Gaining Perspectives

A study conducted by Zebra Technologies Corporation offers insight into the views and priorities of the automotive industry, the expectations and challenges it faces, and the opportunities resulting from rapid digital transformation. One of its highlights is the finding that 60 percent of APAC consumers, including India respondents, will prefer hybrid EVs in the future.

Zebra Technologies Corporation, an innovator at the front line of business with solutions and partners that deliver a performance edge, has released the findings of its Automotive Ecosystem Vision Study that confirms that automotive manufacturers are under pressure to accommodate growing consumers’ preference for electric vehicles (EVs) in the near future. Automotive manufacturers must plan for a smooth transition to EVs, which have very different requirements from raw materials to final assembly. Technology-led priorities will, therefore, be focused on increasing automation, building in-house technologies, and expanding visibility across their respective production and supply chains.

Despite a fluctuating economy, automotive manufacturers are ready to invest in technology innovation, as seven in 10 (74% globally, 69% in APAC) expect to increase their tech spend and six in 10 (67% globally, 63% APAC) plan to increase their manufacturing infrastructure spend in 2023.

The survey was conducted from August to September 2022, with participation from 1,336 respondents globally, including industry decision-makers, fleet managers, and consumers. In APAC, 350 respondents were surveyed across India, Greater China, Japan, and South Korea.

APAC consumers to purchase EVs in the future

The survey reflects that in the near future, there will be a shift in preference, with more than half of consumers (53% globally, 60% in APAC, including India) indicating going for a hybrid electric vehicle (HEV). However, navigating this increasing demand for EVs comes with challenges, as 68 percent of global Automotive industry decision-makers (60% in APAC, including India) say they are under high pressure to produce next-generation (i.e., electric) vehicles, while 75 percent of them (71% in APAC, including India) are under high pressure to deliver products that are more eco-friendly, sustainable, and safer for the environment.

The study also highlights consumers across generations pushing automotive manufacturers’ acceleration of technology innovation, as eight in 10 say sustainability and eco-friendliness are key priorities in their vehicle purchase and lease decisions. Eighty-seven percent (87%) of millennials prioritize sustainability in their vehicles, followed closely by 78 percent of Gen Xers, and 76 percent of Baby Boomers. Within APAC, 85 percent of consumers were aligned with these key priorities, consisting of 92 percent of millennials, 83 percent of Gen Xers, and 72 percent of Baby Boomers who prioritize sustainability the highest.

Consumers are driving the growing emphasis on personalization—the ability to customize a vehicle to their liking. Nearly four in five consumers say personalization options factor into their decision to purchase a vehicle, and eight in 10 fleet managers share these same requirements for sustainability and personalization. APAC consumers resonate with this most strongly when compared with their global counterparts, with 86 percent prioritizing personalization options in their purchasing decisions, and 92 percent of fleet managers sharing the same requirements.

While nearly 80 percent of Automotive industry decision-makers globally (77 percent in APAC, including India) recognize consumers expect more sustainable and personalized vehicle options today, around seven in 10 concede it’s difficult to keep up with increasing customization demands. As a result, three in four automotive manufacturers globally say a top priority is to build strategic partnerships with tech companies for their next generation of production. This number is lower across APAC, at 72 percent and 64 percent, respectively.

“While it’s heartening that consumers are leaning towards a greener automotive future with a greater preference towards electric vehicles, this is a signal to automotive decision-makers to actively invest more in safer technologies and robust infrastructure to better serve their customers,” said Tan Aik Jin, Vertical Solutions Marketing Lead APAC, Zebra Technologies.

Trust and transparency in automotive manufacturing

Data and information transparency is highly important to consumers and fleet managers alike, and they are seeking more visibility into the automotive ecosystem. When considering a vehicle for purchase or lease, 81 percent of consumers globally (85% in APAC, including India) and 86 percent of fleet managers (92% in APAC, including India) indicate they want to understand the origin of materials and parts on their vehicle. Millennials lead the way in demanding more transparency in automotive manufacturing, as more than eight in 10 (both globally and in APAC, including India) say it is important to have access to manufacturer information along with knowing if source materials and parts are sustainable and understanding how the vehicle is manufactured from end-to-end.

Beyond gaining greater visibility into the automotive manufacturing process, once they have their vehicles, 88 percent of consumers (82% in APAC, including India) and 86 percent of fleet managers (88% in APAC, including India) want to understand how the data from their vehicles will be used by the automotive ecosystem.

After a vehicle purchase, 83 percent of consumers and 84 percent of fleet managers expect ownership and control of the data their vehicle generates. This sentiment is similarly shared within APAC, by 86 percent of consumers and 88 percent of fleet managers.

Automotive supply chain visibility

A majority of consumers (79% globally, 83% in APAC, including India) and fleet managers (81% globally, 84% in APAC, including India) want end-to-end visibility during the manufacturing process. However, only around three in 10 automotive industry decision-makers say they will prioritize connecting real-time data systems (30% in APAC, including India) to enable a holistic view of operations and increase visibility across production and throughout the supply chain over the next five years (32% in APAC, including India).

“To provide real-time visibility throughout the supply chain, digitizing operations via RFID and rugged handheld mobile computers can ensure that both regulations and sustainability expectations are met effectively and efficiently,” added Tan.

Slightly more than one-third of original equipment manufacturers (OEMs) globally and in APAC said autonomous mobile robots (AMRs), RFID, rugged handheld mobile computers and scanners as well as industrial machine vision will improve supply chain management.  Similarly, for suppliers, one-third of those surveyed cite mobile barcode label/thermal printers, wearable computers, and location technology as the technologies to do so.

“Manufacturers are innovating to meet changing customer demands, and they are increasing their investment in technologies to deliver more personalized and sustainable vehicles. Along with this, they also need to ramp up their end-to-end supply-chain visibility to build the next level of trust with their customers,” said Rajnish Gupta, Vice President and Head, India and Sub-Continent Business, Zebra Technologies. “We are ready to help automotive manufacturers enhance their operational capabilities through digitalization through varying solutions like the L10ax rugged tablet, RFD90 ultra-rugged UHF RFID sleds, MC9300 DPM mobile computer, and Workforce Connect, just to name a few.”

Overall, around seven in 10 automotive industry decision-makers (76% globally, 67% in APAC, including India) agree digital transformation is a strategic priority for their organization. In the next five years, they anticipate expanding their use of technology, with 47 percent (both globally and in APAC, including India) focused on additive manufacturing/3D printing and 45 percent globally (46% in APAC, including India) on supply chain planning solutions. 

Survey background and methodology

Zebra conducted the Automotive Ecosystem Vision Study among a global audience of 1,336 respondents including automotive industry decision-makers (OEMs and suppliers), fleet managers, and consumers. The study is aimed to gauge industry views and priorities, the expectations and challenges it faces and the opportunities resulting from rapid digital transformation. All the data was collected and tabulated by the third-party research firm Azure Knowledge Corporation.

The survey was conducted from August to September 2022, with participation from 1,336 respondents globally, including industry decision-makers, fleet managers, and consumers. In APAC, 350 respondents were surveyed across India, Greater China, Japan, and South Korea.

Overall, around seven in 10 automotive industry decision-makers agree digital transformation is a strategic priority for their organization. In the next five years, they anticipate expanding their use of technology, with 47% focused on additive manufacturing/3D printing and 45% globally on supply chain planning solutions.

Source: Zebra Technologies Corporation

Images Source: Magic Wand Media

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