Technology is considered one of the most critical factors in the automobile industry
Technology is considered one of the most critical factors in the automobile industry. Due to increasingly fierce competition, the continuous development of engineering technology has improved every project and affected the performance as well as position of each company in the automobile industry. It is also important to consider the maturity of technology, together with the capabilities and maturity of the manufacturing, which can affect the innovation process of any company. This is because it could affect the novelty of any business. The potential for innovation and improvement is increasing due to the assist of different technologies, primarily personal computers, and the internet.
In this ever-changing marketplace and globally competitive world, digital is revolutionising the manufacturing process across industries, so companies need to flexible and quickly adapt their corporate strategies or adopt new technologies to enable them to gain competitive advantage over other companies. Give the challenges facing Malaysian automakers, they must take digital solutions to elevate their production processes to the next level (Yee, 2016). For example, with the manufacturing data is centrally consolidated and updated in real-time, plant operators can better understand the factory’s process. By planning and improving efficiency, automotive manufacturers can reduce overall costs and ensure product quality.
Uber was introduced to Malaysia in January 2014 and Grab Car was introduced in May a few months later. These two applications have only changed the public transport industry in Malaysia in just over three years after its launch. They also created economic opportunities for many Malaysians. Automakers engage in research and development to attract owners to trade updates, safer, more reliable models with more creature comfort (Hughes, 2017). Buyers who wish to have vehicles for many years are willing to pay extra for cars that meet their expected needs. This is because passengers are satisfied with each trip and can provide feedback and flag the driver if there are problems. Simply put, commodification will become a threat to the survival of the automotive industry as we know it today.
Technology and innovation have become important determinants of the automotive industry’s market share. The more innovative a company is, the higher its market share. In view of this fact, all major players have invested heavily in research and development. Companies are investing in low-emission and environmentally-friendly vehicles such as Toyota, Hyundai and Ford (Pratap, 2016). Toyota even plans to launch driverless cars in the next few years. Not only that, but major technology players are trying to enter the industry. In recent years, technological innovation has remained the main basis for the differentiation of automakers. This is because the customer’s attention turns to vehicles with high fuel efficiency and high mileage. Sales of low-emission and fuel-efficient vehicles are always high. It shows that technology is one of the most important factors affecting the sales and profitability of the automotive industry.