How The Subscription Business Model Could Change The Automotive Industry

Alexander Pershikov, the transportation evangelist, founder of, serial entrepreneur and a metaverse visionary.

The sharing industry has introduced consumers to the subscription business model. Generations Y, Z and Meta already live in a world of subscriptions. They subscribe to music platforms and use streaming services and professional software, making monthly payments as a hygiene standard. Thus some do not value ownership the same way as many people from older generations do. Today, subscription algorithms are becoming a part of our daily life, changing the usual approach not only to the consumption of goods and services but to the provision of them as well.

Some experts say we are witnessing the extreme popularity of the subscription business due to millennials. This generation often stimulates the growth and development of e-commerce, which today has led us to the boost of subscription services and goods. Apple Music or Netflix subscriptions have already become a must-have. As the CEO of a car rental company, I’ve noticed car rental, a.k.a. car subscription services, seem like something mystical for many customers around the world. Today many car subscriptions are based in the U.S., such as Borrow and Hertz. Global brands such as Porsche, Hyundai and others also provide subscription products as an important strategic incentive.

Let’s analyze the pros and cons of car subscription services. A subscription can be a good solution for those who can’t afford to buy a car or don’t want to pay a big sum for it in the beginning but need it on an ongoing basis right here and right now.

New Car Subscription

Here are the main pros of a subscription service for new cars.

• Minimal commitment: The subscription model allows clients to rent a car for a long time, for instance, for a month or a year or maybe a season, without all the commitments of owning a car.

• Maintenance and insurance are included: The client gets rid of all headaches and payments related to regular maintenance or insurance of the car; the owner typically takes on these responsibilities and costs.

• Short-term savings: Regular rental payments are often lower than a one-time payment for buying a new car.

• Flexibility: Clients can have a summer car in the summer and a winter car in the winter.

However, even the ideal new car subscription scheme has its cons.

• High costs in the future: Very long-term car subscriptions can make clients lose money that could have been invested in buying their own vehicles.

Used Car Subscription

Subscriptions to used cars are also getting more popular among drivers. (Disclosure: My company offers used car subscriptions.) This option can help to deal with rising prices and inflation. However, a used car doesn’t mean bad service or fewer advantages. The client subscribes to a vehicle that fits their monthly budget and offers the same flexibility as a new one. They can rent a two-year-old model at a lower price than a new car. Insurance and maintenance

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Aluminum Delivers Sustainability to the Automotive Industry

Alumobility, a world wide ecosystem of foremost aluminum and downstream technologies partners, will proceed its mission of educating the automotive business about the gains of applying aluminum in cars by collaborating in Automotive Circle’s “Sustainability in Automotive Output” meeting on November 29-30 in Undesirable Nauheim, Germany. 

Alumobility’s Taking care of Director, Dr. Thomas Rudlaff will share recent insights and study results though discussing “Techniques and roadmaps for the sustainable use of aluminum in the automotive business,” on Nov. 30 at 10:45 a.m. CET.

“I search forward to talking about with my colleagues how aluminum can minimize car bodyweight to know increased performance and cut down CO2 emissions though addressing highly developed technologies needs and extra sustainable manufacturing,” reported Rudlaff. “We can do this with out sacrificing basic safety, durability or efficiency, which is why aluminum is immediately turning out to be the material of preference for automotive brands.”

Battery Electrical Automobiles (BEVs) driving adoption of aluminum as suitable automotive substance

A single of the best elements driving automakers’ switch to aluminum is the swiftly rising market for battery electric automobiles (BEVs). They are the cars of the long term, a critical element of the effort to mitigate weather alter and arrive at sustainability targets.

Batteries are hefty and the most pricey ingredient of a BEV. Aluminum is light-weight with one particular-third the density of steel but the exact in-company energy, which implies automotive producers only will need to use 600 grams or much less of aluminum for each individual kilogram of steel.

Additionally, lightweight aluminum BEVs are a lot quicker to cost and have improved performance and most likely scaled-down battery packs, which indicates they push farther concerning charging stations with the similar total of vitality. Scaled-down batteries signify lessen prices for both equally automakers and shoppers.

Aluminum is infinitely recyclable

Aluminum is the most sustainable choice for automotive body sheet since it is infinitely recyclable with no a decline in its attributes, such as lightness, sturdiness, and formability. Recycling aluminum takes advantage of only about 5 per cent of the electricity to deliver primary steel and cuts down carbon emissions by as a great deal as 95 percent. Recycling aluminum scrap in a closed-loop procedure is an instant option for car companies to lessen their carbon emissions, whilst close-of-life recycling gives an chance for the long run.

Effectiveness, basic safety, and toughness are increased with aluminum.

Lightweighting with aluminum gives much better managing in the sort of more quickly acceleration, more responsive steering, faster braking, much less load on brakes and suspension, and the capability to tow and have additional.

Further more, aluminum has great corrosion resistance and is self-therapeutic, forming a protecting oxide barrier when cracked, dented, or deformed. In the occasion of a crash, aluminum absorbs additional strength than steel for every kilogram supplying it exceptional crush attributes.

“I search ahead to sharing extra of Alumobility’s case research and insights on the gains of working with aluminum in vehicle production at the upcoming Automotive Circle conference,” reported

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Producing a Put up-Pandemic Automotive Industry Gameplan

It is clear that linked, automatic, shared and electrified (Circumstance) pushed electronic transformation is upending the automotive industry. Linear, merchandise-centered business models created on structured knowledge are currently being changed by collaborative, facts-driven organization ecosystems with numerous facts styles and stakeholders.

The new frontier for value generation is no for a longer period just about item it is about offering a differentiated customer working experience.

The troubles experiencing the automotive field in this new frontier sort into five key areas:

  • Product and assistance innovation
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  • Enterprise collaboration
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  • Offer chain management
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  • Operational excellence
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  • Electronic transformation
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Whilst all these challenges are considerable, they also deliver prospects. Numerous of these can be transformational, these kinds of as potential new profits streams from “as a service” business styles (e.g., transportation as a service, application as a provider, software program-outlined product functions and upgrades). In addition, automakers and suppliers want to be agile and adaptable sufficient to get advantage of new propulsion technologies, and proceed manufacturing “traditional” choices this sort of as interior-combustion-motor autos and elements – although complying with escalating sustainability and regulatory demands.

Important to all this communicate of change and option is the essential function of production – specially, intelligent manufacturing (aka Business 4.) – in producing solutions shoppers will want to get (and acquire yet again) and are at the heart of a good purchaser experience. What ever one’s purpose in the automotive ecosystem, eventually a customer’s expertise with the conclude item (i.e., the motor vehicle) and its relevant expert services is the basis of accomplishment. For this reason, it behooves automakers and suppliers to optimize their production procedures for good quality, effectiveness, agility and pace. Good producing is the “secret sauce” in the recipe and the defining attribute of the manufacturing facility of the future.

The notion of wise (aka linked) producing emerged at the flip of the millennium, introducing IoT-enabled cyber-bodily techniques to share, assess and guideline intelligent steps for various manufacturing procedures. Linked manufacturing increases general machines usefulness and works by using details analytics to optimize the provide chain, logistics, demand forecasts, manufacturing planning and scheduling, good quality command and ability utilization.

This information-pushed electronic transformation provides the probable to redesign and enhance the full global automotive manufacturing footprint, positioning factories nearer to markets, minimizing logistics nightmares and escalating the visibility amongst ecosystem companions including makers, suppliers and clients. In addition, in a funds-intensive sector this sort of as automotive, sensible producing systems can have a sizeable favourable effect on return on invested money (ROIC) and profitability.

Even with their benefits, numerous brands are only just commencing to embrace the real potential of good factories, which involves:

Enhanced shopper experience: Buyers ever more are demanding custom-made solutions. Sensible factories offer the production agility, flexibility and efficiency to present personalised goods and providers, so expanding model loyalty, fulfillment and profitability.

Production near to current market: To decrease delays and transportation charges, suppliers are setting up lesser, smarter factories nearer to the customer. Redesigning

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Beijing’s zero-COVID plan chokes progress in domestic motor vehicle industry

SHANGHAI – With a massive selection of domestic metropolitan areas complying with the central government’s zero-COVID policy to overcome a new wave of virus outbreaks, China’s automobile marketplace tanked very last month soon after rebounding for 5 straight months. 

Until the govt abandons its draconian pandemic response, which is regarded for snap lockdowns, mass tests as effectively as rigid quarantine and vacation guidelines, the current market prospect will be grim. 

Industry bodies have nevertheless to launch their new-motor vehicle income tallies for Nov, but first figures present the market was geared in direction of a steep decrease in the thirty day period. 

For the initially 27 days of Nov., industrywide retail income of new cars which includes sedans, crossovers, SUVs and multi-objective automobiles slumped 14 % yr on yr to 1.23 million, the China Car Sellers Association mentioned on Wednesday. 

The quantity also represents a 15 percent fall from Oct., the trade group said.

The explanations powering the seemingly abrupt sector contraction are obvious. Dozens of Chinese metropolitan areas, implemented partial lockdowns in an endeavor to control spiking coronavirus instances. 

These towns include Guangzhou, Chongqing, Chengdu and Zhengzhou, each boasting a population of above 10 million and hosts plants of many domestic and foreign automakers.

The lockdowns have also dealt a hefty blow to car or truck income. 

According to a study the CADA completed this 7 days, due to the fact of COVID-linked management steps, 41 per cent of car or truck dealerships in China suspended procedure previous month. Most shut for more than two months, the trade group famous.

This 12 months, hard anti-pandemic govt measures have knocked the domestic car or truck market place off the regular progress observe for the second time. 

The market place tumbled in April and May immediately after Shanghai, China’s most significant metropolis and auto production heart, was subjected to a two-month citywide lockdown.

It subsequently rebounded from June to Oct after Shanghai came out of the lockdown and the Chinese govt rolled out a tax incentive for gasoline vehicles on June 1. 

Under the incentive application, invest in tax was halved to 5 p.c for new gasoline light-weight autos with motor sizes up to 2. liters and priced at $38,120 or beneath.

The current wave of coronavirus outbreaks in domestic areas has demonstrated indications of subsiding this week, health and fitness authorizes in China. 

Meantime, automakers and marketplace bodies are now lobbying the government to extend the tax incentive for gasoline automobiles and the existing subsidy software for complete electric powered motor vehicles and plug-in hybrids, both equally owing to be terminated at the stop of this month.

If their wishes are granted, the industry may not be in a position to regain a stable footing.

Provided the transmissibility the coronavirus is attaining by frequent mutation, an additional wave of outbreaks could possibly arise to disrupt car or truck generation and gross sales as lengthy as the federal government upholds its zero-COVID coverage. 

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How important are concept cars in today’s automotive industry?

02 October 2022


Concept cars have been an automotive industry staple for decades, but what role do they play in today’s automotive world?

From the bold and beautiful to the outrageous and downright weird, concept cars are designed to catch the eye and are, more often than not, bold, futuristic and aesthetically pleasing.

They will never see automotive production or a showroom, but concept cars have been an important element in carmakers’ strategies for decades, and manufacturers spend considerable amounts developing them.

In an environment of intense commercial competition and tight profit margins, the concept car is a way for carmakers to gauge public response towards new designs, as well as creating media buzz and favourable PR.

‘Concept cars are still important to manufacturers as they allow them to look at new designs and also, in many cases, new manufacturing processes,’ stated Andy Cutler, UK car editor – forecast values at Glass’s.

Source: Bertone

‘Manufacturers will also use concept cars to showcase future design paths and then they will judge the feedback from the public, allowing them to make more-informed decisions with regards to design changes. Much of this early design is now done with AI but when it comes to showcasing the future to the masses, there is nothing like having a good concept car at a show,’ added Cutler.

Volvo’s 1979 Tundra concept, designed by Bertone, never saw production with the Swedish brand, but did find favour with Citroën. The French manufacturer used the design concept as the basis of the popular, multi-million-selling Citroën BX.  

Some memorably audacious concepts have included the Peugeot Onyx, the Ferrari 512 S Modulo, and the Ford GT90, all of which never entered production. Despite this, many concept models possess elements and design features that make their way onto production models.

Talking to the BBC back in 2018, the then DS design director Thierry Metroz described the concept car as a ‘development accelerator.’ With the automotive industry moving away from standard internal combustion engine-powered vehicles and towards electric, hydrogen and autonomy, many manufacturers are embracing the spirit of the concept car to showcase future plans.

From concept to reality

Swedish electric-vehicle manufacturer Polestar has illustrated how a concept can capture the public’s imagination. The company’s Polestar 6 concept received a hugely positive response and effectively forced Polestar to commence a production run.

The Polestar 6 LA Concept has therefore been made available initially as a 500-unit production run, and the 155mph, $200,000 (€208,000) electric roadsters sold out within minutes. This is proof that concept cars can find their way on to the road, but customers will have to wait until 2026 to get behind the wheel of this particular model.

Whilst Polestar’s roadster might be an unrealistic prospect for most budgets and automotive aspirations, there

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Automotive Emissions Ceramics Market Size to Grow by USD 27.22 million due to High Demand From The Automotive Industry

NEW YORK, Sept. 6, 2022 /PRNewswire/ — The “Automotive Emissions Ceramics Market Forecast and Analysis 2022-2026″ report has been added to Technavio’s offering. With ISO 9001:2015 certification, Technavio is proudly partnering with more than 100 Fortune 500 companies for over 16 years. The potential growth difference for the automotive emissions ceramics market between 2021 and 2026 is USD 27.22 million, as per the latest market analysis report by Technavio. The report predicts the market to witness an accelerating growth momentum at a CAGR of 4.25%. Technavio categorizes the global automotive emission ceramics market as a part of the global auto parts and equipment market. Our report provides extensive information on the value chain analysis for the automotive emissions ceramics market, which vendors can leverage to gain a competitive advantage during the forecast period. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Automotive Emissions Ceramics Market Forecast 2022-2026

For insights on the scope and value chain analysis, Read a FREE Sample Report

Key Market Dynamics:

  • Market Driver: The high demand from the automotive industry is one of the key drivers likely to influence market growth positively during the forecast period. Ceramics are compounds made of metallic or non-metallic elements and are known for their capacity to withstand high temperatures. Automotive ceramics, particularly the advanced versions, exhibit excellent physical, thermal, and electrical properties. Automotive ceramics are used in functional components such as spark plugs, glow plugs, and fuel injection systems. During the fiscal year 2021, global SUV sales increased by 3.07 million units compared to 2020. This, in turn, will drive the global demand for automotive emission ceramic during the forecast period.

  • Market Challenge: One of the key challenges to the global industrial industry growth is the declining demand for diesel vehicles. The demand for diesel-powered passenger vehicles has declined over the last few years. The Volkswagen scandal in 2015 raised doubts about the use of diesel engines as a relatively more environment-friendly alternative. Other technological advances, such as the variable compression ratio in gasoline-powered vehicles, will reduce the efficiency of diesel engines, thereby decreasing the demand for automotive emissions ceramics such as DPF. Such factors may hamper the market growth in the forecast years.

To learn about additional key market dynamics, View FREE Sample Report right now!

Key Market Segment Highlights:

The automotive emissions ceramics market report is segmented by Type (Honeycomb and GPF and DPF) and Geography (APAC, Europe, North America, South America, and Middle East and Africa).

Regional Opportunities: 69% of the market’s growth will originate from APAC during the forecast period. China, Japan, and India are the key markets for automotive emissions ceramics in APAC. Market growth in this region will be faster than the growth of the market in North America, Europe, and MEA. The increase in the number of on-road vehicles and the rising government focus on reducing vehicular emissions are compelling

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