Tomorrow’s automotive interior will be fundamentally different in shape and functionality, as end customers demand greater convenience, safety, and individualization. Automobiles are increasingly becoming sources of rich information for in-vehicle, cross-vehicle and cloud based applications that will improve performance, safety, efficiency, and entertainment. These applications may be designed for individual vehicles or address a wide range of them.
A successful transformation is enabled by IBM’s advanced automotive technology, experience and expertise. Digital transformation helps automotive companies improve competitiveness today while preparing for the new tomorrow. However, it is difficult for Indonesia to boost its car exports because the nation’s automotive industry is still at the Euro 2 level, while other nations are already at Euro 5 . Other issues that limit car exports are concerns about safety standards and technology. Although the relatively new low-cost green car has gained popularity in Indonesia , most Indonesians still prefer to buy the multipurpose vehicle . Indonesians love the MPV, known as “people carriers”, as these vehicles are bigger and taller than most other car types.
- Ford and Lio Ho Group have a joint venture called Ford Lio Ho, Ford owns 70% and Lio Ho Group owns 30%.
- SuppliersArm supply base is a source of excellence, quality standards and innovation for third-party products, goods and services.
- Strategic Transformation, Growth And Restructuring Suppliers need to constantly re-think and transform their business design in order to stay competitive.
- In order to accelerate applications in vehicle environments, W3C launched the Automotive Working Group.
- For example, city car sales in Indonesia have plunged dramatically since the launch of the LCGC.
Digital customer experience offers a competitive edge in a changing market. Cybersecurity for data generated by cars is playing an important role in purchase decisions. Renault uses blockchain for compliance management and collaboration in the supply chain.
Autonomous and connected vehicle
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Samsung’s ADAS solutions are designed to enhance safety and convenience as drivers navigate a wide range of road conditions. Featuring an open and scalable platform, Samsung DRVLINE with Exynos Auto A empowers car manufacturers to swiftly adapt ADAS solutions to meet market needs. The ISOCELL Auto image sensor with CornerPixel technology provides precise identification capabilities in the dark, while its 120 dB dynamic range ensures drivers can spot objects in high-contrast environments.
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Road freight digitalisation
The remaining driver of growth in global car sales is the overall positive macroeconomic development, including the rise of the global consumer middle class. With established markets slowing in growth, however, growth will continue to rely on emerging economies, particularly China, while product-mix differences will explain different development of revenues. The automotive industry began in the 1860s with hundreds of manufacturers that pioneered the horseless carriage. For many decades, the United States led the world in total automobile production. In 1929, before the Great Depression, the world had 32,028,500 automobiles in use, and the U.S. automobile industry produced over 90% of them.
This is a true missed opportunity in terms of export performance because about 80 percent of the world’s drivers use a sedan vehicle. The key reason why Indonesia has not developed a sedan industry is because the government’s tax system does not encourage the production and export of the sedan vehicle. The luxury goods tax on the sedan is 30 percent, while the tax on the MPV is set at 10 percent. This causes the high sedan price and in order to encourage demand for the sedan its price needs to become more competitive.
When gross domestic product growth boosts people’s purchasing power while consumer confidence is strong, people are willing to buy a car. However, in times of economic uncertainty (slowing economic expansion and reduced optimism – or pessimism – about future personal financial situations) people tend to postpone the purchase of relatively expensive items such as a car. While Indonesia has a well developed MPV and SUV manufacturing industry, the nation’s sedan industry is underdeveloped.