Employee Interview, “Trends in the Automotive Industry as Seen at AutoTech Detroit”

To explore the frontiers of the automotive industry, our consultants André and Marcel attended the “Auto Tech Detroit” event held in Detroit, USA, on June 7 and 8, 2023. The event brought together top companies and technologists from the automotive industry to share information on the latest automotive technologies and innovations. We conducted interviews with them about their insights and experiences at the event. What did they think of this rare glimpse into the evolution of the automotive industry?

How was your experience at AutoTech Detroit? What can you tell us about the size and content of the event?

– Andre Lindeque,
I’ve been recruiting in the Japanese market for 13 years now, so I’ve attended a number of trade shows in Japan, run by JSAE (Society of Automotive Engineers of Japan) and Automotive World (RX Japan). Although the event was smaller in size than the Automotive Technology Expo, it still attracted over 2,500 industry professionals who spent two full days networking with companies and had many opportunities to discuss and learn from the fireside chats and keynote speeches.

This year’s AutoTech Detroit event focused on software-defined, connectivity, and UX, and not only did I gain great insight into the trends happening in the US market and automotive industry, but I was also able to network and I got to meet some great people.

– Marcel Bliss (Bliss Marcel)
It was a very interesting business trip, not only for networking, but also because the trends in the industry are different from those in Japan. I hope I was able to broaden my horizons, gather new knowledge, and stay sharp on future trends. The main focus of Autotech this time was on ADAS, UX, and connected cars, with representatives from companies such as Stellantis, Continental, and T-Mobile, as well as small start-ups.

Because the event was not open to the public and was small in size, it was primarily a gathering of suppliers, OEMS, and other automotive industry professionals to hear what they had to say. In addition to the small exhibition, there were several on-stage discussions where speakers were able to exchange ideas and opinions. If you had an open question, you could actually contact the speaker during the event and exchange contact information to hear additional information and gain a better understanding. It was a rare opportunity to meet face-to-face at a large automotive event, and very worthwhile.

Did you notice any differences between the Japanese market and the U.S. automotive industry in terms of the latest trends and technologies?

– Andre Lindeque
One of the things that struck me at the event was the tremendous importance of connectivity: by 2030, 22% of vehicles globally will be electric and 20% will be Level 3+ compatible. This means that 98% of vehicles will have connectivity. This means that connectivity will become much more prevalent much faster than electric and autonomous vehicles, and OEMs need to understand that connectivity is a very important area for them to build new business models in the market.

Carriers do not want to be tied to a specific carrier in a particular vehicle and can provide a seamless experience for drivers by allowing them to use the phone company as their service provider in the vehicle.

Connectivity is a technology that brings together new players in the mobility market, such as suppliers, software companies, and telecommunications companies, and it will be more important than ever for OEMs to work with this ecosystem of suppliers and service providers. Partnerships will therefore become increasingly important.

Software Defined Vehicle is, of course, about everything in the vehicle, not just connectivity, but this trend will also change the way aftermarket services are delivered and the customer experience, including remote diagnostics, predictive maintenance, intelligent navigation, emergency roadside services, and cybersecurity. This trend will also change the way aftermarket services are delivered and the customer experience.

– Marcel Bliss (Bliss Marcel)
As Andre mentioned, connectivity is a huge trend and will become even more important in the future. Many OEMs in the U.S. no longer see themselves necessarily as automotive companies, but are redefining themselves as mobility and software companies.

This is clearly changing not only hiring needs and supplier relationships, but also the way they work with non-automotive companies: software engineers are in high demand to implement and execute OEMs’ connected car plans, OEMs are working closely with suppliers to advance their technology, and telecom and entertainment companies are already important partners for many U.S. OEMs. Telecommunications and entertainment companies are already key partners for many U.S. OEMs. This is likely why representatives from telecom giants AT&T, T-Mobile, and Verizon were the main speakers at the show.

How is the Japanese market different from the U.S. market? What can the Japanese market learn from the U.S. market?

– Andre L indeque
One thing we have learned is that Japanese OEMs are increasingly perceived as conservative and slow to bring new technologies to market. This means that Japanese OEMs may be losing the potential first-mover advantage to attract customers with newer technologies as more customers are willing to switch vehicles for better connectivity and services in the global market.

It will be interesting to see if this conservative approach, which has worked very well in the past for Japanese OEMs who have insisted on product quality and safety, can maintain and grow their market share in the industry.

Now that Tesla is taking share from Japanese OEMs in the U.S., Japanese OEMs should keep a close eye on the U.S. market and make a strategic decision on whether to change course and become bolder or stick to a more conservative approach. However, in a software-driven world, speed, agility, and first-mover advantage can make all the difference, and it would be dangerous not to build a more dynamic and aggressive approach to meet changing consumer demands in the automotive and mobility markets.

– Marcel Bliss (Bliss Marcel)
I feel that connected cars are still in the early stages of general interest, as are EVs, in which Japan is slowly but steadily increasing its interest. The Japanese automotive industry and its customers are perceived as rather traditional and less interested in new trends. It will be quite some time before public interest in connectivity reaches the same level as in the U.S.

We are also seeing Japanese OEMs and importers building infrastructure and some companies signing the necessary agreements with telecommunications providers to make their connected car strategies a reality. While it is clear that the majority of car drivers are interested in connected cars, overall, we feel that this trend is still in its infancy and that there is still a long way ahead unless Japanese car companies begin research and marketing campaigns to promote the service. Overall, we felt that a bolder strategy is needed in the Japanese market, not only with regard to connected cars, but also for the automotive industry as a whole, taking into account the recent situation and trends !

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The perspectives of two participants in the “Auto Tech Detroit” event provided a glimpse into the future of the automotive industry. Learning about the evolution of innovative technologies, sustainability initiatives, and new perspectives in a competitive industry, we were reminded that the automotive industry is constantly evolving. The way different companies are proposing one innovative approach after another and working together toward a sustainable future is contributing to the growth of the industry.

Auto Tech Detroit is an opportunity for those involved in the automotive industry to discover new possibilities and make connections.

We look forward to continuing to participate in these valuable events and contribute to the development of the industry.