Internet technology continues to change automotive industry

The increasing popularity of the Internet has drastically changed how the automotive industry operates, influencing everything from research, development, parts procurement and production to logistics, sales, after sales, repair and maintenance for automobiles. The Internet has played a crucial role in increasing production efficiency, improving logistics management, lowering costs and improving image for manufacturers.

Internet technology has proved useful for improving manufacturers’ production processes by pointing out potential problems well ahead of time, thereby allowing them to avoid having to issue potential recalls in the future and improving overall safety. At the same time, better monitoring of auto parts also helps to ensure the quality of automobiles. Such technologies are also useful for helping make the after sales market more transparent to help safeguard consumer interests.

The growing popularity of online sales is another trend that is worthy of note. The new O2O sales channels have started to encroach on the interests of traditional 4S dealers, which has put them under even more pressure.

For their part, companies and providers such as Apple, Google, Tencent and LeTV have all worked to increase their automotive-related operations by helping in the building of so-called ‘smart’ vehicles. SAIC and Alibaba have agreed to work together to build a smart car using Internet technology, as have BAIC and LeTV.

It is an exciting time to be monitoring the automotive industry, as Internet technology continues to make new advances and usher in new revolutions.