The automotive industry is going through a series of step changes. The rapid growth of megacities, the greying of Western societies, and new technological developments are presenting OEMs around the globe with a whole new set of challenges.
In light of volatile oil prices and climate change, new powertrain concepts are developing and gaining market share. Automotive manufacturers have emphasized the importance of achieving a dominant technology position to be ahead of competition and prepared for evolving customer demands. We believe the question is not if, but when, transformation will happen, and actually it has started already: internal combustion-based powertrain concepts are losing acceptance and regulation is setting harsh objectives.
Increasingly, new mobility business models are being accepted. Many players will struggle to adapt fast enough when reshaping their companies and securing their market positions and profit bases – or even need to find new ones.
We expect a change to the structure of the entire automotive industry. Today's players, as well as potential new entrants, will need to adjust to the new framework to achieve sustainable success.
At Arthur D. Little, we support and work with automotive manufacturers, suppliers and mobility providers to anticipate their relevant future challenges; innovate their products, business models and processes; and integrate them into their organizations.