Automotive Industry Trends

NEW ANALYSIS: Electric vehicles are entering the mid-transition space starting to replace ICE vehicles in more and more markets. The transition is already underway. Global EV numbers have grown from 1.2 million in 2015 to nearly 60 million today. History shows that shifts like this can happen faster than expected: in the early 20th-century US, horses and mules virtually vanished from roads in under 30 years. As with the rise of the car, today’s transition is shaped as much by policy and politics as by technology. ICE vehicles didn’t dominate through technical superiority alone—they were supported by massive public investment in roads, urban design, and highways funded by fuel taxes. EVs are well placed to move even faster. They directly replace ICE vehicles while being cleaner, cheaper, and quieter to operate. And past transitions suggest that like-for-like replacements—think black-and-white to colour TV—tend to spread far more quickly than entirely new products. Our new report by the Centre for Net Zero (Octopus Energy Group)'s excellent Andy Hackett, Izzy Woolgar, RMI's Yuki Numata and Laurens Speelman and me at Environmental Change Institute (ECI), University of Oxford describe how EVs are posed to enter a next phase in it's adoption curve. This is the phase of 'system integration', where integration of EVs into the broader energy and transport system (think vehicle to grid, flexible charging, widespread and equitable charging, battery recycling) becomes more and more important, alongside reducing costs, intense competition, increasing quality and efficiency, and increasing supporting technologies. This new phase represents new opportunities and new challenges both for policy makers and business which we unpack in this report. You can read the report here: https://lnkd.in/eRNdpMj6

When Style Disrupts Safety: A Lesson in Product Design Today, while driving behind the sleek Mahindra BE.6E, a futuristic and stylish EV, I experienced something unexpected. The car in front of me braked suddenly. I had maintained a safe distance, so I stopped comfortably. But something felt off. Why did the braking catch me off guard? Then I realized: The brake lights were too subtle. The taillights are designed as a thin rectangular LED strip, stunning to look at, no doubt. But the brake lights occupy only a tiny section on the top edge of that strip. Visually stylish, but functionally weak. In real traffic conditions, where immediacy and clarity are critical, this design doesn’t help other drivers react intuitively. This reminded me of a fundamental product design principle: Aesthetics must never come at the cost of usability. A good product delights not just by how it looks but by how well it works. Whether we’re designing: • A mobile app • A banking interface • Or a car’s tail lights …it’s our job as product managers and designers to make sure the experience is not just elegant, but intuitive, accessible, and safe. Lesson for us in Product Management: Design for the user’s reality, not just the brand’s imagination. Functionality and clarity should never be hidden behind a glossy UI, whether it’s a screen… or an LED strip on a car. #ProductManagement #UXDesign #Usability #AutomotiveDesign #DesignThinking #BuildWithEmpathy

Global sales of EVs and hybrid vehicles hit 1.2 million units in February 2025. That's a massive 50% jump compared to last year. But get this: China accounted for nearly 75% of those sales! I've posted before about the pace in China, and it just keeps accelerating. EV sales there are up 76% year-on-year. Brands like BYD, Xiaomi, Xpeng, and Zeekr are launching new models at lightning speed, moving from plug-in hybrids to fully electric in record time. In Europe, the race is still on. Volkswagen boosted BEV sales by 180%, BMW overtook Tesla, and Chinese-owned brands reportedly outsold Tesla in Europe for the first time. Meanwhile, Tesla's EU market share hit a five-year low. But what I still can't get over is the insane pace in China! I recently drove a Xiaomi EV in Shanghai that felt like a one-to-one copy of the Porsche Taycan for $40,000. Incredible materials, smooth drive, and great steering. Even my engineer, who was with me, was impressed. And this is just four years after Xiaomi said, "Let's make cars." Now, they're producing 100,000 a year. Also extremely interesting is that 20% of the car's cost is subsidised. That kind of scale-up is of course possible based on massive government backing. On the autonomous side, I've experienced Waymo in San Francisco and Hyundai's lidar-based system in Shanghai: fully self-driving, even in chaotic traffic. The future is already here. And I've become a real fan, especially when I need to work between meetings or get to the airport. Same as Vay for teledriven car sharing. There’s so much going on! Has Europe lost the race? No! Not yet. But we're under pressure. And we need to move faster. The future is 100% electric: that's crystal clear to me. Hybrids may be an important bridge, but the long-term path is electrification, enabled by renewables. So the real question is: Can Europe match China's speed, scale, and tech leadership? Or are we looking at a permanent power shift in the EV industry?  I'd love to hear your thoughts in the comments. #EV #ElectricVehicles #Mobility #Innovation #ChinaEV #EuropeEV #Automotive

Global electric car sales are set to grow strongly again this year, reaching about 17 million. With more than 1 in 5 cars sold worldwide in 2024 set to be electric, the rise of EVs is transforming the auto industry & the energy sector. Read more from the International Energy Agency (IEA) Energy Agency: https://iea.li/44isGtR Electric cars' growth this year builds on a record-breaking 2023, when sales soared by 35% to almost 14 million. Demand was largely concentrated in China, Europe & the US, but momentum is picking up in key emerging markets such as Viet Nam & Thailand. Explore IEA’s Global EV Outlook 2024: https://iea.li/3QdwEhJ Despite near-term challenges in some countries, new IEA analysis sees the global electric car market gearing up for the next phase of growth. Under today's policy settings, nearly 1 in 3 cars on China's roads by 2030 is set to be electric & almost 1 in 5 in the US & EU. One reason for EVs' bright prospects: Manufacturers have taken huge steps to deliver on government ambitions. This includes major investments in EV and battery production. As a result, global capacity to produce EVs and #batteries is on track to keep up with rising demand. Under today’s policy settings, the rapid uptake of #EVs – including cars, vans, trucks, buses and 2/3-wheelers – is set to avoid the need for more than 10 million barrels of oil a day in 2035. That's equivalent to all the oil demand from road transport in the United States today. It’s important to note that the pace of the EV transition will hinge on their cost. In China, more than 60% of electric cars sold in 2023 were already cheaper than conventional equivalents. Competition & innovation are expected to bring down prices in other major markets. The transition to #ElectricCars is changing the global auto industry, and growing competition is putting downward pressure on prices. Chinese companies accounted for over half of global sales in 2023. In conventional cars, China has a much smaller market share. Making EVs more affordable is vital – as is ensuring that the availability of public charging keeps pace with sales. Last year, public charging point installations were up 40% from 2022. To align with government pledges, charging networks must grow six-fold by 2035. Alongside today’s new report, IEA is releasing 2 detailed interactive tools allowing users to dig deeper into EV trends & policies around the globe. Take a look at the data ➡️ https://iea.li/3xHJzlo Explore the policies ➡️ https://iea.li/44fjbvp For more on the key findings from IEA’s new Global EV Outlook 2024, read the freely available report online ➡️ https://iea.li/3QdwEhJ   And join IEA Chief Energy Technology Officer Timur Gül & me for our LIVE launch event at 10:30 CEST ➡️ https://iea.li/3WaxcZn

The U.S. dropped a bombshell on the global auto industry: 💥 A 25% tariff on auto imports and components (Might Be Elon Musk’s Secret Weapon) Sounds like a trade war rerun? Maybe. But there’s one clear winner here: Tesla. Let’s break it down 1/ The U.S. wants to reduce dependence on foreign auto parts—especially from China. But here’s the twist: This also hits Indian auto component exporters. They send over $6.7 billion worth of parts to the U.S. annually. Margins will shrink. Profits will dip. 2/ Indian companies like: 🔧 Sona Comstar (43% revenue from U.S.) 🔧 Motherson Sumi (18% revenue from U.S.) Now face a dilemma: Pay the tariff, or shift production to the U.S. Both options = more costs. 3/ But here’s where it gets worse... 🇮🇳 Tata Motors—through its luxury subsidiary Jaguar Land Rover (JLR)—is directly in the line of fire. Why? Because JLR manufactures mostly in the UK and exports to the U.S. The 25% tariff makes those cars significantly more expensive. 4/ JLR gets nearly 22% of its global sales from the U.S. That’s ~88,000 cars in FY24. Now imagine adding 25% to the price tag. 💸 Consumers back off. 📉 Sales drop. 💥 Margins tank. Tata Motors stock already fell nearly 6% after the news. 5/ Meanwhile, Tesla sits pretty. ✔️ 100% U.S.-made vehicles ✔️ Deep local supply chains ✔️ No import headaches Legacy brands like JLR, BMW, and Mercedes are now fighting gravity. Tesla? Taking off. 6/ Sure, even Tesla might face higher costs on imported electronics or rare earths. But their vertical integration and domestic sourcing act like a cushion. While others scream, Musk gets a competitive edge—for free. 7/ What’s next? 📍 Indian suppliers may set up shop in North America 📍 Automakers like Tata may re-think their export-heavy strategy 📍 Tesla will likely double down on its local-first manufacturing Summary : 🇮🇳 Indian exporters = short-term pain 🇬🇧 JLR = stuck in a tariff trap 🇺🇸 Tesla = riding high Sometimes, protectionism hurts. Sometimes, it hands you the steering wheel. And this time, Elon Musk’s driving.

𝗧𝗵𝗲 𝘁𝗲𝗿𝗺 “𝗽𝗮𝗿𝗮𝗱𝗶𝗴𝗺 𝘀𝗵𝗶𝗳𝘁” 𝗶𝘀 𝗼𝗳𝘁𝗲𝗻 𝗼𝘃𝗲𝗿𝘂𝘀𝗲𝗱 𝘁𝗵𝗲𝘀𝗲 𝗱𝗮𝘆𝘀. 𝗕𝘂𝘁 𝗶𝘁’𝘀 𝘃𝗲𝗿𝘆 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝗯𝗹𝗲 𝘁𝗼 𝘄𝗵𝗮𝘁 𝗶𝘀 𝗵𝗮𝗽𝗽𝗲𝗻𝗶𝗻𝗴 𝗿𝗶𝗴𝗵𝘁 𝗻𝗼𝘄 𝗶𝗻 𝘁𝗵𝗲 𝗴𝗹𝗼𝗯𝗮𝗹 𝗮𝘂𝘁𝗼𝗺𝗼𝘁𝗶𝘃𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆! ⬇️ At IBM, we’ve surveyed 101 automotive OEM executives across the US, UK, Germany, and India and gathered insights into how AI is transforming their industry. And there is one overarching takeaway: 𝗔𝗜 𝗮𝗱𝗼𝗽𝘁𝗶𝗼𝗻 𝗶𝘀𝗻'𝘁 𝗷𝘂𝘀𝘁 𝗮 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝘀𝗵𝗶𝗳𝘁; 𝗶𝘁'𝘀 𝗮 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝘆 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗮𝘂𝘁𝗼𝗺𝗼𝘁𝗶𝘃𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆. Here’s why: 1. 𝗖𝗮𝗿𝘀 𝗮𝗿𝗲 𝗯𝗲𝗰𝗼𝗺𝗶𝗻𝗴 𝘀𝗼𝗳𝘁𝘄𝗮𝗿𝗲-𝗱𝗲𝗳𝗶𝗻𝗲𝗱: ➜ AI is at the heart of this shift. In just a few years, 79% of automakers expect to have software-defined vehicles (SDVs), making AI the essential motor for driving this change. 2. 𝗔𝗜 𝘄𝗶𝗹𝗹 𝗽𝗼𝘄𝗲𝗿 𝗻𝗲𝘄 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝘀𝘁𝗿𝗲𝗮𝗺𝘀: ➜ The future of automotive isn’t just about vehicles; it's about services. Automakers are set to generate 51% of revenue from digital and software services by 2035. From predictive maintenance to in-car experiences, AI is creating new business models. 3. 𝗔𝗜 𝘄𝗶𝗹𝗹 𝗳𝘂𝗲𝗹 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁: Automakers are rethinking their operating models, and AI is leading the charge. **65% of executives** already have a clear strategy for integrating AI into their long-term plans. This includes everything from **autonomous driving** to creating personalized in-car experiences. 4. 𝗔𝗜 𝗶𝘀 𝘁𝗵𝗲 𝗸𝗲𝘆 𝘁𝗼 𝗳𝗮𝘀𝘁𝗲𝗿 𝗮𝗻𝗱 𝘀𝗺𝗮𝗿𝘁𝗲𝗿 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀:  AI is improving everything, from customer insights to predictive maintenance, and it’s streamlining manufacturing and operations. By implementing AI, the industry expects a 40% boost in productivity within three years. 5. 𝗔𝗜 𝗶𝘀𝗻’𝘁 𝗷𝘂𝘀𝘁 𝗮 𝘁𝗿𝗲𝗻𝗱: ➜ In a world where the automotive landscape is changing rapidly, AI investments are no longer seen as optional. 79% of executives say AI is strongly supported by senior leadership and will drive measurable competitive advantage. 𝗧𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗶𝗻𝗴 𝗽𝗮𝗿𝘁: 𝗔𝗜 𝗶𝘀 𝗻𝗼 𝗹𝗼𝗻𝗴𝗲𝗿 𝗷𝘂𝘀𝘁 𝗮𝗯𝗼𝘂𝘁 𝗮𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗼𝗻. 𝗜𝘁'𝘀 𝗮𝗯𝗼𝘂𝘁 𝗰𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝗻𝗲𝘄 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗺𝗼𝗱𝗲𝗹𝘀 𝘁𝗵𝗮𝘁 𝗱𝗶𝗱𝗻’𝘁 𝗲𝘅𝗶𝘀𝘁 𝗯𝗲𝗳𝗼𝗿𝗲. 𝗙𝗼𝗿 𝗮𝘂𝘁𝗼𝗺𝗮𝗸𝗲𝗿𝘀, 𝘁𝗵𝗶𝘀 𝘀𝗵𝗶𝗳𝘁 𝗶𝘀 𝗮𝗻 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝘁𝗼 𝗻𝗼𝘁 𝗼𝗻𝗹𝘆 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗯𝘂𝘁 𝘁𝗼 𝗿𝗲𝗱𝗲𝗳𝗶𝗻𝗲 𝘁𝗵𝗲 𝗲𝗻𝘁𝗶𝗿𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆. You can download the study below or via this link: https://lnkd.in/gWCv6kJZ --- Next in the IBM Institute for Business Value industry series is “Oil & Gas in the AI Era,” followed by eight other industries, one each month until the end of the year.

Transformation thrives when people are empowered to make the most of technology. 🚀 My recent visit to the Bosch production facility for automotive and eBike drives in Miskolc, Hungary, showcased this perfectly. I was deeply impressed to see firsthand how their progress in digitalization and the implementation of the Bosch Manufacturing and Logistics Platform (BMLP) is reshaping their manufacturing operations. BMLP is a globally standardized, open IT platform that connects all stages of production and logistics. During an insightful plant tour, I observed a successful example of how the platform leads to significant improvements in efficiency, quality, and data transparency across the plant. What stood out most was seeing the passionate and enthusiastic team at Miskolc leverage this technology in action and achieving great results towards operational excellence. Here are three key areas where BMLP is contributing to the plant’s digital transformation success, powered by our NEXEED IAS: 1️⃣ Enhanced Efficiency & Reduced Downtime: The module Shopfloor Management enables a closed PDCA cycle in production by consequent integration of all relevant information in one system. This leads to quick reaction in case of deviations to minimize downtimes and safeguard the daily performance targets.   2️⃣ Improved Product Quality: Continuous monitoring throughout production stages helps the team identify issues early, ensuring top-tier quality while driving process improvements.   3️⃣ Change Management: Change management plays a crucial role in digital transformation within a plant. As seen in Miskolc, effectively managing change ensures that the workforce is engaged, and equipped to embrace new technologies, driving sustainable success. In Miskolc we have seen solutions using gamification that help to involve all associates, making the transition both engaging and effective.   I was also excited to see AI in action with a live demo of 8D Analysis using GenAI, cutting failure analysis time by half. By automating the root cause analysis process, engineers are now spending less time on administrative tasks and more on proactive problem-solving – a great example of how technology empowers people. Beyond the production lines, the most rewarding part of the visit was engaging with the team. Their passion for digitalization, commitment to upskilling, and their drive for innovation truly brought home the message: technology is only as strong as the people behind it. A special thank you to the entire Miskolc team for the inspiring discussions and warm welcome – along with Volker Schilling, Klaus Maeder, Joerg Klingler, Volker Schiek, Norbert Jung, Stephan Brand, Aemen Bouafif, and everyone who joined us on this great trip. I’m excited to see what’s next on this incredible digitalization journey!

Model a full Formula 1 car in SOLIDWORKS — and understand how aerodynamics really work. Start here 👉 https://lnkd.in/eZbDrbEn In this timelapse you’re not just seeing a Formula 1 car being modeled in SOLIDWORKS — you’re seeing aerodynamics being shaped using AirShaper. When people think about F1 aerodynamics, they often focus on wings. But in reality, the entire car plays a role: front wing, rear wing, sidepods, and most importantly… the floor. The floor is where we achieved the biggest performance gains. Using AirShaper CFD, together with expert guidance from Wouter Remmerie 🏁, we optimized the airflow under the car, specifically through the Venturi tunnels. In simple terms: a Venturi tunnel accelerates airflow underneath the car, lowering pressure and pulling the car toward the ground. The faster the air moves under the floor, the more downforce you generate — without relying solely on big wings. By carefully adjusting the floor geometry and airflow paths, we managed to increase downforce by up to 236%, while simultaneously reducing drag. That’s the power of combining SOLIDWORKS modeling + CFD simulation. Small geometric changes can lead to massive performance differences — something you only truly understand when you see the airflow, pressures, and forces interact in real time. And this isn’t just theory. In real motorsport, every circuit requires a different balance: - High-speed tracks → low drag, maximum efficiency - Technical circuits → higher downforce, more grip CFD allows engineers to explore those trade-offs before anything is built. Now, a Formula 1 car might feel far removed from everyday design work — although one of my students recently started as a Surface Design Engineer at the Cadillac Formula 1 Team. But the skills you develop here go far beyond F1. The same aerodynamic and surface-modeling principles apply to: - Sports cars and hypercars - Aircraft and drones - Yachts and hydrofoils - Consumer products where airflow, noise, or cooling matters - Basically any complex product where geometry affects performance That’s why my SOLIDWORKS courses are built around learning by modeling real products. You don’t just learn tools — you learn how design decisions influence real-world behavior. If you want to start upgrading your SOLIDWORKS modeling skills, you can access free F1 helmet modeling videos and get more info about my upcoming full SOLIDWORKS course launch which also covers design optimization using CFD right here 👉 https://lnkd.in/eZbDrbEn #SOLIDWORKS #CFD #Formula1 #Aerodynamics #SurfaceModeling #EngineeringDesign #ProductDesign #AirShaper #3DModeling #MotorsportEngineering #CAD #DesignEngineering #TimeLapse #EngineeringEducation #IndustrialDesign #CADDesign #MechanicalEngineering #SolidWorksTutorial #SolidWorksSurfaceModeling #LearnSolidWorks  #SolidWorksSkills #CareerGrowth #Tutorial #Design #Engineering #Innovation #SOLIDWORKSDesign #SOLIDWORKS2026 #3DDesign #CADDesigner #DassaultSystems

Door 4 in our 𝐚𝐝𝐯𝐞𝐧𝐭 𝐜𝐚𝐥𝐞𝐧𝐝𝐚𝐫 𝐨𝐟 𝐢𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 “brakes” new ground in mechanical deceleration and stopping power.   An electric vehicle brakes primarily through recuperation – i.e. by using the motor as a generator to recover power during deceleration. We are therefore rethinking the conventional concept of mechanical friction braking at the vehicle’s wheels.   The innovative and more sustainable 𝐢𝐧-𝐝𝐫𝐢𝐯𝐞 𝐛𝐫𝐚𝐤𝐞 currently under research has moved out of its “ancestral home” to take up residence in the electric drive unit at the front or rear. It occupies very little space and – according to our current findings – is subject to minimal wear, doesn’t rust and is virtually maintenance-free. As well as being extremely durable and reliable, it would also emit zero particulates into the atmosphere. Plus, braking noise and cleaning brake dust from wheels would become a thing of the past.   The in-drive brake is also extremely promising in terms of its performance. The braking effect is easy to control and doesn’t fade, even under heavy loads. The removal of brake units from the wheel area also lowers unsprung mass, which improves ride and handling characteristics. Not only that, with no requirement for brake cooling at the wheels, rims could be fully closed for optimised aerodynamics. A technological win-win that opens up new design freedoms!   Check out the video to see it in action.

Over the past ~3 years, there has been an explosion of EV cab companies emerge in India focused on: vehicle ownership, scheduled rides, quality service… Sharing the list of companies I track (city-wise): ⤵ (1) NCR: BluSmart, Lithium Urban, Evera Cabs, eee-Taxi, Uber Green (2) BLR: BluSmart, Shoffr (3) Mumbai: Everest Fleet (Uber Green), Cab-E Mobility (4) Hyderabad: Etric Mobility, Ohm E-Logistics (5) Kolkata: Snap-E Mobility (6) Pune: Cab-E Mobility and GeEI Cabs (7) Other cities - Coorg: Shoffr - Guwahati: Smarto Cabs 💡 Most of the above companies have common ground in: (a) Choice of primary fleet vehicle: Tata Motors EV (e.g. Tigor or Xpres-T) (b) Operating model: Scheduled trips, owned vehicles, driver on payroll etc (c) Primary route(s): Airport ↔ City center 🍃 There are clear tailwinds: (i) FAME III subsidy for EV manufacturers will continue (albeit at a lower ₹₹ allocation) per the Interim Budget (ii) Govt financing for green loans is available (via IREDA, PFC etc) (iii) Customer “dissatisfaction” with Uber & Ola encourages them to try different vendors / different models (e.g. scheduled vs on-demand) 🧠 The key with these fleets is: (a) How do you get to unit break even? (i.e. drive high utilization OR premium pricing OR both) (b) How do you scale from YY to YYY? (i.e. don’t have too many quality issues at x10 scale) (c) OEM risk? (i.e. will the preferred OEM continue to drop prices? And, will battery life pan out?) ➡ Over the next 10 years, we should see most ICE cab fleets get replaced with such EV cab fleets. Clear winners in OEM segment are visible: Tata Motors & MG Motors India.. Will be exciting to see who wins (on the fleet operator side) in this transition! #startups #india