Figure 1: March units sold in North America by major automakers.
With a large number of other industries, such as steel and logistics, dependent on the automotive industry, the slowdown in auto sales due to COVID-19 is creating quite a ripple effect. Even after businesses reopen, social distancing will continue; therefore, the auto industry will need to adapt to new ways of working.
With declining demand in view, automotive companies are examining their strategies and operational plans for the post–COVID-19 world (see Figure 2). The current priority is to enable a remote workforce where possible, reduce operational costs, and invest in digital technologies that keep customers engaged and provide financial relief. Auto manufacturers know that they have to continue funding CASE (Connected, Autonomous, Shared and Electric) innovations to stay ahead of their competitors and increase focus on cybersecurity as remote workplaces and collaborations have opened new threat vectors. Although Industry 4.0 initiatives may slow down in the near term, manufacturers realize its importance to create resilient supply chains and manufacturing operations in the future. Additionally, M&As and increased resource pooling will help organizations weather the storm.
Figure 2: Post–COVID-19 strategy and operational plans.
The Automotive Industry in a VUCA World
The current situation is classic Volatile, Uncertain, Complex and Ambiguous (VUCA), but the COVID-19 challenge is not a one-off disruption. In an interconnected global economy, similar disruptions will continue. Organizations need a playbook to help reduce the impact to business during a crisis, increase agility, and adapt to a new normal. Figure 3 shows a sample roadmap created using the VUCA framework.
Figure 3: VUCA approach for automotive OEMs.
During this extraordinary situation, Wipro has developed a playbook to support its customers, as shown in Figure 4.
Figure 4: Wipro's rapid recovery solutions for automotive customers Figure 4.
Our solutions can help our clients spend less and recover faster:
The automotive industry is experiencing unprecedented challenges and uncertainty. Navigating unknowns, ambiguities, and disruptions is becoming the new normal. Developing a playbook to predict, respond, and adapt to these challenges is imperative for success.
Wipro’s IP-led solutions, digital tools, and end-to-end integrated services can help clients overcome crisis and develop new ways of working.
CTO, Automotive (firstname.lastname@example.org)
Mohan has more than 20 years of consulting experience with comprehensive business/technical skill set in program management, architecture, and business process reengineering. His specialties include Digital Transformation, Cloud Strategy, Enterprise Architecture, Identity and Access Management, Enterprise Integration, Service Oriented Architecture, and Business Process Management.
Consultant, Automotive (email@example.com)
Krishna is a senior executive with more than 20 years of IT experience in Designing Solutions, Program Management, and Consulting. Krishna brings with him functional, technical and delivery experience from executing large programs, managing key pursuits, and designing and building software solutions in Manufacturing, Supply Chain, Connected Vehicle, Automotive BI, Dealer Systems, and O2C processes.