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How is the future car company transforming the automotive industry?
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How will technology change the automotive industry?
- 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.
Feb 16, 2023 · Most major companies plan to roll out dozens of new electric vehicle models over the next decade, are implementing electric vehicle sales targets, and committing to eventually end fuel-powered vehicle production. 18 To achieve their electrification goals, automakers plan to invest billions of dollars over the next decade in research and developm...
- EVs. From General Motors CEO Mary Barra describing this year as an "inflection point" to nearly all major automakers announcing a pivot to electric vehicles, this year marked a significant shift in tone for the automotive industry and EVs.
- SPACs. Electric vehicle companies going public through special purpose acquisition companies, or SPACs, was a trend that started in late-2020 but accelerated in 2021.
- Vehicle inventories. Factory shutdowns starting last spring due to the coronavirus pandemic and occurring now due to a global shortage of semiconductor chips have caused the number of new vehicles available in the U.S. to reach record lows.
- Prices. The low supplies have led to record dealer profits as consumers are willing to pay more for a new vehicle. Some dealers also are adding markups, or "market adjustments," on high-demand products.
Jul 28, 2020 · Our global EV forecast is for a compound annual growth rate of 29 per cent achieved over the next ten years: Total EV sales growing from 2.5 million in 2020 to 11.2 million in 2025, then reaching 31.1 million by 2030. EVs would secure approximately 32 per cent of the total market share for new car sales (see figure 2).
Drivers that will shape the automotive industry over the next decade 06 The automotive value chain in 2025: four plausible scenarios 12 An OEM in the year 2025 20 Transformation paths towards the value chain of the future 38 Conclusion 61 Contacts 62
