Automotive Industry and Innovation


Electric car

Automotive industry and innovation: a combination that works!

The year starts with good news for the automotive industry! According to ANFAVEA (Association of Motor Vehicle Manufacturers), last year represented the third consecutive year of recovery in sales and production volume. There were 2.57 million vehicles licensed in the year, an increase of 8.6%.

In December alone, the number reached 262.6 thousand, a historic record! Annual production registered an increase of 2.3% in comparison with last year, driven mainly by the domestic market. For this year, the projections remain optimistic: the entity estimates an increase of 9.4% in vehicle licensing and 7.3% in production.

Considering that the world economy is taking the first steps towards its recovery and facing unfavorable external factors, such as the economic crisis inflicted by the pandemic, the performance of the automotive industry should be celebrated.

One of the great merits of this sector is its capacity for innovation to accompany technological development and the behavior of its customers. It is a fact that consumption habits have changed over the decades, and much more significantly in recent years. With a lot of information and comparison tools at their disposal, people are more demanding and are looking for more than just a product, a shopping experience.

Another factor that could offer itself as an obstacle, actually turned into an opportunity: the worldwide trend to replace fossil fuels with renewable energy sources, since many manufacturers have been dedicated to the development of electric cars.

The automotive industry faces these challenges by betting on innovation. A survey carried out by KPMG in partnership with the Autodata agency, released in the middle of last year, revealed that the automakers’ priority is to establish Industry 4.0 standards – the theme was cited by 42% of the 256 executives interviewed. Even in the face of the crisis from 2014 to 2016, the sector decided not to freeze investments.

Among several examples at the time the research was published, automakers such as FCA Fiat Chrysler and Volkswagen invested R $ 7 billion in the construction and modernization of their factories in recent years; General Motors, R $ 4.5 billion, and Toyota, R $ 1.6 billion.

It is logical to deduce that resources of this amount – and the projection for new investment plans in the coming years – affects the entire supply chain in the sector. This opens an excellent window of opportunities for suppliers of machinery and equipment who, not by chance, have been making their own investments to develop solutions aimed at Industry 4.0.

In this sense, the automotive industry is very well served. Manufacturers and distributors of major brands in not so developed countries are now on an equal footing with competitors from more developed countries.

As is a tradition at the automotive business events, entrepreneurs in this sector can be sure that they will find the latest in innovation to expand their factories, modernize their processes and continue to grow.

Recent Posts

Innovation Technologies

Latest News

Nissan design boss reimagines Silvia for the electric era

Nissan European design boss Matthew Weaver has reimagined the first-generation Nissan Silvia as a modern electric car. Unveiled at the 1964 Tokyo motor show, the original CSP311 Silvia launched a… [...]

2021 Hennessey Venom 775 F-150 ready to terrorize the TRX

While Ford continues to develop a V-8-powered F-150 Raptor R to challenge the Ram 1500 TRX in the performance pickup wars, Hennessey Performance Engineering has decided to step into the… [...]

Bentley Continental GT Speed, Aston Martin DBX S, Rivian R1T deliveries: Today's Car News

Bentley's latest Continental GT has spawned its Speed variant and we've just tested the car. The big bruiser now packs 650 hp, and we can think of few better cars… [...]

GTO Engineering Ferrari 250 GT SWB California Spyder revival remasters an icon

The U.K.'s GTO Engineering has added a new offering to its growing portfolio of replica Ferraris, which the company refers to as its Revival series. The latest to join the… [...]

2023 BMW 3-Series spy shots: Mid-cycle update on the way

BMW has been spotted testing a prototype for an updated 3-Series. The updates constitute a mid-cycle refresh for the current 3-Series which first arrived on the scene in 2018 as… [...]