Challenges and Opportunities Faced in Automotive Industry


There is no single industry in this world that doesn’t face problems or obstacles in its path to success. Once a wise man said that
” Where there are problems there are opportunities” keeping this thing in mind the automotive industry has been doing a lot of progress in its manufacturing sector as well as the R&D region. The EV tech is one of the most recent and innovative creations that the industry has given us, but there are also many challenges present in the automotive industry such as the rate of recall, the recycling issue, shortage of items, and so on.
Some of these challenges and opportunities are Been listed in this blog in a short and sweet explanatory manner.

1. Chip Shortage And Hike in their Price.

As the production of cars is increasing day by day one of the major issue faced by the automotive sector is the shortage of semiconductors and this particular thing has to lead to a slightly bigger problem that is the increase in the pricing of chips.
The Indian auto OEM has been getting requests from chip manufacturers to increase the respective prices of chips – this particular thing has been approved and said by 3 companies in particular to date and the number is likely to increase in the near future. The combined impact of the supply shortage and accompanied by the surge g demand has put pressure on prices. The hike may be up to 3-6% up to 2021. This problem caused not only the car sector but also the semiconductor industry is looking for other alternatives.

2. EV batteries and the economy.

The used or retired electric vehicle batteries of the old vehicles have the major problem that they are unable to store or produce the required energy as compared to the new one which is a fact. Due to this, the cost of maintenance and repair of the battery costs too high. So these batteries are sold and been recycled in a very innovative manner which stores energy.
“Relectric” An Australian technology developer Is building and selling units of repurposed expired or outdated Nissan Motor Co.Leaf batteries to create products capable of storing renewable power at the manufacturing facilities, Big farms, and also old mines. These are also called second-life battery systems harnessing the remaining life of the used EV batteries or packs.

3.) Hyundai’s Recall

The recall is nothing but the right of the customer of the vehicle to replace or repair any part of his/her vehicle (a condition that it should be original ) by the company or the local manufacturer/dealer of that company. A similar recall chain has hit the Hyundai company where it has recall 82,000 electric vehicles globally to replace their batteries after 15 reports of fires involving the vehicles have come forward. This is one of the most expensive recalls in history. This signals to us that how electric car defects could create
such high cost for the automakers.
Replacing an entire battery is a very hectic process that requires a similar amount of hard work and expense as replacing a complete engine of a traditional IC-powered car.

4.) Driverless Electric Buses.

Driverless Electric Buses is definitely a milestone of changing technology. This bus adapts the machine learning mechanism and learns all the things while operating and observing the process in detail. It also interacts with the traffic signal and works and drives accordingly. The stops and routes are programmed with the help of machine learning and this bus uses its own AI to learn and understand new concepts. It is majorly operating in a city named Malaga in Spain. It runs at 8 km ( Five miles) loop it does six times a day. It is also capable of using its intelligence and improving its decision based on data processed along the route.