The concept of what a car is for is drastically changing. The convergence of four megatrends electrification, autonomous driving, connectivity and the sharing economy is revolutionizing today’s automotive businesses. Each one of these trends is powerful on its own, but the combination of all four is profoundly disruptive and creating the need for change.
Today, OEMs dominate the auto business with very high barriers to entry: They engineer, build and sell mechanical vehicles, leveraging their mass production prowess and extensive distribution networks.
But the game is changing—new players with customer-centric business models are entering the automotive space. Customers’ mobility needs and expectations, shaped by experiences in other industries, are soaring.
Automotive players still are in a good starting position to win the customer, but they must act now, reinventing themselves in 3 key dimensions: agility to compete, customer-centricity and new business models.