INDUSTRY FOCUS AUTOMOTIVE
DRIVING THE
FUTURE
processes and embrace technology innovation. But when Chinese cars have a 20-month time to market and their European competitors take almost three times as long, something is still clearly very wrong. The enormous gulf in time to market between
A
traditional manufacturers and their up-and- coming competition is not just speeding up the innovation offered by new entrants. It is also allowing these companies to tap into the desires of a generation known for its taste for instant gratification – one that sees no reason why a new car should not arrive as frequently as a new phone, for example. However, as new manufacturers are turning cars and new models around at pace, the time to market for legacy automotive companies continues to extend. In addition, the automotive industry in the UK and Europe has long relied on brand value and loyalty to drive sales. However, it is quickly becoming outdated to suggest that the new Chinese entrants are immature, or that they lack customer appeal. For a digitally native generation, a car that greets the passengers, offers to take their picture and then post it on Instagram, is far more relatable than a brand relying on decade’s old movie tie-ins.
A CONTRASTING MARKET New market entrants, especially those from China, are able to benefit from the time savings of introducing products based on an entirely different design, build and deliver model. In contrast to traditional automotive companies struggling to retrofit new thinking onto a completely outdated operational model, they have been able to embed function-centric vehicle creation from day one. And while it may be true that new entrants have sacrificed some build quality and reliability in the push for 20-month time to market and lacked the robust after-market infrastructure, these competitors are maturing fast. New automotive companies have a completely
different notion of ‘compelling’ when it comes to cars and driving. While Lexus is emphasising its smooth luxury driving experience with a re- release of its iconic Champagne Glass advert, BYD is promoting its self-driving hyper car with its ability to ‘jump’ over road spikes and water. Clearly, based on these examples, there is a dichotomy between the gaming/social media style of the new generation and the calm, comfortable focus of the traditional automotive landscape. Just how much longer will old brand values, even traditional vehicle concepts, sustain a legacy
36 DESIGN SOLUTIONS APRIL 2025
ware of the threats posed by increasing competition from overseas, many car manufacturers have looked to streamline
Technology is a vital enabler of change, and the automotive industry needs to let go of traditional processes, culture and mindset, as Bodo Philipp, CEO, MHP Consulting UK, explains
automotive industry that is struggling for money, sales and customer loyalty?
THE PUSH FOR NEW DIGITAL PROCESSES The shift towards function-oriented development has pushed traditional vendors to invest heavily in dedicated software expertise and adapt tried and trusted supply chains to include sensors, radar, cameras and ECUs. Automotive vendors are also at the forefront of technology exploration, leveraging innovations in Artificial Intelligence (AI) and Virtual Reality (VR) to quickly reproduce sophisticated design models, tweaking and innovating in real time. Working with this technology allows designers and engineers to collaborate from different countries, using Meta Quest and Apple Vision Pro to experience together the materials, haptics, and even reflections of the concept car. Viewing insights in real-time and effectively conceptualising changes allows the collaborative team to understand the impact and make decisions quickly. Alongside this, AI is also enabling companies
to run multiple design concepts simultaneously, combining financial evaluations, regulations and design ideas through rapid iterations in real-time, shaving weeks, even months off the process. The use of this technology ultimately results in increased confidence in decision making, leading to faster, more efficient outcomes. Digitisation is without any doubt fundamental
to transforming the time to market for automotive manufacturers. And yet, time to market is getting longer due to the complexity and challenges associated with delivering function-oriented design within traditional automotive manufacturing processes.
DEFINING DIRECTION Automotive companies need to overcome their inability, to date, to change internal behaviour, culture and processes. The thinking is there but they have failed to activate and operationalise the new measures essential to achieving a new automotive paradigm. Here, an independent third party can be a
powerful enabler of change – analysing what is required but actively overseeing and implementing new processes and embedding new culture and mindset. End-to-end support leveraging Process, Methodology, Tools,
Organisation and Data (PMTOD), can transform the speed and success of change programmes. An organisation with expertise in automotive and a background in software development can both help organisations define their direction and, critically, also work together to implement and execute the shifts required to achieve that goal, by ensuring all employees are part of the process and have the support needed for long term success. In order to enact real change in the face of increasing competition, the new automotive model, culture and thinking must change significantly, and quickly. Companies will have to step away from the
traditional overspecification of every aspect of the process, from design through testing, and accept a less rigorous, but still safe, 100% to achieve a faster time to market. They will have to achieve a new way of producing vehicles that breaks down the familiar silos. They must do more than encourage collaboration between diverse teams by actively demanding that cooperation. In the process, they will have to negotiate employee and union grievances and safeguard funding – all whilst accelerating innovation, hitting new targets for Electric Vehicle (EV) sales and meeting customer expectations.
ADAPT AND EVOLVE The automotive market is under immense pressure in terms of product innovation and technology, new market dynamics, business models, and customer expectation. Legacy manufacturers are being pressured from all directions and, with finances failing and customer loyalty dropping, fundamental, systemic change is essential. Half-baked plans to build software expertise in one area or build in further efficiencies to the supply chain are not enough: the industry requires a radical, end-to- end overhaul of mindset, culture and process. The reality is that automotive manufacturers
must change now. It currently takes four to five years to bring a new car to market – and if that new vehicle does not match up to cheaper, more innovative alternatives, the consequences could be severe. Companies today therefore need to adapt
and evolve, and take actions that truly embrace end-to-end transformation.
MHP Consulting UK
www.mhp.com/en
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