An industry undergoing major change
After more than a century, the automobile industry is experiencing an unprecedented challenge. The entire ecosystem - from manufacturers and OEMs, to rental services, finance companies, and dealers - is facing a convergence of technological, social, political and economic forces. The challenge is no longer to understand if car design, selling and usage will evolve but how fast that change will occur?
A broader competitive landscape
The development of vehicle connectivity and self-driving cars has attracted new competitors, with no previous involvement in the sector. These are companies with deep pockets who are investing heavily in R&D in fields that are transversal to many industries and which impact the automobile sector: AI, AR, big data, IoT... In terms of innovation, they have already won the image battle. They could win the customer battle, with their simple interfaces and closed systems. Are manufacturers condemned to make boxes on wheels under generic brands?
Manufacturers’ responses will not only be based on technological choices, but also on the viability of entirely new business models. As a result, competition in the automotive sector has become multidimensional because of a progression from the simple sale of cars to the sale of mobility services.
A fundamental change in the way we consume mobility
Digital and mobile technology, urban lifestyles, the cost of energy, and environmental concerns have led to profound changes in consumer behaviour. The permeability of consumer expectations, in particular for "on demand" services will inevitably spread through the automotive sector. Buying a vehicle has become optional and is being abandoned in favour of shared mobility platforms and alternative modes of transport. Mobility is thought of as a service. The whole car concept needs to be reworked to satisfy new purchase criteria. Vehicles are becoming entertainment and communication platforms: living spaces, where passenger’s needs are taken into account.
A new set of challenges
Congested cities make the movement of vehicles more difficult, to the point that motorists are penalized. Environmental standards are becoming increasingly strict. Electric vehicles enjoy only very limited success, suggesting that existing technologies, offering limited autonomy, could be replaced by other solutions in the coming years.
Change is here. It is impacting activities across the automotive industry, all of which need to adapt their business model, their offerings, their customer relationships and their organization. We help companies in the sector to put the customer at the heart of their growth strategies, supporting them in understanding new consumer requirements and behaviour, and working with them to invent new ways to sell vehicles efficiently and offer mobility services, by redesigning their offer and the customer experience.
- Innovating and offering new products and services in line with new usage trends, to increase loyalty and the brand’s attractiveness in the eyes of users and to remain competitive.
- Redefining a simple, distinctive omnichannel customer experience
- Aggregating all the collected data for a 360° view of the customer
- Taking advantage of new technologies such as connected vehicles and keeping ahead of new competitors
- Working with new entrants and building strategic partnerships with a view to rethinking management of the value chain
- Adapting to new transport infrastructures, and understanding the issues in the battle between pedestrians, cyclists and motor vehicles
We combine our set of expertise
Only a personalized combination of our expertise across a range of fields can help you to meet these difficult challenges.