In today's world, our cars are becoming a lot more like computers.
Automakers are working in tandem with technology companies to put more smart features and advanced technologies under the hood and on the dashboard of the modern vehicle. The self-driving vehicle invasion is only part of this diverse landscape of new tech tools for the automotive industry.
A collaboration between automotive firm Magna, and Rocketspace, a company offering curated technology to clients, illustrates one example of this kind of change. The new tech accelerator program works to improve electrical vehicle systems, driver-assistance features and information technology connectivity goals.
This announcement is by no means the only sign of such collaboration in a rapidly changing global industry.
"The past few years have seen a lot of big automakers partnering with technology firms with the aim of building vehicles with full autonomy,” Pallav Mittal of Aranca told Toronto Business Daily. Mittal has been associated with Aranca for about a year, where he has worked with buy-side analysts. He has an MBA in finance and B.Tech in electronics and telecommunication from Narsee Monjee Institute of Management Studies University in Mumbai, India.
“Some examples include Fiat Chrysler’s partnership with Google to develop self-driving minivans, Baidu’s collaboration with Bosch on driverless vehicle technology and Jaguar Land Rover’s partnership with Lyft," Mittal said. "We believe that the automobile manufacturers are increasingly focusing on collaboration with tech firms and the tech companies are gradually entering the automotive business to revolutionize personal mobility.”
Much of this progress will be evident sooner rather than later, Mittal said.
“Technological trends such as autonomous driving, electrification, vehicle connectivity … are expected to change the dynamics of the auto industry,” Mittal said. “The partnerships between automakers, component suppliers, technology giants and startups are supposed to change how people drive cars and enable cars to drive people. There is no doubt that the automobile industry will see much innovation by automakers, startups and technology companies shortly.”
Mittal said all of this will have bold economic ramifications that today’s car makers should be looking at intently.
“In the future, the lines between software and automobile companies will become increasingly blurred as user experience, driven by smart technology, will be the primary differentiator between businesses and models, and will determine the winners and losers in the upcoming gladiatorial contest in the new age automobile market,” Mittal said.