The automotive industry is in a state of flux: the convergence of four megatrends – electrification, autonomous driving, connectivity and the sharing economy – is revolutionizing today’s automotive businesses. And while Original Equipment Manufacturers (OEMs) still dominate the automotive business, the game is changing. New players with customer-centric business models are entering the automotive space bringing with them a range of new mobility services that appeal to the changing needs of the customer.

In our latest research we found that by 2030, revenues from manufacturing and selling vehicles (around €2 trillion) will be only marginally higher than they are today, and that profits from car sales will even shrink slightly. By contrast, revenues from mobility services are projected to soar to almost €1.2 trillion—with profits reaching as much as €220 billion.

By 2030, revenues from mobility services are projected to soar to almost €1.2 trillion.

New business models

Automotive players are still in a good starting position to win the customer but will have to adopt new business models that enable them to strengthen their existing capabilities - developing new mobility services while managing their core business. Three things need to be considered:

Unlock new value to transform the core

Automotive OEMs will need to streamline and find efficiencies in their existing operations to generate new and sustainable revenue streams which can be invested in breaking into new ground.

Customer centricity

OEMs will need to learn how to manage and gain insights from data and offer new mobility services, to meet customer’s increasingly demanding expectations and create engaging customer experiences.

Ecosystem strategies

OEMs will need to look beyond relying on their own strength and a handful of suppliers - but creating "ecosystems" with other stakeholders, forming new partnerships and creating distribution channels.

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The service business opportunity

There is no doubt that there will be a lot of change, a lot of work, and uncertainty, but the future holds plenty of opportunities for automotive OEMs. Cooperation across the “ecosystems” can create considerable advantages and the right handling of data and customer experiences can not only strengthen customer loyalty - but also increase sales and margins. An important prerequisite for success is for companies to have a clear vision of their own future and a viable strategy to be competitive. Those that have both will thrive. The service business poses an opportunity and those who know how to master it will win.

Axel Schmidt

Senior Managing Director and Global Automotive Lead – Accenture

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