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Digital transformation to affect entire automotive industry



The automotive industry is facing unprecedented disruption. Original equipment manufacturers (OEMs) and tier 1 suppliers continue to see the importance of software investment in their growth strategies.

Early adoption is crucial as it will strengthen their position in an expanding ecosystem of connected cars, internet of things (IoT), autonomous technologies, and the impact of smartphones on in-vehicle experience and intensifying regulatory and safety mandates. Selecting the most suitable incremental technologies to optimise valuable resources, however, will be most crucial.

Digital Transformation of the Automotive Industry, recent research from Frost & Sullivan’s Future of Mobility Growth Partnership Service programme, finds that spend on digitalisation will transform the component hardware-driven automotive industry into one focused on software and solutions. Investments into digital automotive are expected to reach $82.01 billion in 2020.

Five key pillars

The study explores business activities, process improvements, and the development of competencies and business models across five key pillars:

  • connected supply chain;
  • industrial IoT (IIoT) and Industry 4.0;
  • connected and autonomous cars;
  • digital retailing; and
  • mobility-as-a-service (MaaS).

“Digital transformation will affect the entire automotive value chain including design, production, distribution and retail; reshaping the traditional automotive business model. New models will consider data, connectivity and customer centricity, along with cybersecurity,” said Frost & Sullivan Mobility senior consultant, Sriram Venkatraman. “As a result, drivers of digital initiatives within the industry will change from CEOs, CIOs and IT departments; by 2020, chief digital officers will begin to steer both strategic and digital initiatives of OEMs across luxury and economy brands.”

OEMs and tier 1 suppliers will seek partnerships with technology vendors and specialists for cloud computing, cyber security, telematics, connectivity and 3D printing solutions. Robert Bosch, Harman International, Continental, Magneti Marelli and Denso are already focusing on digital initiatives. OEMs – like Ford, GM, Tesla, Volkswagen and Toyota that focus on connected cars, autonomous driving, and mobility – must now prepare to compete with technology and semiconductor manufacturers, as well as mobility companies.

Other upcoming market developments

Other upcoming market developments include:

  • Robust upstream and downstream technology investments from automotive companies will realise recurring revenues from new services; IT spend will increase from $37.95 billion in 2015 to reach $168.8 billion in 2025, exhibiting a compound annual growth rate of 16.1%.
  • An increased investment focus on electric vehicles, new mobility services, multi-modality, artificial intelligence, and autonomous vehicles.
  • Disruption of the automotive industry supply chain, as more than 1,700 new digital startups enter the market.
  • Enhanced security across both horizontal and vertical business layers, as businesses begin to integrate IoT and big data analytics more.
  • A country-specific, digital retailing strategy for new and used cars, in addition to aftermarket and servicing.

“By 2030, the digitalisation roadmap in the automotive industry will move from digital services to car-as-a-service (CaaS) to MaaS, making vehicles an element of a connected living solution,” noted Venkatraman.

“Automotive companies adopting custom digital initiatives will be able to successfully leverage their software investments, access new markets, and easily adopt best practices.”

Other topics recently covered under the Mobility Growth Partnership Service include: Cloud and the Car – Use Cases, Business Models and Impact Analysis; Automotive Industry IT Spending – Key Focus Areas, Trends and Future Outlook; Automotive Dealer Management System (DMS) Market—Growth Opportunities and Digital Transformation, Forecast to 2022; State of Automotive Cybersecurity: Key Trends, Solutions, OEM Activities and Vendor Profiles; Disruptive Satellite Communication in the Automotive Industry; and Strategic Analysis of the Automotive Keyless Access Systems Market.


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Egypt, Toyota Tsusho discuss manufacturing natural gas-powered microbuses



CAIRO – 13 October 2019: Egypt and Toyota Tsusho discussed on Sunday how the giant Japanese company can contribute to the government’s plans to manufacturing natural gas-powered microbuses.

During his meeting with President and CEO of Toyota Tsusho Mr. Ichiro Kashitani, Prime Minister Mostafa Madbouli emphasized Egypt’s keenness to best utilize its resources by reducing diesel exports’ expenses and transferring diesel-fueled vehicles to natural gas-powered ones or to bi-fuel vehicles that are capable of running on two fuels (natural gas and gasoline) through offering payment facilities.

Mabdouli further stressed that the transfer process needs to be implemented through manufacturing companies that working on Egypt’s soil, in order to enhance local manufacturing, and transfer expertise, according to a cabinet press statement about the meeting. He also ensured that the government is serious in its plans to implementing the transfer process through providing funding programs and incentives to encourage owners of old microbuses.

These ambitions go the lines with the government’s latest unveiled plan in August, aiming to turn 50,000 vehicles into gas-powered annually.

Mabdouli also stressed the government’s readiness to discuss the details of the implementation of the program and accelerate the process according to a specific schedule.

For their part, Toyota Tsusho delegation presented their proposal of “manufacturing high quality microbuses in a way that will meet the Egyptian government’s converting the fuel-powered vehicles.”

Also Read Switzerland’s Head of Economic Cooperation, Development at SECO to visit Cairo

In a previous interview with Business Today Egypt magazine, Toyota Tsusho Kashitani explained his company’s strategy about using diversified fuels, based on the global trend to electrification, while maintaining an environment-friendly technology.

“In order to realize the fuel transfer plan by government, natural gas field development would be necessary to be accelerated and we are ready to support it by expansion of the offshore rig project as referred above,” Kashitani added during the interview.

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Messe Frankfurt studies holding international textile exhibition in Egypt



Shirts- CC via Maxpixel/ Sony Ilce-7

CAIRO – 19 May 2019: Messe Frankfurt Exhibition GmbH is studying holding an international fair for textile products in Egypt for the first time, announced Egypt’s Ministry of Trade and Industry in a statement on Sunday.

“The exhibition will be an important platform for bringing together exporters and importers from around the world to exchange experiences and views in this field,” the statement read.

The exhibition comes in light of Egypt’s strategic plan to be a trade hub serving the African countries, the ministry said, noting that the country aims to be an international center for all international exhibitions.

Member of the Executive Board of Messe Frankfurt GmbH Uwe Behm said that the company has been cooperating with Egypt for 100 years, adding that the company aims to hold this big international exhibition due to Egypt’s distinguished and strategic geographic place in Africa and in the Arab World.

Egypt Today

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Durban Car Terminal handles over half a million fully built units



DURBAN – The Durban Car Terminal broke a South African (SA) record, handling over half a million fully built units (FBU) in the 2018/19 financial year.

Amanda Siyengo, the Transnet Port Terminals (TPT) General Manager for Bulk, Break Bulk and Car Operations said, “A combination of a shift in the operating model, improved planning, dedicated operational teams and collaboration with customers and shipping lines have seen the terminal exceed its annual average of 480 000 FBU”.

This has resulted in the terminal handling 510 936 FBU which comprises of passenger, commercial, static mafi cargo and high and heavy vehicles.

The terminal had undergone an operating model change which entailed taking over the outsourced driving service function so that it was handled internally. Siyengo added that this achievement had not been an easy task, commending terminal management on and improving efficiencies such as units handled per hour with and ship working hours

“Facilitating seamless logistics planning and operational execution for original equipment manufacturers plus collaboration with shipping lines, is very critical in eliminating bottlenecks and ensuring that automotive exports and imports are handled efficiently for the South African economy,” said Siyengo.

The Durban Car Terminal is also focusing on creating more storage capacity to meet the industry demand, driving a high performance culture and being innovative in solutions it provides. Introducing the automated service instruction entry (SIE) to over 100 customers, supply chain partners and various other stakeholders is an initiative that is work in progress however, improves the SARS clearance process from 72 to 24 hours.

There have also been significant investments in the SA automotive sector that supported higher production capacity which led to better than expected export volumes countrywide.

The Department of Trade and Industry’s Automotive Production and Development Plan incentivizing the industry for increasing local content from 38% to 60% ex-factory price, has also played a significant role in increased numbers after its introduction in 2013. SA’s motor industry currently builds about 600 000 vehicles per annum, which is 0.7 percent of the global consumption. The SA government would like to see this grow to about 1 percent in 2035 when the SA Automotive Masterplan expires.

SA, through TPT’s Durban Car Terminal is the single largest car terminal in Africa. They have previously created a web-based, general cargo operating system called GCOS which enhances security of break bulk cargo and automotive, offering simple user interface and greater data integrity compared to the old manual method.

GCOS is a commercial product that some of the West African terminals are already utilizing and one of these is the Port of Cotonou in Benin.


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