Strategic Recommendations for Legacy Automakers in the Evolving Automotive Landscape

Abstract

The automotive industry is undergoing a transformative shift with technological advancements in many areas such as Electric cars, Autonomous vehicles, Software Defined Vehicles, and decarbonization of mobility. Alternate means of transportation are also becoming available and sometimes even the cost is even lower than owning a car. The best way to get from point A to point B might not be the car in some of the cities. It might involve heterogenous modes of public transportation, using a bike, using ride hailing service or using a car for different portions of the route. Despite the concerns about the environment, we are still seeing an increase in global car ownership trends. These changing times pose challenges to legacy automakers. While they are experts in traditional car manufacturing, modern cars not only require traditional mechanical and electrical skills but also need deep expertise in developing software for these cars. With the growing EV adoption, we are seeing Chinese EV automakers are capturing market share quickly. What is the future of mobility with all these developments? What do traditional automakers need to do in this era to remain successful? In this report we will examine key trends in mobility: Global electric vehicles (EVs) adoption, software-defined vehicles (SDVs), autonomous vehicles (AVs), environmental implications. Based on this research we will propose strategic recommendations for traditional automakers in order to continue their success over the next decade and beyond.