As automotive industry transforms, expert reveals promising areas for investment  – London Business News | Londonlovesbusiness.com

The past decade has been exceptionally transformative for the automotive industry.

The next decade is expected to bring about changes like increased reliance on innovation and service connectivity, slated to boost car revenue by 30%.

Given new customer behaviors aimed toward sustainability and technological advancements, some automotive industries will be a lucrative choice for investment.

Kristijonas Minelga, Head of Business Development and Franchise at PRO BRO, the fastest-growing international franchise network of express tunnel car washes in Europe, says although the industry has already experienced major transformations, continued significant changes are well underway.

“The transportation industry is bound to keep on shifting, making it a profitable industry to invest in. We can see that the adoption and advancements of artificial intelligence will be big drivers of that shift. As technologies are steadily improving the driving experience, road safety, and traffic efficiency, the investment opportunities are expanding as well,” Minelga added.

Sustainability and technology-driven solutions

For 62% of consumers, sustainability concerns have been a pivotal turning point in changing their transportation modes. Ford has already been producing more hybrid models to help consumers ease into the idea of driving fully electric cars in the near future. Despite the slowdown in the electric car industry, experts believe that EVs are still going to be firmly associated with the automotive industry and will shape people’s purchasing decisions.

“The technological advancements related to electric vehicle parts like batteries have made major changes in customer preferences. EVs have not only become more compliant with environmental regulations but are also a top preference for many of the eco-aware car owners,” Minelga says. “As the demand for sustainable means of transport grows, investments in EVs, technologies that enhance battery performance, efficiency, and longevity, as well as charging infrastructures in general, can be especially promising.”

Minelga points out that drivers are also looking for ways to simplify their trips. It is estimated that self-driving cars will amount to 15% of new cars by 2030 and fully autonomous trucking might be viable as soon as 2028. For this reason, investors should be exploring the autonomous vehicles sector.

“Companies that are developing AV technology, their hardware and software, as well as building AI-driven systems, are expected to demonstrate an exponential growth. Already major steps have been taken regarding testing out the AVs’ autonomy in controlled settings. For this reason, the industry is bound to generate high ROI,” the expert maintained.

Speaking of technologies that make driving easier, advanced driver assistance systems (ADAS) are becoming a standard in new vehicles. Sensors, cameras, and software for the systems are continuously developed, creating new investment opportunities. Similarly, connected car technologies allowing access to data on weather, traffic lights, pedestrians, or environmental factors are gaining interest among drivers as a way to ensure road safety and avoid potential accidents. According to Kristijonas Minelga, the industry is estimated to keep on advancing; therefore, investment prospects seem worth looking into.

New focus on car care

Growing concerns for the environment are also turning the car owners toward other sustainable forms of car care. Modern car washes can recycle up to 90% of service water, while smart scanning features can detect the level of dirtiness and adjust the amount of chemicals used.

Aside from minimizing their ecological footprint, drivers are prioritizing their time; therefore, spending minutes at in-bay car wash no longer corresponds with their needs.

“When it comes to car maintenance, speed and efficiency are usually top priorities for consumers. And thanks to the latest technologies, car washes can get them in and out of the facility in as little as 96 seconds. Express tunnels are capable of washing 220 cars in an hour while regular or mini tunnels and in-bay car washes clean 40-50 during the same time,” Minelga said. “Investment-wise, this means a much faster car turnover and higher financial return.”

Investing in a car wash franchise might be the way to step ahead of the game. Becoming a master franchisee of a car wash allows investors to build on an already established business model, taking advantage of the brand recognition and benefiting from the support of the franchisor.