What Are the Key Factors Contributing to OEM Growth in 2023?

1. The growth of OEMs in 2023 depends on multiple factors like current developments, changes, and patterns in the automotive industry which have a substantial impact on vehicle design, production, marketing, and the vehicle’s usage. These trends are in turn dependent upon a combination of variables such as technical improvement, altering

2. consumer tastes, regulatory changes, and global economic situations. As we all know the automobile sector is highly dynamic, and OEMs must monitor and comprehend these changes to stay competitive. This not just applies to OEMs but also, to suppliers and other stakeholders too. Electric vehicles, autonomous driving, connectivity, sustainability, mobility solutions, manufacturing innovations, and sales and distribution strategies are some of the prevalent areas of attention for automotive industry developments. Following these trends, such as the increased usage of electric vehicles in China and India, aids in greater penetration in the emerging market. The onset of electric vehicles, autonomous driving, connectivity, sustainability, mobility solutions, manufacturing innovations, and sales and distribution strategies are some of the areas of attention to monitor the development in the automotive sectors for OEMs. Following are the trends, like the increased usage of electric vehicles in China and India, which adds to the overall growth of the OEMs: 1. Increased production of digital vehicles: With an increased amount of digital vehicle production, giants like Google and Tesla have made proprietary technology to cater to such electric innovations. This implementation of such digital innovations has brought about an advancement for the better for OEMs across the globe. This has resulted in OEMs now competing to develop automotive software and digital systems for powering and governing electric vehicles. The technological advancement at this time addresses all the digital touchpoints for electric vehicles. 2. Increase in Online Sales: With the advancement of technology today, many OEMs offer their customers to purchase their vehicles online rather than visiting dealerships. Customers have the option to select the features they want, get options for finance, and also see the vehicle virtually with the help of technologies like AR/VR on a smartphone. To enhance the overall process,

3. OEMs are integrating AI technologies, including warranty management software to streamline the online purchasing experience and provide better aftermarket sales support. More and more stores are planning to provide these facilities in the coming time to increase sales and enhance overall growth. 3. Increased preference for pre-owned cars: In recent times, people have been more inclined towards purchasing pre-owned vehicles that are not more than 4-5 years old. These vehicles are the ones that have great features and also present the latest innovations in the market but are less expensive than new cars. The demand for such vehicles has soared to new heights due to the cost factor. AI integration is also becoming prevalent in the pre-owned car market, aiding in efficient inventory management, predictive maintenance, and warranty tracking. These also include the electric and hybrid models of vehicles which has led dealerships to offer certified pre-owned vehicles that are well maintained and look new, have less or no damage – in short look new at a cheaper cost. Pre-owned cars are an alternative that is appealing to customers because of their low financing choices. 4. Increase in cars that are connected: By connected vehicles we mean automobiles that can connected to the IoT wirelessly. This is the newest technology that OEMs are focussing on. This presents an overall connected vehicle and the customers can connect to the internet and have multiple sensors with dedicated functionality for the ease of operation of the vehicle. They also provide a secure, pleasant, and convenient multimedia experience with many on-demand features that allow users to connect and surf the web on the go. The services include diagnostics, vehicle health, Internet hotspots, in-built navigation support, and warnings about any crucial health issue. They utilize predictive intelligence and maintenance technology, which is expected to grow exponentially in the coming years. 5. Increase in Self-driving cars: We have all seen the advent of self-driving cars in many countries like North America, European countries, etc. They are becoming more common day by day and are expected to continue the same. Research suggests that these autonomous vehicles are not only safer but also minimize

4. vehicle downtime, broaden the scope of last-mile delivery, and have enhanced fuel efficiency by up to 10%. Many logistics and trucking companies have tested autonomous vehicles and very soon we may see these autonomous driving vehicles sharing the road with traditional cars. 6. Launching of EVs: Electronic vehicles are also an option in addition to the autonomous vehicles we talked about. They offer fast charging, have a longer range on a charge compared to traditional or fuel-powered vehicles, and also have zero-emission which is a big boon towards the environment – making them a sustainable option, as the experts suggest. Many countries have supported and are also investing in the development of fuel-cell technology. In addition to these countries, many major trucking and automobile companies have also invested in the development of such technology. 7. Increased Automotive: Tech collaboration: Because automotive technology requirements are continually changing, automakers and technology companies are creating alliances. This is especially important for electric, connected, and driverless vehicles, which require specialized software and cutting-edge technology to operate properly. Manufacturers are collaborating with technology businesses to design and produce the new operating systems required for the next generation of technologically advanced automobiles to avoid huge investments in their technology divisions. More collaborations are expected in 2023. Conclusion As we have already seen how the OEMs are looking to grow in 2023, there are new technologies that many countries as well as companies are investing in. The need of the hour is sustainability and scalability which have caught the attention of many automotive manufacturers. We are also looking at various collaborations in terms of automotive and technology that are bringing in a new outlook towards automobiles. The integration of AI, including warranty management software, aftermarket sales support, and other advanced technologies, is shaping the bright and innovative future for OEMs despite challenges such as economic slowdowns and supply chain disruptions. The advent of

5. online purchases of vehicles is altogether a new high for the automotive industry. In short, despite the economic slowdown and supply chain disruptions after COVID-19, we are looking at a very bright and innovative future for OEMs in the coming years. To know more in detail, visit: https://intellinetsystem.blogspot.com/2023/11/what-are-key-factors-contributing-to.html