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Japanese Carmakers Hesitant to Keep up with Technological Advancements

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Published on : Jan 27, 2015

Despite the fact that carmaking companies all over the world have been experimenting with electronics and advanced technologies, Japanese automakers refuse to accept the fact that the automobile industry could be heading towards the same fate as smartphones and personal computers.

The introduction and race towards self-driving features has had many fear the advent of commoditization in the auto industry. Newly entered participants such as Google have stepped into the world of cars as software gains increased significance and puts a dent in conventional manufacturing procedures. 

For Japan, this isn’t something new. As international competitors in the consumer devices sector such as Samsung and Apple developed new software and made devices user friendly and cheaper, electronics groups in Japan such as Panasonic, Sharp, and Sony lost lead in the industry. 

Industry analysts warn Japanese automakers such as Toyota and others that if they fail to keep up with the technological advances they will be met with the same fate as the electronics devices. These advanced technologies, in the long term may end up in autonomous or self driving vehicles. But in the short term, incorporating electronics systems into autos could help perform tasks while driving and help in improving safety.

Japan has always prided itself for its electronics industry owing to its innovative manufacturing prowess. However, the country ultimately failed to retain its competitiveness, states analyst Takaki Nakanishi. He added that if the country wasn’t careful and stays the way it is currently, the automobile industry could suffer from the same fate.

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