Top 3 Challenges in the Automotive Industry

What do your peers think about Automotive industry?

Automotive professionals say their sector is facing issues mainly in meeting the changing standards and regulations concerning emissions and “going green”, but also fulfilling customer requirements and needs, and finally managing the business problems created by the global financial and political crises.

Automotive Top 3 Peer Challenges

number-1Green technology

It is key to provide customers with more environmentally friendly and innovative options.


Being more consumer-centric is a crucial point as consumers have a large variety of needs that are not being dealt with correctly in the industry at the moment.

number-3Global financial and political situation

Instability, lack of competition, and increased commodity price fluctuations have a large impact on the market.

Other Challenges ­

  • Maintaining brand integrity due to user generated content
  • Limited access to information regarding the industry
  • Measuring marketing impacts (ROI)
  • Data technology: product evolution and innovation
  • Changes in regulations

Research-­based trends and short-term forecast

Research shows that the challenges in the automotive industry are: reducing the time to market, enhancing flexibility, increasing efficiency, and environmental responsibility; creating environmentally friendly vehicles while maintaining customer satisfaction. In 2014 the CO2 emissions of a new car were 33.7% lower than 20 years ago, and in 2021 they will be almost 42% lower than in 2005 (ACEA , Siemens).

According to the report made by Frost & Sullivan for Fisita, the R&D expenditure in the global automotive industry is projected to increase with an annual growth rate of 6.7% in the next 4 years. Even though the demand for engineering is growing, engineer outsourcing is expected to drop by 2020 (Fisita).

In the United States, the forecasted sales of light vehicles will rise from 17.5 million in 2016 to 17.8 million in 2018, and the North American production will increase from 17.9 million to 18.7. The price of gasoline is going to go up slightly by 2025 (CAR).

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