new products that make helping people easier to use and more affordable, thanks to technological advancements. Additionally, it aids firms in advancing towards their objectives. Most automakers have recently developed new products that are both ecologically friendly and achieve one of the main objectives in the various nations of the world.
The industry has grown at a CAGR of 15–17 percent over the last two decades. According to projections, the Indian automobile sector will surpass all others in terms of growth, capturing the interest of more and more businesses and financial centers.
One could also claim that technology has aided the industry’s expansion in a beneficial way.
Digitalization is the first concept that comes to mind when we discuss technology. How does digitization contribute to the industry’s expansion? Based on the last three years, there has been a significant increase in the size of the enormous market with clear societal benefits. This development may support continued industry expansion over the next ten years. The improvement of the industry’s quality, effectiveness, and scale effects is a result of the growth of digital technology. The manufacturer that can use digital technology and a thorough understanding of the market to develop new ideas that can spur corporate growth is the key to the success of the sector.
Social media and virtual experiences have given all industries a new platform for the expansion of their enterprises throughout the pandemic. These days, it’s possible to locate applications for garages that provide doorstep services, one-stop convenience, quality assurance, a relaxing experience, and cost efficiency. Following this, Indian auto repair shops are more eager to adopt digitalization in order to acquire technical help with improved quality and efficiency as well as information on maintenance or spare parts. The automobile market has a number of opportunities thanks to digitization. Indian garages are gradually lining up for online consumption habits as a result of the rapid rise of Indian retail sectors.
Recent technological advancements have made vehicles more durable, and the average age of cars is continuously rising. Consider the average age of the cars, which has climbed from 9.78 years to 11.33 years, an increase of over 16 percent. The industry has also claimed an increase in growth of 10% over the previous five years.
Some of the main driving forces behind this include an organized used car market, enhanced OE standards and vehicle construction quality, and increased emphasis and awareness of vehicle maintenance.
Longer lasting vehicles are a great boon for aftermarket auto parts manufacturers because older vehicles need more repairs and maintenance, which calls for more aftermarket parts. The growth is anticipated to level off before the end of the decade.
Autonomous vehicles, however, have been a significant area of focus for businesses looking to make them a reality when it comes to the future of the automobile industry. The fundamental problem for the automakers is that they must overcome significant, expensive technology obstacles in other fields like MPG or pollution criteria, lo-T enabled features, and new market expansion.
As a result, the automotive aftermarket is prepared for sustained expansion, supported by an expanding vehicle park, a favourable business climate, and potential across all regions, including rural ones. The automobile players will have a variety of growth chances in the future with the proper distribution strategy and optimised digitization process.