MANAGEMENT IN CONDITIONS OF RAPID INNOVATIONS AND EXTERNAL FACTORS IN THE AUTOMOTIVE INDUSTRY

Abstract

The work examines the main trends in the development of the automotive industry, examines the influence of external factors that can significantly change the direction of work and the development of this industry on a global scale. An analysis of the main market leaders and products that occupy the leading positions on different continents in terms of volume, popularity and priority was carried out. Based on the results of the analysis, recommendations have been developed that will contribute to the development of the automotive industry, in order to stabilize the processes in the direction of a positive impact on the world GDP level. Today, the automotive industry is moving with modern trends in the direction of environmental protection, that is, the creation of electric cars, which requires the replacement of engines that ensure the absence of exhaust gases, the use of fewer parts for easier maintenance, the construction of factories according to the latest requirements and parameters that require large costs. The innovative processes taking place in this industry are changing at a rapid pace, as a result of which there may be negative consequences not only for the automobile industry, but also for the whole world, that is, the impact will first of all go to the economies of countries, and most of all to those countries in which the economy mainly depends from the automobile industry. As stated in the work, the automotive industry was greatly affected by an external factor – the Covid-19 pandemic, as a result of which manufacturers were forced to reduce their production capacity several times, rapidly start recovery and create new directions of production, which remained stable until 2022. The current year has had an impact on all spheres of life in most countries of the world, automotive industry was no exception. Due to Russia's invasion of the sovereign territories of Ukraine, car manufacturers expressed their position regarding Russia's invasion by deciding to leave the Russian market. There were also problems with the logistics sphere, which created problems with the delivery of parts for most cars from China, etc. However, with a correct response to external challenges, it is expected that the automotive industry will suffer less from the influence of negative trends on a global scale.