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The impact of rapid technological evolution on the automotive industry  

Christian Dale

Christian Dale

Product Marketing Manager at Anyline

Feb 22, 2023

The development and innovation of new technology continue to generate a great deal of excitement in the automotive industry. The digital age is advancing the industry quickly, as it is with many other industries. From consumers to OEMs, there has never been a time when so many advancements were happening at such a rapid rate. It’s an exciting time to be a part of this industry.





What’s Behind the Drive to Innovate?

There is little doubt that new developments have always helped the automotive industry expand and prosper. One of the main factors influencing the development of various technologies has long been the automotive industry.

A common focus of this innovation has been providing improvements to driver safety. The advancement of technology like assistive driving features is one of the most important and fastest-growing sectors of the industry. According to research, dash systems have helped to create a 50% reduction in the number of passenger vehicle crashes since their implementation and a 40% reduction in rear-end collisions.

Another factor driving the interview is the focus on convenience. Whether it is promoting over-the-air updates to car computer systems or technology that enables consumers, technicians, and dealerships to better manage vehicles, like with Anyline’s scanning tools it is all about improving performance but also improving convenience.


The Growth of Engagement

Like so many other industries, the car industry is seeing significant growth and demand for ways for consumers to engage with brands. That applies to the dealerships as well. Brad Rosen, who is the COO of NODAR, shared in a recent interview, “I think dealerships, in general, have lacked that customer engagement side. Here’s the car, and here are the keys. That’s kind of the end of the services that you’re providing.”

He continues, “There’s an opportunity for dealers to get more out of their customers and help explain that future value proposition by building a stronger relationship through engagement opportunities.” In the modern world, maintaining relationships with customers is essential for the development of this industry.

One of the best ways to do that is to utilize data and connectivity. In order to facilitate repairs or maintenance earlier, protect the investment, and keep drivers safe on the road, there are key pieces of hardware that can continuously stream information about the car to the dealership or technician. This creates a regular touchpoint with the customer and is likely to build a longer-term relationship between the vehicle owner and the dealership.


A Process That Takes Time

New technology is incredibly exciting for many reasons, but manufacturers of that modern technology, dealerships, and manufacturers need to realize it takes time to get that technology from the idea phase into the market. Even though the automotive industry is highly intuitive and innovative, it still takes time to launch a product and get it into the hands of the market.

Operators and businesses must realize that timing is critical. It is essential to take action now, as it can make a big difference when they can actually see their technology arrive in front of their customers. There are numerous hiccups in the market right now that can slow things down, and when that happens, it creates a gap in relationships and enables an opportunity for competitors to slip in. Acting quickly to implement technology after development is essential.


A Fast-Changing Automotive World

The automotive industry is always going to focus on innovation. There will be changes and updates, but that does not mean the process will be simple. Rosen shares, “I think that… technology is going to happen, but that relationships need to be there in order for it to happen smoothly and efficiently.”

The automotive industry is undoubtedly constantly advancing in terms of innovation and technological sophistication. Yet, even as technology grows, without a strong connection point between the manufacturer or dealership and the customer, there’s a loss of opportunity. Utilizing technology that makes it easier, more efficient, and more streamlined to communicate with customers is critical.