Disruptors Are Shaping Tomorrow's Auto Industry Today

Senior Editor, Autos

🎙️ Voice is AI-generated. Inconsistencies may occur.

Though the panic of the COVID-19 pandemic is firmly in the rearview mirror for most of the world, the effects of the virus on the automotive industry remain. Overcoming those challenges while continuing to evolve both practices and products are the themes of 2023.

This year's Auto Disruptors are moving full speed ahead on innovation, finding solutions to longstanding problems, using cutting-edge technology and pushing the limits of propulsion. They're also focusing on reducing, reusing and recycling to make their businesses more sustainable. And they are seeing the fruits of over a decade of planning in technology, sustainability and product innovation.

"The auto industry has shown its resiliency and willingness to evolve as it navigates out of the pandemic and continues toward electrification rollout amidst a looming recession," Paul Waatti, manager of industry analysis at AutoPacific, tells Newsweek. He adds, "Automakers are navigating lingering unforeseen supply issues while simultaneously preparing for new, more complex electric vehicle production. Add to that the new Inflation Reduction Act parameters that have set off a high-stakes chess match to secure raw materials, localize assembly of vehicles and batteries and align pricing accordingly."

EVs Go Mainstream

Electrified vehicles (EVs), from hybrids to plug-ins to battery-electric models, aren't just buzzwords anymore. In 2023, these vehicles are going mainstream, gathering more market share than ever, with new models designed to appeal to larger audiences.

Electric vehicle pricing is becoming a new battleground. Lori Wittman, president of retail solutions at Cox Automotive, says, "Tesla's price cuts disrupted the EV industry in a big way and have had a snowball effect on other major original equipment manufacturers that are being forced to cut their prices to stay competitive. All of this plays into our prediction that the industry will hit a new milestone in 2023 with 1 million EVs sold in the U.S."

FE Auto Disruptors INTRO — Courtesy of Ford Motor Company; Lucid Motors; Lamborghini; Toyota Motor Corporation; Genesis; Rolls-Royce Motor Cars

Experts say while higher end battery-electric vehicles like the Ford Mustang Mach-E, Mercedes-Benz EQS and Kia EV6 tend to gather the most enthusiasm, products like the Chevrolet Equinox EV and Kia Niro EV will influence buyers most moving forward.

Auto Pacific's Waatti says, "Most EVs are now in luxury spaces that appeal to affluent early adopters. The number of EV launches over the following year is significant, and incoming entrants like the more attainable Chevrolet Equinox EV, for example, will test consumers' broader appeal to adopt EVs at a mainstream level."

Consumers are buying new models, electrified or not, in new ways, thanks in large part to business changes that were in reaction to the COVID-19 pandemic. Digital interactions are taking the place of in-person opportunities.

Asymmetric Change

Car buyer deal-making has also changed. "My word of the year is 'asymmetry,'" says Tyson Jominy, vice president of automotive consulting at J.D. Power. "As the auto industry puts the COVID and supply chain crisis years behind it, the return to normal operations will vary widely between automakers and even within the portfolios of any given company."

"Consumers seeing advertisements for low APR rates on pickup trucks may return to the dealership expecting deals on other vehicles only to be surprised with prices and payments still reflective of low inventory," Jominy says. "Prices should gradually fall as production improves and consumers have more choices on dealer lots, but it won't happen all at once."

Jominy expects to see entry-level models come back in stock, like Honda's new CR-V SUV that starts at under $30,000. "Consumers should expect greater availability of lower priced vehicles with entry-level trims making a comeback or being reinstated," he says. "Fewer dealers will be able to charge above MSRP and automakers will add incentives back to deals. However, a decision that cannot be undone is restarting production of models that have been discontinued, particularly entry-level subcompact or compact cars."

The cars themselves are fundamentally changing as well. There is a larger focus on sustainability these days, even in internal combustion engine models. Disruptors on this front aren't just building greener cars, they're making the way they are built a greener process.

The Connected Future

New vehicles are more connected than ever before. 5G technology is being integrated into vehicles and parts are digitally connected to each other and to automakers. This allows for updates—for instance to increase battery range, install map updates or add customization options—to come by air while cars are parked for the night. These connectivity opportunities also allow business owners to track their fleets and better predict the behavior of their drivers and vehicles, minimizing downtime, costs and emissions.

Designers are optimizing aerodynamics to improve fuel economy and create vehicles that combine innovative design with engineering to achieve optimal battery range. And new product innovation isn't limited to fuel economy and electrification. Interiors feature less leather and more recycled materials and natural products, like cashmere and wool, on key surfaces.

Even as Newsweek announces this year's World's Greatest Auto Disruptors, competition is ramping up for 2024's honors. How the world's automakers handle the challenges of the coming months will determine next year's winners.

How We Did It

To determine the candidates for this year's World's Greatest Auto Disruptors, Newsweek's Autos team compiled a list of candidates, considering every major automaker, in each of the award categories. Brands, teams and individuals were nominated based on their cumulative merits for the past year by the Autos team, led by Newsweek's Senior Autos Editor Eileen Falkenberg-Hull, after combing through each candidate's accomplishments in the areas of technology, sustainability, research and development, business strategy, marketing, manufacturing, engineering and future product planning. To be considered, candidates had to be employing executive decision-making, corporate strategy, product development and publicity in a way that is driving fundamental, transformative change in the automotive market, with measurable real-world results—or have clear and demonstrable potential to do so. The Legacy award honors an individual who has achieved these results over decades in the industry. The list of nominees was narrowed by Autos editors, including Jake Lingeman. Winners were chosen after a consensus was reached amongst the Autos team and Newsweek top editors.