What do manufacturers need to do now?

Traditional OEMs need to evolve, following different steps along the entire value chain to stay competitive and effectively ride the wave of the electrification revolution. In particular, OEMs will need to focus on a number of key areas to stay competitive and manage in the era of the electric engine—from engineering to manufacturing to recycling.

1 Engineering
1 Engineering
Define a clear technology evolution strategy, redesigning products to stimulate component behavior such as long-term battery performance. X
2 In-car Software
2 In-car Software
Rethink vehicle information communications technology architecture to enable efficient battery and e-engine management while integrating new services. X
3 Supply Chain and Purchasing
3 Supply Chain and Purchasing
Engage in more collaborative Tier 1 thinking to create a new supply chain, ensuring access to new technologies that can help create full supply chain visibility and transparency. X
6 Sales and Mobility Services
6 Sales and Mobility Services
Introduce innovative mobility services to offer customers alternatives to buying, such as sharing or subscription models. X
5 Marketing
5 Marketing
Provide clear information around EV products and services, and develop new sales options. Redesign the customer journey to enhance EV-specific touchpoints. X
4 Manufacturing
4 Manufacturing
Take advantage of new digitized manufacturing solutions and simulation technologies to design flexible assembly lines and transform the workforce. X
7 Connected Vehicle Services
7 Connected Vehicle Services
Use vehicle and customer data and collaborate with partners to provide innovative and profitable e-digital services. X
8 Aftersales
8 Aftersales
Re-evaluate OEM capabilities to manage new EV and dedicated components such as batteries effectively while offering new e-services. X
9 Recycling
9 Recycling
Take advantage of discarded batteries, and partner with external players to manage e-vehicles’ environmental impact, opening new revenue streams. X

The electric vehicle revolution is upon us, and any uncertainty over whether EVs will enter the global mainstream market is over. The only uncertainty now is over what role manufacturers will play in this revolution. There is no sure recipe for success. However, by properly reading the market signals and by acting quickly, OEMs can prepare for and help design the electric revolution.

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