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- Driven by shared mobility, connectivity services, and feature upgrades, new business models could expand automotive revenue pools by about 30 percent, adding up to $1.5 trillion.
- Despite a shift toward shared mobility, vehicle unit sales will continue to grow, but likely at a lower rate of about 2 percent per year.
- Consumer mobility behavior is changing, leading to up to one out of ten cars sold in 2030 potentially being a shared vehicle and the subsequent rise of a market for fit-for-purpose mobility solutions.
- City type will replace country or region as the most relevant segmentation dimension that determines mobility behavior and, thus, the speed and scope of the automotive revolution.
- Radically Focus Online
- Shift to Recurring Revenue Streams
- Optimize Asset Deployment Through Strategic Partnerships
- Embrace Zero-Based Income Statements
- Build Resilience Into The Supply Chain
- Establish A Strong Decision-Making Cadence
Right now, more consumers than ever are using online sales channels to engage with businesses in every industry. According to a recent McKinsey digital sentiment analysis, in Europe, the use of digital channels has increased by an average of 13 percentage points (Exhibit 1). Growth in online channels is high for every country surveyed, but the bigg...
Between February and March 2020, major stock indexes dropped by almost 40 percent, with the drop affecting nearly all industries and markets. Noncyclical stocks reacted with far less volatility, however, and some even grew in value. In times when cash is scarce and uncertainty about the future abounds, customers often hesitate to make large up-fron...
Investments in autonomous technologies, connectivity, electrification, and shared mobility (ACES) are a challenge for automotive OEMs and suppliers alike. Given the significant resources required and the need to deliver these solutions now, it makes sense for industry players to work together instead of competing alone. After all, the limited resou...
The pandemic has devastated auto-industry growth. According to the latest estimates, global car sales will decline between 20 and 30 percent in 2020. Moreover, depending on the region, it may take up to four years to recover to pre-COVID-19 levels. While plants remain shut down, many people are in short-term jobs or working from home due to pandemi...
The early weeks of the COVID-19 pandemic revealed how complex yet fragile global supply chains have become. Already in February, before the outbreak arrived in Europe and the United States, a supply-induced shock caused production interruptions at many tier-one suppliers, as critical parts from China went missing. The increasing dependence on singl...
Experience suggests that company transformations often fail to gain the necessary traction and rigor for successful execution and implementation. Yet to thrive in the industry’s “next normal,” excelling in these dimensions is key. Three principles can maximize a company’s chance of success. Fast decision making lays the foundation.When comparing th...
May 9, 2023 · McKinsey Themes. The future of the car. May 9, 2023 Over the past 20 years, the automotive sector has navigated a wave of disruptions; in the next decade, changes will come faster than ever—and with greater force and impact, write Kevin Laczkowski, Amuche Okeke-Agba, Andy Voelker, and Brooke Weddle in a new article.
May 5, 2021 · May 5, 2021,11:50am EDT. Share to Facebook. Share to Twitter. Share to Linkedin. The automotive industry is racing toward a new world, driven by sustainability and changing consumer behavior,...
- SAP Guest
- Joaquin Naval
- Writer
- Futuristic Looks. Many car manufacturers have been continuously changing the game, from minor facelifts every now and then, to completely revamping the design language that they implement in their lineups.
- Better Range And Efficiency. Electric vehicle companies are developing more advanced technologies that seek to improve the overall efficiencies of their batteries.
- The Ability To Carry More. Cargo space is a very important aspect when it comes to choosing a practical vehicle, essentially telling you just how much luggage you're capable of bringing in.
- Stronger Batteries, Improving Longevity. The batteries that power the electric vehicles in the industry are no different from conventional batteries. They still need the necessary care and concern, especially if we want them to last.
Jan 18, 2023 · With the ESG trend shining a light on processes and facilities the world over, the automotive industry is keen to keep its nose clean and keep its investors happy. Technology will likely play a central role in helping car companies monitor their supply chains and adapt to major disruptions.
Jan 3, 2020 · In order to align with the Industry 4.0 paradigm and take advantage of turbulent times in the automotive sector, company boards and senior executives should be considering the following key questions. Which advanced innovations will impact the auto industry the most over the next decade?
