The automotive industry has become more and more innovative throughout the last decade. On the face of things, we are seeing smart new digital and engineering technology being integrated into the products being developed. Look a little deeper, however, and it is clear that innovation is taking place in every area of the industry, and one particular aspect of this innovation is RFID technology.


 RFID is an advanced tagging technology that allows companies to keep track of items and products that are used in manufacturing and retail. The technology works along similar lines to bar codes: individual items are tagged with an electromagnetic chip, and then their location can be monitored using specific RFIDsoftware.


This technology is being used widely in the automotive industry to increase performance and efficiency, and also as a way to enhance health and safety protocols and bolster security. Globalization has led to increased competition in the automotive industry, with countries such as China looking for a slice of the action, and so manufacturers will use any method possible to get ahead of the game. What follows is an overview of how they are using RFID to help them compete at a higher level.