Pilakoutas: Exciting changes to the automotive sector anticipated in 2024

Its future and the course of its competitiveness will depend, to a large extent, on how the automotive industry handles international challenges, the CEO of the Char. Pilakoutas Group, Charalambos Pilakoutas suggests.

Speaking to InBusinessNews as part of its IN Business Forecasting 2024 series, Pilakoutas expresses his assessment that in the new year, the penetration of electric and hybrid cars within the market will increase significantly, especially as their ranges improve and the availability of charging points expands.

The connection of vehicles with the internet is also anticipated to expand along with the integration of the IoT (Internet of Things) and the adoption of 5G technology, achieving the next important step in the direction of autonomous driving.

According to Pilakoutas, among the important commercial announcements expected is the new BMW 7 Series, which will support Level 3 automated driving, and which will initially be available to the brand's customers in Germany.

Referring to the resilience of the auto market amid intense volatility and demanding challenges, the CEO of Char. Pilakoutas Group explains that the state can support the industry by offering incentives that will stimulate its operations.

The goal for 2024 is to further strengthen the group's competitive advantage, its differentiation through the selection of the extensive range of nine brands it represents and the services offered, while in the next year, exciting new proposals are expected that set new standards in their categories.

How do you perceive the economic environment shaping up in 2024, in light of inflationary pressures, high interest rates and unpredictable ever-changing geopolitical developments?

In the wider context of intense international volatility, it is risky to make safe estimates. However, according to the available data, the economic environment for 2024 is expected to be fluid and uncertain.

International inflationary pressures, high interest rates and unpredictable geopolitical developments constitute a set of significant challenges that may affect global economic growth.

Therefore, prudence and adjustment with careful actions are required, in order to mitigate any effects in our own country.

Local and international challenges for the economy

What do you consider to be the biggest and most difficult challenges that the Cypriot economy will have to face?

Based on the previous answer, of course the pressure of inflation, high interest rates and the uncertainty of geopolitical developments are international challenges that directly affect Cyprus as well.

In addition, however, there are areas that are significant local challenges for our economy. These, among others, are:

The acceleration of the digital transformation of the state and the business sector, the integration of innovation into business operations, the expansion of inclusion and the need for new reforms that will further enhance the productivity, resilience and competitiveness of the economy.

Addressing these challenges, which must be done in a sustainable manner, will require a coordinated effort from the state, businesses and society.

Would you say that, taking into account the latest upgrades, the economy of Cyprus it is now well on its way to growth?

The reality is that the Cypriot economy has demonstrated a long-term resilience, which was also recognised by the international rating agency Fitch during its latest upgrade.

The evidence therefore suggests that the Cypriot economy is on a growth path. But this, within the general environment of challenges that we described earlier, should in no way lead to complacency.

Everything around us is fluid. It requires realism and continuous effort to provide our own answers to the economic and development challenges we face as a country. Something that, in my opinion, can be done through the implementation of the Cyprus Vision 2035 and the necessary convergence of the state, the business sector and society.

Penetration of electric-hybrids and autonomous driving

What do you think will be the course of the sector in which you operate in 2024?

The automotive industry is expected to face another year of challenges in 2024, due to those factors that disrupt the supply chain, but also more broadly the global economy: Inflation, interest rates, energy, geopolitical tensions.

However, within this environment, a significant increase in the sales of electric hybrid vehicles is expected internationally, which reflects the increasingly greater environmental sensitivity of states and consumers and the effort to deal with climate change.

At the same time, continuous development in the sector, as reflected in the many new models that will be presented next year, creates new attractive proposals for consumers that cover every need and every financial possibility.

What are the biggest industry trends/changes you anticipate in 2024?

The automotive sector is one of the fastest growing sectors of global industrial activity. This is of course due to the rapid development of technology that has catalysed a change - for the better - not only in road safety, behaviour, aesthetics, consumption and performance, but also in the interaction of the driver and passengers with the car itself.

So in 2024, it is initially estimated that the penetration of electric and hybrid cars will increase significantly, especially as charging points expand and their ranges improve.

The interconnection of vehicles with the internet is also expected to expand along with their integration of the IoT (Internet of Things), in and by the adoption of 5G technology. This in turn, together with the development of new algorithms, will allow the next major step in the direction of autonomous driving to be taken. Here, leading manufacturers such as BMW are already preparing for exciting commercial announcements.

We already know for example that the new BMW 7 Series will support Level 3 automated driving which will initially be available to the brand's customers in Germany. With this technology, the vehicle completely takes over the driving process, day and night, while the driver can do other activities.

Some other aspects of changes estimated to take place in 2024 are: An even greater personalised driving experience and enhanced driving safety, which will be achieved by the adoption of artificial intelligence and machine learning technologies.

In addition, car manufacturers will further improve the sustainable footprint of their production by using new eco-friendly materials, while we look forward to the next steps in the transition to more sustainable fuels with a positive environmental impact.

Overall, automotive industry trends in 2024 are taking shape within a landscape of technological innovation, sustainability and evolving consumer preferences. The changes will be exciting and we look forward to them.

Addressing challenges determines competitiveness

What are the most important problems that are currently plaguing your sector and the solution of which is considered by you to be a priority in view of the new year?

Today, internationally, the automotive industry is facing a series of challenges, the most important of which are the following:

• The ongoing disruption in the global supply chain which, although steps have been taken to improve, is still causing difficulties in production and delivery processes.
• The increase in energy and raw material prices has affected production costs.
• The intensifying transition to electrification is forcing car manufacturers to invest significant funds in the development and evolution of electric vehicles.
• The evolution of internal combustion engines, so that they are able to use the new biofuels efficiently, meeting the environmental requirements.

The course of the industry and, of course, its competitiveness will depend, to a large extent, on dealing with these challenges.

How the state will support the car market

If you could ask the Government to take specific measures or formulate policies to support/strengthen your sector, what would they be?

The automotive industry in Cyprus is recognised as a significant contributor to employment and public revenue.

Despite the economic uncertainty and global supply chain disruption of recent years, the industry has shown strong resilience, as reflected in sales figures.

In an environment of intense volatility and demanding challenges, the state can support the sector by offering incentives that will stimulate its operations. An effective policy could include:

• Incentive package for the withdrawal of old polluting vehicles. This will help improve air quality and road safety.
• Higher specification limits for the import of used cars. Something that will help increase safety and reduce pollution.
• Incentive framework for the purchase of electric cars. The expansion of electrification is necessary in a more sustainable direction and to achieve national environmental goals.

The Group's new proposals set new standards

What are your organisation's plans/strategy for 2024? Should we expect new products/services/developments and your further establishment in the market? Will it be a year of growth/expansion or maintaining your existing market position? Can you tell us about any of your plans in particular?

At Pilakouta Group, we systematically research and study the Cypriot car market, in order to draw up our strategy and carefully prepare our next steps.

The fourth generation of the Pilakoutas family, Kodros, Klelia and Stalo, now actively participates. Together with all of our human resources, we believe that every challenge includes development opportunities, possibilities to become better. Always focusing on reliability and the relationship of trust we create with our customers.

In 2024, we seek to further strengthen the Group's competitive advantage, its differentiation through the choices of the extensive range of the nine brands we represent and the services offered to our customers. In the coming year, we expect exciting new proposals that set new standards in their categories.

Among other things, for all these models, as for all the rest, the Pilakouta Group network is constantly evolving its technological infrastructure, specialised technical training and support systems, so that our customers can feel confidence and trust at all times.

What role does technology, such as artificial intelligence, play and what changes is it expected to bring about in your field?

In the previous question about trends in 2024, I mentioned some important changes that the evolution of technology will bring to cars. Artificial intelligence (AI) in particular, with its rapid development and increasing application, will play an increasingly important role in the automotive industry. It is already used in driver assistance systems, digital displays and connectivity systems.

At a future level, artificial intelligence is expected to bring about significant changes in the development and use of autonomous cars, improving safety and reducing the cost of movement and maintenance, for example through energy savings.

In addition, artificial intelligence can be used to optimize car production, reducing production costs and time, and will help accelerate the research and development of new technologies and new services, such as shared and subscription mobility.

Intelligent technology has the potential to change not only the way cars are built, driven and used. It has the potential to change the relationship between man and the car, which will now be something much more than a simple transportation vehicle. It will be the extension of a world of exciting experiences.

(Source: InBusinessNews)