DELTA Summit: Carmakers, legislators need to respond to changing consumer demands

As Internet of Things technologies develop, countries and industries can either keep up or lose out, MEP Miriam Dalli says

MEP Miriam Dalli spoke about the Internet of Things and the automotive industry at the DELTA Summit today
MEP Miriam Dalli spoke about the Internet of Things and the automotive industry at the DELTA Summit today

The concept of mobility will change drastically over the next ten years, and, like the US, Asia and mainland Europe, Malta will experience this to, Miriam Dalli said.

As Internet of Things technologies develop, consumers would want electric and driverless cars, and carmakers and legislators had to respond positively to these demands, the Labour MEP said.

Dalli, who spoke about IoT and the automotive industry at the DELTA Summit on Friday, said that, with the rapidly developing pace of technology, the solutions for tomorrow were needed today.

“We need to think differently. We need to have a vision as to where we want to go,” Dalli said, as she described future road infrastructure as being based on vehicle-to-vehicle, vehicle-to-grid and vehicle-to-people connections.

Confronted with changing consumer requirements, both carmakers and lawmakers had to start doing things differently, she emphasised.

“Carmakers should move away from the business model of throwing billions in the powerful combustion engine, hoping to squeeze the last drops of the investments they have done in the past years,” Dalli said.

“Lawmakers should move away from the traditional way of thinking out solutions that fit in the framework of what we have been used to.”

Business as usual will not work, Dalli warned, and reluctancy to change will reap no results in the longer term.

Traditional model has to be broken

Integrating IoT into the automotive industry requires change, the MEP said, which meant that traditional industrial and business models will no longer work.

“This applies across the board not to the automotive industry alone,” she underscored.

“Although automotive firms will continue to make money by selling vehicles, other initiatives may be required to supplement their main business stream.”

She noted that companies had already embarked on such complementary initiatives, more so since it was expected that in the years to come consumers would increasingly opt for car sharing or ride-hailing models rather than buying a car.

A one-time opportunity

Technological advancements and IoT present a a one-time opportunity for the current generation, Dalli said.

“To ensure the maximum potential of this opportunity we require the right people, at the right place at the right time.”

“Countries, industries and businesses that do not keep up with the pace will lose out.”

She acknowledged, however, that opportunities brought with them challenges which had to be addressed.

“As cars become more connected they can be more vulnerable to hackers. Such situations need to be prevented,” Dalli highlighted.

“Connected vehicles will derive maximum benefit if they are intrinsically linked to the city.

“Connecting every car to every city will be a laborious task pushing the limits of our technological boundaries.

“But we require connected cars in connected cities and this can only be rolled out through national investments and visionary policies.”

Dalli added that there were also privacy concerns related to automotive IoT.

“Car manufacturers will control the data and consumers should have as much information as possible to make sure that automakers treat their data as they should. In the EU we have the GDPR that should protect consumers in cases of abuse,” she said.