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Is Automotive Innovation Slowing Down?

Considering the innovative history of the automative industry, is it now slowing down?

13Nov

In the Boston Consulting Group's annual innovation survey, only four car makers made the Top 20, whereas in 2013, the total amounted to nine. This is a considerable drop off considering that the automotive industry has been subject to two recent evolutions, the electric car and the connected car.

Despite the excitement surrounding these developments, there's yet to be much development around them. As of September 2014, only 600,000 electric have been sold around the world, with plug in electric cars only accounting for just 0.6% of America's traffic.

Much of this has been down to fear that the industry will experience a downturn in the coming years, putting more emphasis on cost cutting as car manufactures look to react to the apparent decline in the market.

Therefore, innovation is going to take a backseat as companies look to consolidate what they already have. That is unless you're Tesla Motors - the American car company who came up with the Model S electric car. They're still high up on the innovation list and continue to spend on it heavily.

The automotive industry needs to be disrupted to such an extent that it is sprang into life. Telsa has done this to an extent, but premium manufactures are quite happy to rest on there laurels at the moment.

It would be really disappointing to see the automotive industry fall out of its innovation pattern as it has so much untapped potential. Only time will tell, but another two or three companies like Telsa would surely be beneficial. 

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