The automotive industry is in for the ride of its life. There are many innovations that are quickly and dramatically changing the marketplace. Due to the demand for reduced emissions, electronic vehicles (EV) are driving big changes in the industry. Learn how this will affect the future of automotive franchises if you are considering being part of this evolving yet lucrative industry.
As the future unfolds in the auto industry, the watch word is technology. According to Forbes, business models are advancing with a focus on: sustainability, a changing consumer behavior, electronic vehicles, connected cars, and onboard sensors.
Although the computer chip crisis affected auto production in 2021, that is just a blip on the screen when it comes to the big picture in the industry. Newer vehicles on the roads have anywhere from 30 to 50 different computers onboard, with as many as 100 electronic sensors. These computers we are driving have intricate hardware, but the software is what’s accelerating.
The industry focus is on connectivity. Experts say this is in the early stages of development but it’s a big part of what the competition is focusing on. Twenty percent of vehicles on the road right now have internet connectivity, reports predict a 30 percent rise per year in wireless networking capability.
High tech cars include the growth of autonomous vehicles. Industry leaders continue to analyze, adjust and test self-driving cars for safety and durability. This Jetsons-era technology centers around the onboard computers that are responsible for not only moving the vehicle but also navigating through traffic and maneuvering through road networks without human supervision or decision-making. There are about 31 million autonomous vehicles on the roads now, with that number expected to nearly double by 2024.
EVs Are Changing the Industry
When you drive around, you have most likely seen parking lots with parking spaces furnished with electric charging stations designed for EVs. Count on the number of spaces to increase rapidly with the growth of this modernization. The biggest consumer demand is with environmentally sustainable vehicles, and the industry is working to meet those needs. Sparked by the desire to reduce the carbon footprint by decreasing the number of gasoline-powered vehicles in the environment, we are seeing tremendous growth in both hybrid and electronic vehicles. That will undoubtedly affect the future of automotive franchises that will need to meet this ever-growing trend. Recent stats show the electric vehicle industry is worth more than $287 billion right now, expected to climb at a rate of 24 percent to 1,318.22 billion by 2028.
According to Car and Driver, nearly every automaker now either offers one or more EVs or has them coming soon.
The push may be fueled by government leaders who are proposing expansion of tax credits to citizens who purchase union-made, zero emission vehicles. The goal of is to have 50 percent of U.S. vehicle sales being EV by 2030.
Which means leading car manufacturers are working double-time to produce affordable high-tech electronic vehicles with improved battery-life and advanced plug-in capability to make car charging availability easier.
Future of Automotive Franchises
All these technological improvements in vehicles coming off the belt mean big adjustments for after-care automotive franchises. Cars are equipped with sensor technology for maintenance tracking and monitoring. Those sensors communicate problems which improve overall car care. Drivers will understand issues the vehicle is having, and after-care specialists can pin-point repair.
AAMCO is Leading the Future
Here at AAMCO, we have positioned ourselves to grow with the innovative trends and be a leader in complex car care. We are a legacy brand embracing the future with a vision devoted to driving revenues to franchise owners.
The cars of today are much different than the ones AAMCO serviced more than 50 years ago. As the auto industry moves toward hybrids and electric vehicles, AAMCO’s legacy as the brand that specializes in complex repairs, positions us to become the go-to brand for fixing this new generation of vehicles.
Equipped with the foundational technology to grow into the future as complex car repair specialists we also are making owning and operating an AAMCO center easier than ever before.
We are proving our commitment to ensuring customers receive the best high tech industry advancements through the creation of AAMCO university. Our franchisees are sending their technicians to our state-of-the-art training facility, for hands-on instruction of electric and hybrid vehicles.
If you are interested in growing with us as we navigate into the future of complex car repair, we are actively seeking single and multi-unit operators who are passionate about the brand and committed to providing the highest-quality service. Interested candidates should have a minimum net worth of $250,000 and liquid assets of at least $65,000 per unit. Depending on the real estate site selected, franchisees can expect the total investment to be $223,600-$330,500, with a $39,500 initial franchise fee.
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