The Impact of Autonomous Vehicles on the Auto Industry

Vehicle autonomy marks a new phase of innovation in the automotive industry. Sensors, cameras, GPS tracking technology and artificial intelligence (AI) combine to form an autonomous car capable of operating without human assistance.

This technology could revolutionize the auto industry, while opening up opportunities for dealerships.

1. Increased Safety

Autonomous vehicles use various sensors to gain a clear picture of their environment. Radar, video cameras, and lidar (light detection and ranging) sensors help autonomous vehicles track lane markings, read road signs, spot other vehicles or pedestrians and identify obstacles along their paths.

These sensors allow autonomous vehicles to identify obstacles such as bridges, tunnels and snow-covered roads; calculate risks accordingly and select the quickest, safest route to their destinations.

Increased lane capacity can significantly decrease traffic jams and energy costs by improving driving efficiency, and reduce fuel consumption and greenhouse gas emissions with fewer drivers behind the wheel. It may also provide improved accessibility by enabling people with limited mobility to drive themselves independently.

2. Reduced Accidents

Autonomous vehicles could dramatically decrease accidents caused by human error on roads by eliminating drivers altogether and by not speeding, using cell phones while driving, breaking traffic regulations or drinking and driving as often.

Waymo boasts their self-driving vehicles have not been involved in any major accidents over 2 million miles of testing, which is impressive but human error often plays a part in collisions, making it impossible to ascertain how many would have occurred without autonomous technology.

Companies could help increase transparency by disclosing crash reports and data, so the public can better evaluate claims made about safety records of autonomous car technologies and trust of driverless car technology.

3. Increased Productivity

Autonomous vehicles offer potential solutions for traffic congestion and emissions reduction, including ride-hailing services and automated public transit systems.

Self-driving cars use advanced cameras and sensors to collect an enormous amount of data, which is instantly processed by onboard computers using tailored algorithms. Using this information, the car can detect lanes, street signs, traffic lights, other objects on the road as well as its exact location.

Data obtained through these sensors is utilized for various purposes, including detecting unsafe driver behavior and optimizing driving or road conditions. Furthermore, each car uses machine-to-machine communication technology to communicate with other vehicles within its fleet and share its own information with others in that fleet.

4. New Revenue Streams

Autonomous vehicles will open up new revenue streams by providing mobility services like ride-hailing and car sharing. Furthermore, autonomous vehicles allow companies to retrofit existing vehicles with autonomous capabilities that generate additional revenues through connectivity services or subscription-based software sales.

Automakers are exploring various revenue streams related to the CASE (connected, autonomous, shared and electric) revolution – such as telematics insurance services, battery sales and online merchandise sales.

OEMs are engaged in an arms race to break through with levels of autonomy, which could stimulate dealership business across the value chain. One prediction suggests AVs may shorten vehicle lifespans and cause more frequent service requirements as well as prompting car insurance premiums to increase, providing dealers with additional revenue streams.

5. New Jobs

Current jobs reliant upon motor vehicles will be negatively impacted by autonomous technologies; however, new opportunities related to “AV ecosystems,” including software development, data analysis and vehicle maintenance will emerge.

Autonomous vehicles are designed with multiple safety systems and redundancies to reduce human error-related road accidents, potentially leading to reduced unemployment levels.

Additionally, autonomous vehicles (AVs) allow commuters to use their time more effectively during travel and increase productivity. This could also improve logistics and supply chain management which in turn would lower business costs and boost economic output. Finally, ride-sharing services like Uber use AVs which could ultimately decrease car ownership while having significant ripple effects from fuel costs to insurance rates.

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