COVID-19 has hastened the shift towards connected and autonomous vehicles
Lockdowns and policy restrictions have strained transportation, global supply chains, and more. Smart, highly connected vehicles enable a new way to be mobile, offering increased autonomy. COVID-19 has made such connected and autonomous vehicles (CAV) much sought-after. The pandemic has impacted the automotive sector globally as follows:
AVs in geo-fenced areas: Use of contactless delivery will lead to faster adoption of AVs in constrained environments like airports, hospitals, etc.
Fall in oil prices: This will increase long distance journeys in personal vehicles and will impact electrification programs.
Shared mobility: Social distancing and hygiene concerns will see a drop in these services.
R&D spend: To balance budgets, firms will turn to ecosystem partnerships.
E-commerce and supply chain: AVs will be used for deliveries and can augment a connected supply chain.
Investments in CASE: Despite falling demand in automotive products, strategic projects like CAVs remain a priority.