Sustainable Business Models: The Case of the Automotive Industry

Sustainable Business Models: The Case of the Automotive Industry

Sustainable Business Models: The Case of the Automotive Industry

The continuous debate between business and sustainability has become one of the central focus in terms of enhancing the face of our future and of the world’s. Transformative processes undergone by extreme industrialisation have taken their toll on the environment. Thus, leading to another revolutionary shift aligned with the practises that protect the depreciating health of the planet.


The prevailing traditional linear business system that does not meet the adequate ways aligned with sustainability is a major setback in instigating a healthier planet in the near and far future. Resource efficiency improvements is a resolution to giving poor countries the chance to a higher standard of living in contrast to their current situation. Redesigning business models according to the requirements of sustainability will welcome beneficial changes that will be fundamental in the future.

A sustainable product can not be produced by an unsustainable linear industry. Only by facing out the old traditional ways then structure a new sustainable one, is the only sure-fire way to resolve the environmental adversities. The effort of designing sustainable business solutions is a challenge to companies that are set on their ways and drastically shift or absorb new strategies and technologies. The sustainable business solutions for the car industry does not depend on the technological aspects present or the gradual reconfiguration of the product value chain. Rather, social challenges and environmental issues became the highlight of the transformation.


The Essence of Environmental Thinking in the Automotive Sector

Embedding the context of sustainability in all business models is an adversity every industry faces in these demanding times. The growing realisation of consumers due to the availability of information on the internet and businesses wanting to align their marketing strategies on consumer behaviour, such started a robust long-term goal for the world. Good example might be recent popularity of seat covers like those:


Being business a part of the civil society, it tied up with the political, cultural, local, and international evolution. In such a matter, business, having to encompass a broad network in globalisation, corporate social responsibility, business ethics, and product stewardship will become status quos in the business operations in the future.

Interconnection Between Product, Process, and Economic Structure

From materials to the transforming processes of the materials are involved in the manufacturing operations. This process is linear. The company projecting how they make the vehicle, what the vehicle is made of, and their edge against competitors, but, on another note, how the product is used exhibits a sustainable practice.


The production process of the vehicle manufacturers involves manufacturing the core products and assembling all the other components. 99% of the car industry covers the all-steel body of the auto, the internal combustion engine, and the technical systems embedded in the vehicle. Thus, the manufacturing stage measures the sustainability of the car industry.


On the input side, extended networks influence the chain, while on the output side, the distribution networks make most of the contribution. Although sustainable practices can be feasible, the cost is one major problem when it comes to shifting into sustainability. Reshaping the industry means changing everything including types of machinery, materials, and freight operations. It’s hard work.


The sales and marketing tactics of the automotive industry include independent franchise dealerships to tap the right people and gain profits. Lowering the real price and cost reduction are the results of the competitive market. Revenues will continue to grow as sales continue to grow.