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.
- The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles.
- AIAG Supply Chain Management initiatives provide guidelines, training and educational opportunities to understand and manage the complexity and scope of supply chain issues.
- Indonesia is facing a severe energy issue, particularly in fuel oil for the transportation sector.
- Diverging markets will open opportunities for new players, which will initially focus on a few selected steps along the value chain and target only specific, economically attractive market segments—and then expand from there.
Major car manufacturing nations like the US, Germany, China, Japan and South Korea, as well as Volkswagen, Toyota, Peugeot, Honda, Nissan and Hyundai, did not pledge. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010. However, more recent reports confirmed the opposite; namely that the automotive industry was slowing down even in BRIC countries.
REBOOTING AUTOMOTIVE RESEARCH & DEVELOPMENT
The Automotive Working Group includes a parallel business group incubator to drive discussion on the most relevant applications and business models that incorporate the standards. Currently no single company has the scale, technological expertise or customer base to succeed alone. Cross-industry collaboration and building effective partnerships will be key to serving the net-zero consumers in eMobility. The online event for individuals and organizations developing and deploying solutions on Arm.
Automotive News Spotlight
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.