Electronics as Valuable as Horsepower for Auto Innovations
Electronic systems and digital services will drive as much value creation for the auto industry as horsepower , said an Audi executive at the recent Consumer Electronics Show in Shanghai.
“By 2020, 50% of value creation will be based on apps, software, electronic systems and digital services,” Luca de Meo, Audi’s sales chief, said in a prepared speech during CES Shanghai and reported here by Bloomberg.
The endless number of opportunities de Meo refers to are poised to change the auto industry, according to the Bloomberg story.
Audi, like many of its competitors, is investing in research and development projects that will influence how the shifting future of the automotive industry. In the post-recession economic recovery era and as the Internet of Things ushers in greater machine-to-machine connectivity, many industry observers expect the automotive industry to fundamentally change as companies go head-to-head with new competitors, form different kinds of alliances and battle for global revenue.
One way auto companies are already adjusting to this shift is by honing their offerings with country and region-specific solutions.
Audi, like its competitors, has been doing that for a few years now. On its website, the company states that since 2013, Audi engineers have been working in the company’s Beijing research and development Center to develop solutions especially for Asian markets.
“A precise knowledge of local conditions is a key factor in making our technical innovations a success in our most important international market,” said Prof. Dr. Ulrich Hackenberg, board member for development, referring specifically to the large Chinese market potential. “Our engineers in China are working on such aspects as chassis tuning, assistance systems and user interfaces as well as localization of high-voltage battery components.” Audi also said it is developing Asia-specific infotainment and connectivity features in Beijing.
At the Shanghai CES show, Audi showed off its connected car of the future, with infotainmentservices, new control and display concepts and innovative new light features.