MINI PROJECT REPORT

Submitted in partial fulfilment of

Master of Business Administration

Session-2022-2023

“Role of Emerging Technology in Automobile Industry”

Faculty Guide Submitted By:

[Mr. Brijendra Pratap Singh] Shivansh Sonwani

[Faculty-Master of Business Administration] 2201640700268

PRANVEER SINGH INSTITUTE OF TECHNOLOGY

Affiliated to Dr. A.P.J. AKTU

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 DECLARATION

I hereby declare that this submission is my own work. It contains no material previously

published or written by another person, nor has this material to a substantial extent been

accepted for the award of any other degree or diploma of the university or other institute of

higher learning.

Shivansh Sonwani

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 Date: …………………………

CERTIFICATE

This is to certify that Mr. /Ms.

Roll No. Student of MBA Second Semester (Session

2022- 2023) has successfully completed his/her Mini Project II (KMB252)

titled_____________________________________________________________

The work is original and carried out under the guidance & supervision of project

guide.

We wish him/her all the success and good luck for bright future.

HOD, MBA Project Guide

PSIT
 ACKNOWLEDGEMENT

Mini Project Report is the one of the important part of MBA program, which has helped me to gain a

lot of experience, which will be beneficial in my succeeding career. For this with an ineffable sense of

gratitude I take this opportunity to express my deep sense of indebtedness and gratitude to Dr. S. K.

Bhalla, Director - Pranveer Singh Institute of Technology and Dr. Harit Kumar, Head of Business

Administration Department, for their encouragement, support and guidance in carrying out the

project.

I am very much thankful to, my Project Guide Mr. Brijendra Pratap Singh – MBA Department for

his interest, constructive criticism, persistent encouragement and untiring guidance throughout the

development of the project. It has been my great privilege to work under his inspiring guidance. I am

also thankful to my parents and my friends for their indelible co-operation for achieving the goals of

this study.

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 TABLE OF CONTENT

PART - A

Declaration ....................................................................................................... 2
Certificate .......................................................Error! Bookmark not defined.
Acknowledgement ........................................................................................... 3

Executive Summary ………………………………………………….v

PART - B

• DESCRIPTION OF INDUSTRY
• EMERGING TRENDS AND TECHNOLOGIES IN THE
INDUSTRY
• Literature Review
• Industry Analysis

➢ COMPETITIVE FORCES MODEL (PORTER’S 5 FORCES)

❖ Intensity of Industry Rivalry

❖ Threat of Potential Entrants
❖ Bargaining Power of Suppliers
❖ Bargaining Power of Buyers
❖ Threat of Substitute Goods/Services
OR / AND

➢ FACTOR ANALYSIS (PEST ANALYSIS)

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 ❖ Political Factors
❖ Economic Factors
❖ Social Factors
❖ Technological Factors

OR / AND

➢ SWOT ANALYSIS

• Conclusion

• Bibliography

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 Executive Summary

The automotive industry is not extremely competitive it is also a vital component in creating and

maintaining a stable economy. In 2012 two of the top 100 America’s Fortune 500companies were in

the automotive industry. Ford was ranked number nine on the list acquiring over 20 billion dollars in

profits. The Ford Motor Company has continued to be one of the leading automotive companies in

the world. Part of their success has to deal with their ability to create and implement a successful

marketing plan. This marketing plan will provide an overall analysis of what has allowed the Ford

Motor Company to continually be successful year after year. After doing extensive research, we

were able to perform an industry analysis, a company analysis, and a marketing analysis. Each of

these analyses provides an in-depth overview of what makes The Ford Motor Company such

successful company year after year. Ford has been able to access their weaknesses, threats, and

opportunities in a way that they can use to their advantage. This paper examines each of these

components and explains why Ford Motor Company performs the actions it does. Our research

consisted of gathering and interpreting information and raw date from Ford and other research

companies in order to create our in-depth analysis of the Ford Motor Company. We then took these

findings and were able to compare them to leading competitors, such as General Motors and Toyota,

in order to see how the Ford Motor Company sets themselves apart of their competition.

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 Description of the industry

Introduction to automobile industry

The automotive industry comprises a wide range of companies and organizations involved in the

design, development, manufacturing, marketing, and selling of motor vehicles.

It is one of the world's largest industries by revenue. The automotive industry does not include

industries dedicated to the maintenance of automobiles following delivery to the end-user, such as

automobile repair shops and motor fuel filling stations.

The word automotive comes from the Greek autos (self), and Latin motives (of motion), referring to

any form of self-powered vehicle. Clarification needed]This term, as proposed by Elmer Sperry

quotation to verify (1860- 1930), first came into use with reference to automobiles in 1898.

Evolution of automobile industry

The automotive industry began in the1860swith hundreds of manufacturers that pioneered the horse

less carriage. For many decades, the United States led the world in total automobile production. In

1929, before the Great Depression, the world had 32,028,500 automobiles in use, and the U.S.

automobile industry produced over 90% of them. At that time, the U.S. had one car per 4.87 persons.

In 1980, the U.S. was overtaken by Japan and then became world leader again in 1994. In 2006,

Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top

spot with 13.8 million units. With 19.3 million units manufactured in 2012, China almost doubled

the U.S. production of 10.3 million units, while Japan was in third place with 9.9 million

units.[5]From 1970 (140 models) over 1998 (260 models) to 2012 (684 models), the number of

automobile models in the U.S. has grown exponentially.

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 Emerging Trends of Automobile Industry

Self-driving car

Imagine getting into your car, typing-or, better yet speaking-a location into your vehicle’s interface,

then letting it drive you to your destination while you read a book, surf the web, or nap. Self-driving

vehicles-the stuff of science fiction since the first roads were paved-are coming, and they’re going to

radically change what it’s like to get from point A to point B.

In 2009, Google started the self-driving car project with the goal of driving autonomously over ten

uninterrupted 100-mile routes. In 2016, Waymo, an autonomous driving technology company,

became a subsidiary of Alphabet, and Google's self-driving project became Waymo.

Since then, Waymo has invited the public to join the first public trial of autonomous vehicles
operated by the Waymo Driver and introduced its first fully autonomous vehicles operated by the
Waymo Driver on public roads without anyone in the driver’s seat.

Key Takeaways

1. The hype around driverless cars has grown rapidly over the past several years, with many big
technology companies getting behind the concept.

2. Google launched its Waymo division to develop and market consumer ready driverless
vehicles around the globe.

3. The company, along with several others in the tech and auto industries, is betting that
driverless cars will soon change the way we get around in a major way.

4. Among the revolutionary changes will be safer roads, fewer fossil fuels, and lower
transportation costs.

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Basic Technology Already In Use

“The building blocks of driverless cars are on the road now”, explained Russ

Rader, senior vice president of communications at the Insurance Institute for Highway Safety. He

pointed to the front-crash prevention systems that for several years have been able to warn drivers of

an impending obstacle and apply the brakes if they don’t react fast enough.

These systems were quickly followed by technology that allows cars to self-park by sizing up a free

spot and automatically steering into it, with the driver only controlling the accelerator and brake

pedals. Mercedes-Benz took autonomous driving even further when they introduced Drive Pilot,

which allows the driver to hand over direct control of steering and speed in certain circumstances,

while still supervising the overall operation of the car.

In 2018, Waymo announced that they would be making self-driving cars available by 2020. However,

despite some extraordinary advancements, in the year 2020, self-driving cars are still out of reach,

except in some trial programs. The current technology on the market is limited to cars that will

automatically brake for you if they anticipate a collision, cars that help keep you in your lane, and cars

that can mostly handle highway driving.

The idea behind self-driving cars is fairly simple: build a car with cameras that can track all the

objects around it. The car should react if it’s about to steer into one. And once in-car computers know

all driving rules, they should be able to navigate to their destination. In the end, you might say that the

execution of these ideas has been more complicated than was anticipated.

Waymo's cars, the leader in self-driving technology, use high-resolution cameras and lidar (light

detection and ranging, which is a way of estimating the distance to another object by bouncing light

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and sound off things). This technology helps the self-driving car identify where other cars, cyclists,

pedestrians, and obstacles are and where they’re moving.

A Drastic Change

With the adoption of any new revolutionary technology, it is predicted there will be problems for

businesses that don’t adjust fast enough to future developments in self-driving car technology.

Futurists estimate that hundreds of billions of dollars (if not trillions) will be lost by automakers,

suppliers, dealers, insurers, parking companies, and many other car-related enterprises. And think of

the lost revenue for governments via licensing fees, taxes and tolls, and by personal injury lawyers and

health insurers.

Who needs a car made with heavier-gauge steel and eight airbags (not to mention a body shop) if

accidents are so rare? Who needs a parking spot close to work if your car can drive you there, park

itself miles away, only to pick you up later? Who needs to buy a flight from Boston to Cleveland when

you can leave in the evening, sleep much of the way, and arrive in the morning?

Indeed, one of Google’s goals is to facilitate car-sharing. That means fewer cars on the road. Fewer

cars, period. Who needs to own a car when you can just order a shared one and it’ll drive up minutes

later, ready to take you wherever you want?

This has the potential to dramatically reduce the number of cars on the street, 80% of which have

people driving alone in them, and also a household's cost of transportation, which is 18% of their

income-around $9,000 a year-for an asset that they use only 5% of the time,” said Robin Chase, the

founder and CEO of Buzz car, a peer- to-peer car-sharing service, and co-founder and former CEO of

Zipcar.

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 INDUSTRY ANALYSIS

5 Ways Self-Driving Cars Could Make Our World (And Our Lives) Better

1. Making our roads safer

While there have been some high-profile cases of autonomous vehicles being involved in tragic fatal
accidents, data suggests that self-driving cars will ultimately make our roads safer. Statistics from
the National Highway Traffic Safety Administration (NHTSA) show that driver error is by far the
biggest cause of road traffic accidents, due to factors like miscalculations, errors of judgment,
speeding, drink-driving, and phone use. In fact, an alarming 94 percent of serious crashes are down
to human error. Fully autonomous vehicles would take human error out of the equation, thereby
making our roads safer not just for drivers, but also passengers, cyclists, and pedestrians. For that
reason, the NHTSA has championed the safety benefits of autonomous vehicles.

2. Easing parking woes

It’s also hoped that autonomous vehicles will improve parking in congested cities because driverless
vehicles could simply drop passengers off and move on. This becomes increasingly realistic if the
motorists of the future choose not to purchase their own self-driving vehicle, but instead make use of
automated ride-sharing or taxi services. As an added bonus, with fewer people needing to find a parking
space, land that is currently used for huge car parks could be repurposed for much-needed housing or
attractive public spaces. With this in mind, the city of Chandler in Arizona has already changed its
zoning laws to accommodate autonomous vehicles; developers will now be able to build properties with
fewer parking spaces, so long as they provide suitable curb- side passenger loading zones. In other
words, the buildings of the future may no longer be flanked by huge, ugly car parks, and will instead
favour dedicated areas for drop-offs and pick-ups.

3. Making the daily commute more bearable

When we reach the point where human intervention behind the wheel is no longer needed, autonomous
vehicles will drastically improve the daily commute. Imagine, instead of sitting behind the wheel, you’ll
be able to stretch out in the back, get ahead on some work, or simply relax and catch up on your latest
Netflix obsession. When you think that Americans spend 19 full working days a year stuck in traffic on
their commute, that’s an awful lot of time commuters will be able to claw back for themselves.

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 4. Reducing emissions (well, in theory)
In the future, with the majority of self-driving vehicles being electric or hybrids, and given the fact that
autonomous vehicles drive more efficiently than humans, we could see a serious reduction in emissions.
That’s the hope, anyway. One study by the University of California, Davis suggests that automated
vehicles could reduce greenhouse gas emissions by as much as 80 percent by 2050 3 but only if the
vehicles are
electric and shared. If we don’t transition towards more shared vehicles, then the worrying prediction is
emissions could actually increase (by as much as 50 percent by 2050, according to the same study). This
is because self- driving cars could make car ownership possible for people who cannot drive, potentially
increasing the number of vehicles and miles driven. Therefore, this benefit is far from a foregone
conclusion. As a society, we’ll need to rethink our attitude towards car ownership if we’re to reap the
full environmental benefits of autonomous vehicles.

5. Cutting domestic air travel

Volvo’s 360c concept car, which was unveiled in 2018, provides a glimpse of a future in which self-
driving cars are no longer just cars 3 they’re places to work, sleep, and relax. Almost a cross between a
hotel room and the first-class cabin of a plane. Volvo’s vision is one of a luxurious, driverless future in
which a car can pick you up and take you wherever you need to go, potentially eliminating the need for
short-haul, domestic air travel. With Volvo’s concept, you would be able to order a car, pre-order food
and drink, and then recline and relax in the back while the car transports you to your destination. You
then arrive fresh-faced and relaxed, having endured none of the stress and exhaustion of plane travel.
Particularly for journeys that could be made overnight, this vision could seriously disrupt the travel
industry 3 and cut the carbon footprint associated with travel. This move towards autonomous vehicles
is just one of 25 technology trends that I believe will transform our society.

TOP 5 COMPANIES IN THE AUTOMOBILE INDUSTRY:

Tesla
In terms of autopilot functionality in vehicles, Tesla has long been a pioneer, even naming their device
‘Autopilot’. Their device is one of the most advanced and precise on the road, so the cars just keep
getting progressively better. The main drawback is that only steering wheel inputs are used for driver
tracking to assess if the driver is concentrating vs facial monitoring.
With strong features coming out all the time, Tesla constantly upgrades Autopilot. It is so powerful,
however, that it can be used just about anywhere, which means that it is up to the driver to concentrate
and use it correctly as driver monitoring is only through the steering wheel.

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Waymo
Waymo produces a range of self-driving vehicles specifically to accommodate the transport needs of
drivers around the country, including both commuter vehicles and autonomous vehicles for commercial
and personal use. Waymo today offers tested and validated self-driving technologies designed to adapt
rapidly and effectively to environmental conditions and user feedback, tracing their roots to research
projects undertaken by Google.

Pony.ai
Another leader of self-driving car technology, Pony.ai, with Artificial Intelligence assistance, aims to
offer advancements in smart driving technology. By establishing fully autonomous self-driving smart
vehicles, Pony.ai wants to reshape the transportation system. The self-driving car business claims for
the cars to be efficient, secure and cost-effective. Pony.ai believes that the most realistic route to get the
first generation of self-driving cars to market is a practical engineering strategy.

Volvo
Volvo has long been a pioneer in safety technologies and was one of the first firms to bring innovative
safety devices and lane centring to its full vehicle portfolio. As they have chosen to shift platforms, they
have lately had some self-driving failures, delaying more advanced autopilot-like functionality.
When it comes to autopilot performance, Volvo’s Pilot Assist II is just appropriate. In regular traffic,
it’s effective, but we wouldn’t trust driving on roads with curves to Pilot Assist as it has difficulties
remaining in the lanes.

Voyage
For its operations, Voyage has a novel purpose. The goal of this self-driving car company is to introduce
self- driving autonomous cars to senior communities to help elderly people move around the city in a
safe and better way. The ability of the organization to begin adoption in senior living is that these
communities normally transit in other communities at a slower pace than the majority of the drivers.
It is a major thing to overcome the mobility problems of elderly people. Voyage is also proud to carry
all of its customers securely, easily, and affordably to their destination.

Effects after adaptation of self- driving car in the world :

Autonomous vehicles (AVs) represent a major innovation for the automotive industry, but their
potential impact with respect to timing, uptake, and penetration remains hazy. While high levels of

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 uncertainty currently surround the issue, the ultimate role that AVs could play regarding the
economy, mobility, and society as a whole could be profound. In an effort to look beyond today’s
rapidly changing predictions on AV penetration, we interviewed more than 30 experts across Europe,
the United States, and Asia and combined these findings with our insights to arrive at ten thought-
provoking potential implications of self-driving cars.

The widespread use of AVs could profoundly affect a variety of industry sectors. To explore these
implications in depth, we focused on three-time horizons of AV diffusion: before such vehicles are
commercially available to individual buyers, when they are in the early stage of adoption, and when
they become the primary means of transport (exhibit).

Figure 1

1. Industrial fleets lead the way:

While it’s unlikely that any on-road vehicles will feature “fully autonomous” drive technology in the

short term(for instance, by 2020322), AVs are already a reality in selected applications that feature

controlled environments, such as mining and farming. In these cases, the restricted nature of
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operations and the possibility to operate on private roads facilitate adoption. Some of the benefits of

autonomy in these fields include labour-cost savings and the reduction in carbon dioxide (CO2)

emissions through optimized driving (shown to cut emissions by as much as 60 percent). Other

adjacent equipment applications-for example, in the construction and warehousing sectors-should see

the next AV applications for vehicles such as excavators, forklifts, and loaders. In the medium term

(through 2040), on-highway trucks will likely be the first vehicles to feature the full technology on

public roads. Prototypes already exist, and companies are currently developing the software

algorithms needed to handle complex driving situations. Long-term automated commercial fleets

might include vehicles for parcel delivery as well as automated drones, which multiple players are

already field-testing.

2. Car OEMs faces a decision:

Automakers worldwide will likely define and communicate their strategic position on AVs in the next

two to three years. We have identified four strategic stances they can assume when introducing their

autonomous-vehicle offerings:

Premium incumbents. Established premium players with extensive customer bases and strong

technical and commercial legacies will probably take an incremental approach to AVs. This likely

means they will gradually introduce increasing levels of advanced driver-assistance systems (ADAS)

in their vehicles.

Attackers. New industry players developing “radically new” vehicle architectures-such as high-tech

giants, first- tier suppliers, and mobility operators-will focus on the “accessible mobility” consumer

segment to capture volumes quickly and sustain ancillary business models.

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Fast followers. These OEMs have significant technical and commercial legacies. They will most likely

invest in AV research and then wait for the vehicle-level costs of the core technologies to drop while

penetration in the premium segments grows.

Late entrants/nonadopters. As the name implies, these automakers will avoid entering the AV market

in the short to medium term.

3. New mobility models emerge:

While OEMs are developing autonomous vehicles, a variety of other transport-mobility innovations

are already hitting the road. Many of these take the form of pay-per-use models such as car sharing,

carpooling, “e-hailing” taxi alternatives, and peer-to-peer car rentals. These plays are attracting

investments and seeing impressive growth rates. The e-hailing model in particular has experienced

strong growth given both annual investment funding and market penetration.

4. The car-service landscape changes:

The proliferation of AVs could represent an opportunity for car OEMs. As of 2014, for example,

roughly 80 percent of the car-service shops in Germany were “independent” from OEMs. Given the

safety critical nature of AV technologies, customers might strongly prefer strict adherence to OEM

service processes and the use of original service equipment when it comes to maintaining and

repairing AV systems. This could imply a disadvantaged position for independent service providers

unable to afford AV-maintenance systems. Furthermore, our research shows that nearly 60 percent of

customers would follow their smart cars’ recommendations for service locations. Beyond the benefits

of a bigger aftersales revenue stream, OEMs will have a strong incentive to service these vehicles,

since regulators could ultimately force them to take on the greatest portion of the responsibility and

risk associated with crashes caused by AV technical failures.

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 5. Car insurers might shift their business model:
Car insurers have always provided consumer coverage in the event of accidents caused by human

error. With driverless vehicles, auto insurers might shift the core of their business model, focusing

mainly on insuring car manufacturers from liabilities from technical failure of their AVs, as opposed

to protecting private customers from risks associated with human error in accidents. This change could

transform the insurance industry from its current focus on millions of private consumers to one that

involves a few OEMs and infrastructure operators, similar to insurance for cruise lines and shipping

companies.

6. Companies could reshape their supply chains:

AV technologies could help to optimize the industry supply chains and logistics operations of the

future, as players employ automation to increase efficiency and flexibility. AVs in combination with

smart technologies could reduce labour costs while boosting equipment and facility productivity.

What’s more, a fully automated and lean supply chain can help reduce load sizes and stocks by

leveraging smart distribution technologies and smaller AVs.

7. Drivers have more time for everything:

AVs could free as much as 50 minutes a day for users, who will be able to spend traveling time

working, relaxing, or accessing entertainment. The time saved by commuters every day might add up

globally to a mind-blowing one billion hours-equivalent to twice the time it took to build the Great

Pyramid of Giza. It could also create a large pool of value, potentially generating global digital-media

revenues of €5 billion per year for every additional minute people spend on the mobile Internet while

in a car.

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 8. Parking becomes easier:
AVs could change the mobility behaviour of consumers, potentially reducing the need for parking

space in the United States by more than 5.7 billion square meters. Multiple factors would contribute to

the reduction in parking infrastructure. For example, self-parking AVs do not require open-door space

for dropping off passengers when parked, allowing them to occupy parking spaces that are 15 percent

tighter.

9. Accident rates drop:

By mid-century, the penetration of AVs and other ADAS could ultimately cause vehicle crashes in the

United States to fall from second to ninth place in terms of their lethality ranking among accident

types. Today, car crashes have an enormous impact on the US economy. For every person killed in a

motor vehicle accident, 8 are hospitalized, and 100 are treated and released from emergency rooms.

The overall annual cost of roadway crashes to the US economy was $212 billion in 2012. Taking that

year as an example, advanced ADAS and AVs reducing accidents by up to 90 percent would have

potentially saved about $190 billion.

10.AVs accelerate robotics development for consumer applications.

The broad penetration of AVs will likely accelerate the development of robotics for consumer

applications (including humanoid robots), since the two share many technologies. These include

remote advanced sensing, hyper precise positioning/GPS, image recognition, and advanced artificial

intelligence. In addition to sharing technology, AVs and robots could benefit from using the same

infrastructure, including recharging stations, service centres, and machine-to-machine communication

networks. These commonalities might push multiple players to invest in both applications, as already

shown by the significant investments in robotics made by selected automakers and high-tech players.

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In addition to transforming the automotive industry, the rise of autonomous vehicles will likely have a

profound impact on society. The ten developments described here provide a snapshot over the wide

spectrum of possible outcomes linked to the increasing penetration of AVs in the market, offering

industry leaders a look forward at this evolving landscape as it unfolds before them. Defining how to

shape this landscape effectively represents a significant strategic challenge for the industry and

regulatory authorities in the coming years.

Global Automotive Industry Overview | Data and Analysis

In 2020, worldwide motor vehicle production fell sharply, dropping 15.4% from the previous year,

because of travel restriction measures and an overall decline in economic activity due to the COVID-

19 pandemic. Passenger cars experienced a more significant drop in production than commercial

vehicles, with decreases of 16.9% and 11.6%, respectively. This marks the third consecutive year with

negative growth in global automotive vehicle production. In contrast, global electric vehicle (EV)

sales increased 39% in 2020, to 3.2 million units, boosting the total global EV stock to 11.3 million

units.

The latest statistics from the International Organization of Motor Vehicle Manufacturers reveal a

major decline in production across all manufacturing regions, with the most significant decreases in

Latin America (24.8%), Western Europe (24%), and North America (20.3%).

Vehicle sales data show a similar story, with 2020 passenger cars sales registering a year-on year

15.9% drop and commercial vehicle sales dropping a less devastating 8.7%. In some world regions,

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passenger car sales decreased by more than 20% from 2019 levels; these include Latin America (down

29.3%), the NAFTA region (28.9%), Africa (24.7%), and Western Europe (21.1%).

Export trade also suffered a blow from 2020 coronavirus restrictions aiming to slow down the virus9s

spread.

Motor vehicle exports came to an almost complete standstill in Eastern Europe, Latin America, and

the Middle East, where yearly vehicle export totals were more than 97% below their 2019 levels.

Other regions experienced export decreases of 40350%.

Against the backdrop of an overall motor vehicle market contraction in 2020, exports and sales in the

global EV market registered lucrative growth. Global EV sales have accelerated by 39% in

comparison to 2019, while EV export trade increased by 18%. Germany now ranks second in EV

sales, after China, overtaking the United States in 2020. Norway was the top country by electric

vehicle sales share, with 75% of cars sold in the country being electric, followed by Sweden (32%),

Netherlands (25%), and Denmark (16%).

Global Motor Vehicle Production

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 EMERGING TECHNOLOGIES IN AUTOMOBILE INDUSTRY

SWOT Analysis of Self driving car:

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Strengths: Arguably the most significant benefit to automated vehicles is the potential for safer
transportation.

When machines can eliminate human error, the ability to control the flow of traffic is greatly
increased. While there are still concerns with machine hardware/software that pose risk, those risks
already exist in our current model of transportation (albeit on a simpler scale). Will Handfield,
transportation director for the Georgetown Business Improvement District, claims in his article that,
“Over 80% of [automobile related fatalities] are attributable to human error, either negligence,
distraction, incapacitation, malice or other uniquely human quality.”

It’s also worth mentioning that a major strength to automated driving are the stresses that would no
longer be a part of daily life. The morning commute to work would be relaxing as you drank coffee
and read the newspaper. No longer would it be uncouth to be caught using an electric razor or applying
mascara by fellow commuters. Now, you’ve got nothing but time as you ride to work.

Weaknesses: The weaknesses presented by automated driving come in varied forms. The initial
concern would be the reliance on technology. Driving can be a very dangerous task, and to put that
task entirely under the control of an automated system is frightening. In an automated transportation
system, safety is completely reliant upon the infrastructure of the program.

How long will it take to develop such an infrastructure? Regulations need to be determined for
manufacturers, and traffic systems may need to modified in order to make automated driving possible
in some areas. A massive amount of data needs to be collected and hours upon hours of testing need to
be conducted before implementation could be possible. Alexis Madrigal states in her article that, “So
far, Google has mapped 2,000 miles of road. The

US road network has something like 4 million miles of road.”

There are other, more abstract, factors to consider as well when talking about weaknesses. What are
the legal implications of self-driving cars? If an autonomous vehicle is involved in a crash, who is held
liable? The owner of the vehicle? The manufacturer?
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And what about the vehicles ability to make tough decisions? Kyle Stock poses a scenario in his
article; “Consider a bus swerving into oncoming traffic. A human driver may react differently than a
sentient car, for example, if she noticed the vehicle was full of school kids. Another person may
swerve differently than a robot driver to prioritize the safety of a spouse in the passenger seat.” [9]
Opportunities: The opportunities presented by autonomous transportation are seemingly limitless.
Obviously, business and manufacturing will suffer losses and experience gains. Jobs like taxi and bus
drivers will go away, but new occupations will emerge in the industry.

Manufacturing itself will change dramatically. Handfield claims that cars will be parked for 98% of
their lives (which currently average 15-26 years). However, autonomous cars would present a new
paradigm for transportation; one much fewer cars spend much more time on the road. The opportunity
for ride-sharing will present an entirely new life-cycle for automobiles. Handfield claims,
“Automobile manufacturers will have to adapt the volume of vehicles they produce annually. While
many fewer cars will be needed across the economy, those that are autonomous will be driving much
more frequently. Their replacement cycle would be more similar to police vehicles, which only last
around 3-5 years before wear and tear makes replacement a better option than repair.” [5]

Alongside this change in the manufacturing paradigm could be the ownership structure. While cars
may become

more expensive, the need to own one might be less crucial for many Americans. Instead, ride sharing
may become much more popular, turning transportation into more of a payas-you-go service.

As the country prepares to shift towards another system of transportation, this could also become the
perfect opportunity to incorporate more electric technology into automobiles, thus reducing carbon-
emissions. Handfield argues that although there are big pushes to spread multiple charging ‘kiosks’ in
certain areas, an automated transportation structure would allow for central charging stations instead.

IssiRomem, PhD in economics at the University of California, Berkeley, argues there will be indirect
impacts on the economy as well. In his article,

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Romem argues two main points; that autonomous cars will cause cities to expand, and that they will
decouple buildings and parking lots, which will make available valuable land for development. By
changing the way that we commute, the need to park locally will significantly decrease (if not
disappear in some areas). This means that mean areas will be able to develop much more space
currently allocated to parking structures.

Romem also argues that, alongside developing this unused space, people will be more willing to
commute, which will cause cities to grow. He states, “Like suburban rail in the early twentieth century
and the mass consumer automobile that followed, driverless cars will generate a gradual, but dramatic
expansion of cities.” [6]

Threats: While the opportunities to self-driving cars might seem limitless, so might the threats.
Perhaps the greatest threat is the potential for injury via unforeseen scenarios. Stock states, “In a crash
situation, human drivers are processing a staggering amount of information in fractions of a second.
The computer is doing the same thing, but much faster, and its decisions are effectively already made-
set months or years earlier when the vehicle was programmed. It just has to process; it doesn’t have to
think.”

But what happens when a scenario presents itself that the programmers didn’t foresee? Or a set of
factors arise that the decision-making algorithm cannot process?

And what about the job sector that will be altogether eliminated?

Autonomous driving would create a transportation revolution, not only economically, but culturally.
Handfield reiterates the common topic of isolationism when he says, “As urbanists, we’ve often
succumbed to a gut reaction that cars are bad, transit is good. However, the reality is that it is not cars
that are bad, but the single-occupancy driver paradigm that is so damaging to our environment, urban
fabric and quality of life.” While self-driving cars might change the way we own and share
automobiles for transportation, will it isolate us further from one another? [5]

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The technology itself also poses major threats. Will the software systems be tamper-proof? What if
someone reprogrammed a self-driving car for malicious purposes?

In order to operate efficiently, there must be a single, ultimate network on which these vehicles
communicate and operate with one another. Privacy concerns will surely arise when your location can
be tracked based on your transportation history. Surely someone will seek to collect and sell that
information much the same way your browsing habits are recorded online. Public response to such an
invasion of privacy could have a staggering effect on the implementation of a self-driving automobile
into society.

All of these threats (and many more) will likely become factors in the biggest threat to autonomous
driving; the special interest lobby. There are a lot of people with a lot of money that would not like to
see the current paradigm of transportation change. Auto manufacturers, driver’s unions, oil companies,
etc. The list is potentially endless of influential groups that would see self-driving cars as a threat.

Autonomous vehicles in reality

IoT innovations have made autonomous vehicle testing a reality and certain applications possible,
causing rumours of imminent autonomous vehicle distribution, but the widespread deployment of fully
autonomous cars won’t see roadways soon, said Nick Twork, senior communications counsel at Argo
AI.

Most major autonomous vehicle companies have carried out successful tests, but many autonomous
vehicles still have a human present in the vehicle in case of error, he said.

“The technology is not done. It’s not ready for commercial applications,” Twork said. The technology
simply does not yet exist to support completely autonomous vehicles, which can navigate highways,
congested metroplexes, or harsh driving conditions.

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Michael Ramsey, senior research director of automotive and smart mobility at Gartner, said that in the
next few years, we are realistically “more likely to see shuttles and semi-public transportation in the
form of slow-moving, granny-like vehicles that are operating in cities and dense urban areas. It may be
that they operate in protected or semi-fixed routes for some time to come.”

Along with technological limitations, safety is another major barrier to both development and public
adoption.

“Delivering self-driving cars at scale isn’t just about winning the tech race, it’s about winning the tech
race and the trust race,” ElShenawy said. “When you’re working on large-scale deployment of
mission-critical safety systems, the mindset of ‘move fast and break things’ doesn’t cut it.”

While fully autonomous vehicles still have a long road ahead of them, some companies are using
available technology to make waves in the industry.

Top three companies steering the movement

There are numerous autonomous vehicle organizations, but some stand out more than others. Based on
empirical data and public statements made by various companies, a semi-consensus exists in the
autonomous driving community as to which companies are the most advanced, said Gartner’s Ramsey.
These include Waymo, GM Cruise, and Argo AI.

1. Waymo

Google and their Waymo spinoff are by far the most recognized leader in the area. They’ve been doing
it longer than anyone else. Their fleet is significantly larger than any other companies,” Ramsey said.
“They very recently announced to consumers on their platform in Arizona that they’re going to start
launching actual autonomous rides, which is a significant step forward. I don’t think anyone else is
that close to being able to physically take the engineer out.”
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Waymo used Phoenix, Arizona, as the site for testing Waymo One, a self-driving taxi service. These
tests all had a human backup driver in their vehicles as a safety precaution, but a recent email was sent
out to Waymo users claiming that completely autonomous rides were on the horizon.

Fully autonomous rides have been tested, but it’s unclear whether these rides will become mainstream.
Regardless, the prospect is the most advanced gesture yet from an autonomous vehicle company.

According to Waymo, “the self-driving sensor suite consists of LiDAR, cameras, and radar, as well as
microphones to detect sounds such as sirens. Like a person’s own five senses, Waymo’s self-driving
technology is more powerful as a whole than the sum of its parts; each sensor complements the
others.”

Waymo began developing its own hardware and sensors in-house in 2011 when it found nothing else
on the market provided the functionality that would enable level-four vehicles and fully driverless
cars, the company said.

A level four vehicle refers to a simple driverless vehicle, similar to the earlier airport shuttle example,
which can operate at slower speeds and within certain parameters, said Smith. There are five
autonomous driving levels, which help discern how autonomous a certain vehicle is, ranging from a
driver-assistance level one, to a fully autonomous level five.

“Waymo is pretty unambiguously the leader,” Smith noted, as the company has come closest to
producing a level five automobile than any other company.

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 2. GM Cruise

GM Cruise is in a pretty good position,” Smith said. A General Motors subsidiary, Cruise is also a big
name in the autonomous vehicle game.

“Each of our self-driving cars has been built from the ground-up,” ElShenawy said. The Chevy Bolts
may look like a regular retail model on the outside, but under the hood, 40% of its parts have been
altered to facilitate autonomous driving, he said.

“Unlike other autonomous vehicle companies, being deeply integrated with one of the world’s largest
automakers like General Motors positions Cruise to manufacture self-driving cars on an assembly line
in Orion, Michigan, which is capable of producing hundreds of thousands of vehicles per year,”
ElShenawy continued.

The Cruise vehicles use machine learning techniques, cloud-based tools, and IoT sensors to gather
data about their surroundings and make intelligent decisions based on that insight.

3. Argo AI

A newer creation, Argo AI has a “very significant footprint and growing footprint in the United States
with the number of cities that they are testing in, and also, with the recent partnership with
Volkswagen, I think they have the potential to kind of take a leadership position,” Ramsey said.

Argo AI is an independent company that started in 2017, with a $1 billion investment from

Ford Motor Company, Twork explained. Volkswagen only recently joined the partnership, which is
still undergoing regulatory review, investing another $2.6 billion, he added.
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Argo AI specializes in a different platform than its competitors in that it isn’t striving to develop a car
or operate a service. Rather, the company’s goal is to develop the self-driving system.

“The vehicles that are being used are Ford Fusions, but that’s not necessarily the intent of what the
final product will be 3 it’s obviously up to Ford to decide which vehicles they want to use,” Twork
noted. “What’s unique about Argo is that we’re developing the self-driving system. We are not
developing a car; we’re not going to be the operators of the services. That’s something that our
partners will be doing on their own or in conjunction with other partners potentially.”

The benefit of close partnerships with car manufacturers is that Argo AI is able to focus on the
technology, developing it at a much deeper level, Twork said.

The outside of Argo AI-equipped vehicles has a combination of sensors 3 LiDAR’s, radars, and
cameras. The LiDAR is used to locate the distance of objects, and cameras help with depth perception,
Twork explained.

Two people are in all of Argo AI’s vehicles at all times, in case the vehicle needs intervention from a
driver,

Twork added. The second person is there to help take notes on the car’s functionality and behaviour,
locating areas in which the software can be improved.

“In a very short period of time, we’ve been able to basically put the system at a level of maturity far
beyond what other companies of our age have been able to do,” he claimed.

While completely autonomous vehicles won’t become mainstream in the next few years, Waymo, GM
Cruise, and Argo AI are making significant advances in the driverless car market. As IoT technology
continues to improve, strides toward fully autonomous vehicles are sure to follow.

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More information of technology:

Self-driving cars are the latest Technology In the automobile industry world-wide.

Possible implementations of the technology include personal self-driving vehicles, shared robot axis,
connected vehicle platoons and long-distance trucking. Several projects to develop a fully self-driving
commercial car are in various stages of developmentary became the first service provider to offer rob
taxi rides to the general public in a part of Phoenix, Arizona in 2020, while Tesla has said it will offer
subscription-based “full self- driving” to private vehicle owners in 2021,[9][10] and Nuro has been
allowed to start autonomous commercial delivery operations in California in 2021. In China two
publicly accessible trials of robo-taxis have been launched, in 2020 in Shenzhen’s Pingshan District by
Chinese firm AutoX[12] and in 2021 at Shou gang Park in Beijing by Baidu, a venue for the 2022
Winter Olympics.

Benefits of new self-driving cars:

Higher levels of autonomy have the potential to reduce risky and dangerous driver behaviours. The
greatest promise may be reducing the devastation of impaired driving, drugged driving, unbelted
vehicle occupants, speeding and distraction.

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Greater Independence

Full automation offers more personal freedom.

People with disabilities, like the blind, are capable of self-sufficiency, and highly automated vehicles
can help them live the life they want.

These vehicles can also enhance independence for seniors.

Ride-sharing of HAVs could reduce costs of personal transportation, providing more affordable
mobility.

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Saving Money

Automated driving systems could impact our pocketbooks in many ways.

HAVs can help avoid the costs of crashes, including medical bills, lost work time and vehicle repair.
Fewer crashes may reduce the costs of insurance.

More Productivity

Wide-scale deployment of HAVs could allow drivers to recapture time.

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In the future, HAVs could offer the convenience of dropping vehicle occupants at their destination,
whether an airport or shopping mall, while the vehicle parks itself.

In a fully automated vehicle, all occupants could safely pursue more productive or entertaining
activities, like responding to email or watching a movie.

Reduced Congestion

Several causes of traffic congestion could be addressed by HAVs.

Fewer crashes or fender benders mean fewer roadway backups.

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HAVs maintain a safe and consistent distance between vehicles, helping to reduce the number of stop
and-go waves that produce road congestion.

Environmental Gains

HAVs have the potential to reduce fuel use and carbon emissions.

Fewer traffic jams save fuel and reduce greenhouse gases from needless idling. Automation 3 and car-
sharing - may spur more demand for all types of electric vehicles. When the vehicle is used more
hours a day through car-sharing, any up-front battery costs could be shared also, increasing the
economic appeal of electric cars.

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 Conclusion

Self-driving cars promise to be an efficient and sustainable mode of transportation for everyone,
preventing accidents and making commuting convenient for all. Hardware and especially AI software
development is what’s driving the industry forward.

Fully autonomous cars are no longer science fiction and soon will become part of everyday life. We
live in a new era of transportation where vehicles driven by humans are being replaced by computer-
aided driverless cars. Experts anticipate a $556.67 billion market size for the global autonomous
vehicle market by 2026, with a 39.47% growth rate within the next 5 years. Imagine how reality might
look in the near future.

Bibliography

IBEF. (2022, February 22). Retrieved from https://www.ibef.org/industry/india-automobiles

Schooley, S. (2022, April Thursday). business. Retrieved from

https://www.businessnewsdaily.com/4245-swot-analysis.html

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