THE IMPACT OF DIGITAL TRANSFORMATION ON THE GLOBAL AUTOMOTIVE INDUSTRY
Abstract
The article is aimed at identifying features of the digital transformation in the automotive industry around world. It is shown that the automotive market is currently in a difficult market situation due to the emergent transition from internal combustion engines to electric motors, the appearance of new market participants and influential innovations, as well as significant changes in consumer behavior within the context of the sustainable development trend. The article identifies some of the new consumer trends, such as the increased awareness of the environment-related aspects of driving, as well as those related to health and physical activity, such as the competition between bicycles and cars in urban mobility; the emergence of carsharing, growing urbanization and traffic congestion, and pollution concerns all add to the complexity of the market conditions. Further, the article addresses the global experience of digital transformation in companies seeking to maintain their market positions. Optimization and the digital transformation of management and production processes shorten the time to market and lower costs for new vehicle development. Large factories with a high level of vertical integration no longer differentiate between market and IT solutions; connected services and innovative drive technologies are increasingly in demand as purchasing criteria. Modern motor vehicles are turning more and more into software-controlled IoT devices. The author proves that it is important for automotive companies to properly handle the necessary changes through a comprehensive digitalization strategy. The starting point for building such a strategy is an analysis of future market and customer expectations, as well as a brief assessment of the current strategies of individual manufacturers and new competitors. The article concludes that digital transformation plays an integral role in the current development of the global automotive industry, as it provides platforms for the development and application of new digital business models and the introduction of new technologies.
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