Digital transformation helps automotive companies improve competitiveness today while preparing for the new tomorrow. Volvo makes ethically sourced supply chains possible for electric vehicles. A detailed analysis suggests that dense areas with a large, established vehicle base are fertile ground for these new mobility services, and many cities and suburbs of Europe and North America fit this profile. The central bank of Indonesia decided to revise the down payment requirements for the purchase of a car in an attempt to boost credit growth .
To that end, the W3C Automotive working group is specifying a common data model for vehicle signals. In order to accelerate applications in vehicle environments, W3C launched the Automotive Working Group. The team completed an initial specification and is actively working on the next generation. The transportation ecosystem can benefit by building a Web of Data to unleash this potential. We will be present at Mondial de l’Auto, one of the largest automotive shows in the world, from 17 to 23 October, 2022.
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- This would mean that more than 30 percent of miles driven in new cars sold could be from shared mobility.
- After effectively ending the economic slowdown in 2016, the Indonesian economy is expected to show accelerating economic in the years ahead, something that boosts people’s purchasing power as well as consumer confidence.
- Consumers’ new habit of using tailored solutions for each purpose will lead to new segments of specialized vehicles designed for very specific needs.
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On the long-term, the government wants to turn Indonesia into an independent car manufacturing country that delivers completely built units of which all components are locally-manufactured in Indonesia. In terms of market size, Indonesia is the biggest car market in Southeast Asia and ASEAN. Indonesia accounts for about one-third of total annual car sales in ASEAN, followed by Thailand on second position. Indonesia not only has a large population but is also characterized by having a rapidly expanding middle class. Indonesia is the second-largest car manufacturing nation in Southeast Asia and the ASEAN region . However, due to robust growth in recent years, Indonesia is expected to somewhat limit the gap with Thailand’s dominant position over the next decade.
Research and insights
Individuals increasingly use multiple modes of transportation to complete their journey; goods and services are delivered to rather than fetched by consumers. As a result, the traditional business model of car sales will be complemented by a range of diverse, on-demand mobility solutions, especially in dense urban environments that proactively discourage private-car use. Most industry players and experts agree that the four trends will reinforce and accelerate one another, and that the automotive industry is ripe for disruption. Given the widespread understanding that game-changing disruption is already on the horizon, there is still no integrated perspective on how the industry will look in 10 to 15 years as a result of these trends.
Putting you in the driver’s seat
Other issues that limit car exports are concerns about safety standards and technology. When these LCGC cars were introduced they, generally, had a price tag of around IDR 100 million (approx. USD $7,500) hence being attractive for the country’s large and expanding middle class segment. By early the average price of the LCGC had risen to around IDR 140 million (approx. USD $10,500) per vehicle. With the implementation of the ASEAN Economic Community at the start of 2016, the Indonesian government also aims to make Indonesia the regional hub for the production of LCGCs.
The LCGC has become a very popular vehicle in Indonesia and now contributes nearly 25 percent to total domestic car sales. Considering the nation’s per capita GDP is still below USD $4,000, affordability is generally the most important factor for Indonesian consumers when buying a car, and this would explain consumers’ shift to the LCGC. For example, city car sales in Indonesia have plunged dramatically since the launch of the LCGC. Also the multipurpose vehicle , which – by far – is the most popular vehicle in Indonesia, felt the impact of the arrival of the LCGC. But the MPV’s dominant role in the nation’s automotive sector will persist.
As businesses compete for their fair share of the growing eMobility space, cooperation will be key to the creation of joint business models that have customers at their core. Automobiles are increasingly becoming sources of rich information for in-vehicle, cross-vehicle and cloud based applications that will improve performance, safety, efficiency, and entertainment. These applications may be designed for individual vehicles or address a wide range of them. They may also be part of a broader ecosystem that, for example, might incorporate other transportation modes, address general public safety issues and SmartCity interactions. Alexandre Audoin is Capgemini Group’s global leader for the automotive industry and head of automotive within Capgemini Engineering . ABB offers a comprehensive range of solutions to automotive manufacturers around the world.
Per 18 June 2015, those Indonesian consumers who use a loan from a financial institution to purchase a passenger car need to pay a minimum down payment of 25 percent . It is estimated that around 65 percent of all car purchases in Indonesia are made through a loan. This correlation between domestic car sales and economic growth is clearly visible in the case of Indonesia.
The increasing speed of innovation, especially in software-based systems, will require cars to be upgradable. As shared mobility solutions with shorter life cycles will become more common, consumers will be constantly aware of technological advances, which will further increase demand for upgradability in privately used cars as well. Create value and monetize new business models for autonomous, connected, electric, and shared vehicles with SAP. Our solutions can help you personalize in-car services, support subscription-based contracts, manage e-fleets, build and run EV charging networks, and more. In an era of unprecedented disruption, success depends on automakers’ ability to orchestrate multiple changes, from software-driven transformation to the shift to sustainable mobility and autonomous driving. For commercial vehicles and passenger cars alike, their ability to deal with the many difficult – and interconnected – disruptions they face depends on finding their place in a new global, digital ecosystem.