Idtechex Discusses How Tech Giants Could Displace Automotive Oems

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The electrification of cars, driverless driving, and the transition to software-defined vehicles are causing the automotive sector to face unprecedented technical changes. Electric vehicles are getting more and more common, and battery-electric vehicles are predicted to develop significantly. Cars are becoming more and more like software-defined entities with over-the-air upgrades and subscription-based services, and autonomous functions are becoming standard. The question of whether tech and consumer electronics businesses could take on a bigger role—possibly even producing cars—in light of this transition arises.

Although historically the automotive industry's cycles of adaptation were slower, new advances suggest that this is changing. With its over-the-air upgrades, remote servicing, and direct internet sales, Tesla upended the industry. As tech-driven strategies gain traction, traditional dealership-centered methods are changing. Opportunities for tech businesses are growing, as seen by alliances like Sony's relationship with Honda, which leverages AI and entertainment capabilities, and Hyundai and Amazon's joint ...
... venture to sell cars on Amazon.com.

The dominance of combustion engines is waning as the automotive industry transitions to electrification. This presents an opportunity for tech businesses to expand from infotainment to vehicle manufacturing. Due to the disparities in the two industries' strengths, smaller businesses find it difficult to strike a balance between cutting-edge technology, high-volume manufacturing, and quality control.

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