Automakers and suppliers can get a lot of value from working together

  • The Impact of Mobility-as-a-Service on the Automotive Industry
  • How Driverless Taxis are Changing the Ride Sharing Landscape
  • The Future of Digital Retail in the Automotive Sector
  • The Importance of Collaboration for Future Success in the Auto Industry

What could the future of mobility look like in just 10 years?

Electric vehicles (EV) are becoming increasingly popular, with gas stations being replaced by EV charging stations. MaaS is also on the rise, as it offers users a more affordable, sustainable, and efficient way to get around. Additionally, many cars are now self-driving and interconnected, able to communicate with each other regarding their location and next moves. Finally, many cars are connected and can send and receive data from users.

Understanding that our planet is changing, we must adapt to new regulations that willQuickly transpire. In Europe, there is a proposed legislation called “Fit for 55” which would reduce greenhouse gas emissions by 2030 by 55%. This proposal involves cars having an average emission reduction of  55% by 2030 and 100% 2035.

In the United States, President Biden set a goal that EVs make up at least 50% of all vehicles sold by 2030. Since he took office, automakers announced investments of more than US$36 billion in EV manufacturing and $48 billion in battery production in the U.S..

With the majority of global car buyers interested in electric vehicles, it’s no wonder that companies involved in selling cars need to be focused on innovation. After all, they want to maintain profitability and stay afloat.

Converting to Electric Power

Seamless integration between preexisting business systems and electric vehicle charging infrastructure is essential for a successful shift to large-scale electrification ofvehicles. This will also change the supplying role of parts suppliers, who will have to begin providing components needed for EVs rather than those used in internal combustion engines.

Technology can help automakers prepare for the electrification of vehicles by managing charge point infrastructure and interacting with different parts of the mobility value chain in the cloud. This would support collaborative, end-to-end business models and processes.

The SAP E-Mobility solution helped ChargeX, the first intelligent multi-socket charging provider for EVs, lower time spent on daily charge-point operations and improve customer satisfaction with an intuitive user interface and straightforward, automated processes.

The Evolution of the Smart Car

Cars are the next smartphones. With consumers increasingly expecting more from their vehicles, automobile manufacturers must find ways to continually enhance vehicle intelligence and connectivity.

Even as we move further into the 2020s, software continues to play a huge role in how drivers interact with their cars. Automation now controls functions like braking, climate control, cruise control, entertainment, and more. Routine software updates bring drivers continuous improvements, adding safety features, better performance.

Though still in its early stages, autonomous driving is continuously learning and will soon be a regularity on the roads. Much like inspiration for electric vehicles came from Regulations and consumer demand, so too does motivation for developing self-driving cars come from these outside forces.

Zoox, a company that manufactures autonomous vehicles, relies on SAP’s flexible and scalable manufacturing solutions to produce its Purpose-Built Vehicle fleet.

The Advantages of considering Mobility-as-a-Service

Technology-fueled smart cities will grow in number as we attempt to unravel the harm done by climate change, which will make car producers and related suppliers redesign their business models. Parts of a city typically taken for granted, like transportation, are going to be looked at again with urbanites being encouraged to use public or shared vehicles instead. In fact, industry analysts believe that the market for shared mobility services will reach $1.9 trillion sometime around 2030.

By packaging multiple transportation options together and offering them through a simple payment method, mobility-as-a-service platforms have the potential to solve many big city problems. These solutions could help reduce traffic, cut down on emissions from vehicles, and make it easier for people to get around. This new way of thinking about transportation presents an opportunity for carmakers and suppliers to innovate their products.

Zoox’s driverless taxicab, the robotaxi, is revolutionizing ridesharing. Passengers request a ride from this vehicle via their smartphones and Zoox robotaxis can go up to 75 miles per hour. The SAP Manufacturing Execution application provides the backbone for the robotaxi production process.

Welcome to the World of Digital Retail

The pandemic has forced a change in consumer behavior, which the automobile industry must now respond to with a digital-first, omnichannel sales strategy. More and more car buyers and sellers are going online to contactless dealerships. Even as we recover from COVID-19 global vehicle searches will reach an all time high, with customers preferring digital retail experiences for sales, trade-ins and service bookings.

SAP partner proaxia provides importers, dealerships, and service locations with easier access to digital retail options, optimizing end-to-end sales and service processes. With products for SAP S/4HANA, dealerships and service locations can keep driving sales, delivering services, and meeting customer expectations.

The Importance of Collaboration for Future Success

The automotive industry is facing some major challenges. Even though there’s a lot of competition in the automotive industry, automakers and suppliers can still get a lot of value from working together, especially when it comes to innovation. Catena-X is aiming to be the front-runner for the automotive industry by bringing all business partners into one network so that they can exchange data more easily and securely. This includes multi-tiered suppliers, original equipment manufacturers (OEMs), and recycling service providers.

With the transparency of data, participants can see every step of a product’s life cycle, from its conception to its ultimate disposal. By using information available in shared digital twins, decision making for end-of-life vehicles becomes much easier and efficient. This way, useful parts can be sent back for refurbishment or reuse and valuable raw materials can be recycled more effectively. With SAP Industry Network for Automotive hooked up to Catena-X, software and network services provided by SAP will become available not just to Catena but to the automotive industry as a whole.