Self-driving will accelerate
Companies will need to determine whether they can develop the technology to compete in this arena. If not, they may have to partner with a company that can better provide autonomous car technology. In addition, any companies hoping to be players in the self-driving market must consider the impact on supplier relationships and manufacturing operations, particularly what’s needed to make these cars available in blossoming global markets in emerging nations.
Electric vehicles will take off
This may offer an opportunity for automakers to meet increasingly strict CO2 emissions requirements and to provide an array of new consumer and fleet products.
Connectivity will expand
Connectivity, which is already having an impact, will expand to include a much wider range of features, such as car-to-X appliance communications. For instance, your home air conditioning system will automatically activate when you (and, more precisely, your car) are 20 minutes away. Automakers will have to build an ecosystem that includes partnerships with technology companies to develop connectivity features that stand out and attract consumers.
Profit pools will shift through new services
Traditional carmaker business models are commoditizing, and OEMs need to reexamine their sweet spot in the value chain to address shifting customer needs. This could involve moving from car ownership to pay-per-use and ride-sharing services. But before choosing to enter this market, vehicle manufacturers will have to understand the full costs of safety features, design innovations, and licensing rules in different global markets, as well as car-sharing overhead (parking, liability, and insurance) if they want to provide the services themselves.
Business models will become more local
Operating globally has become significantly more challenging and complex. Automakers must find ways to understand and navigate the regulatory policies wherever they sell their products and wherever they have manufacturing facilities and suppliers.