The automotive industry is in a state of flux as rapid change fuels the debate on how to identify future value. To help industry players understand looming changes, Deloitte has unveiled a new report, “Future of automotive mobility study to 2035.”
This study, authored by Sebastian Pfeifle, partner, Global Automotive Mobility Lead Consulting, and Jeff Paul, managing director, U.S. Auto Captive Finance Leader, offers quantitative and qualitative data from executive sessions and interviews, an international customer survey and a new profit pool simulation tool.
The study focuses on the U.S. and EUROPE5 regions (France, Germany, Italy, Spain and the United Kingdom), two of the largest automotive markets in the world, to examine the mobility value chain and the eleven shifts in profit pools expected in the coming decade. Despite the challenges that come with generational transformation, the report suggests that steady growth is forecast to almost double the size of the U.S. automotive mobility market by 2035, with the European market not far behind.
Mobility providers, from captive and non-captive leasing companies to rental companies and fleet management companies, will need revolutionary thinking to overcome uncertainty and ensure future success. The automotive mobility value chain is becoming increasingly important to providers, and the industry is constantly adapting to the disruptions that may become even more pronounced in the future.
The study provides six key findings for mobility providers to consider:
•They should position their company in the automotive mobility value chain today to help secure their future as an automotive mobility leader in 2035.
•They should master their asset management across the value chain and multiple vehicle lifecycles. Thirdly, they should focus on and invest in growth-oriented profit pools.
•They should develop and use mobility platforms and mobility budget offerings to sell their own and partner products.
•They should pursue decarbonization to meet the 1.5 degrees Celsius climate target.
•They should keep an eye on the medium- and long-term development of autonomous vehicles and fleets.
The study suggests that mobility providers may need to differentiate their short- and long-term growth strategies and identify their most promising profit pools that align with their strategic focus. Choosing the right areas in which to engage could help determine their future success and the role they might play in the future automotive mobility sector.
As change is coming, mobility providers must be ready to adapt to the rapidly changing consumer preferences, growing inequality, increasing polarization, urgent climate change, declining trust, and shifting geopolitical order. The industry must embrace fundamental changes to address new and shifting business challenges, drive industry players to develop a sustainability mindset and new skill sets, as well as technologies focused on a digital-first, customer-centric approach to business operations, which in turn can help create new data-driven revenue streams.
The full report can be downloaded here.
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