After decades of making vehicles safer, more luxurious, and more efficient to produce, the innovation landscape is shifting. Autonomous vehicles, BEV’s, connectivity, and sharing are reinventing the way drivers (and soon users) interact with vehicles. At the same time, new business models and changing consumer habits are stretching the entire ecosystem, including fuel and insurance providers, dealerships, and even regulators. Regardless of what’s next, one thing is clear: It won’t be about the next new vehicle. It will be about reinventing the automotive ecosystem.
Future Focused Initiatives
Dealership Reinvention
As Tesla and other new entrants have shown, the car lot of the future might operate more like an Apple Store, where customers can touch, test drive, and get their questions answered while a limited inventory is kept on-hand. Brands will need to decide if they should emulate this model or find another path.
Connected Car Vision
With connectivity becoming the norm, vehicles will be the next battleground to vie for people’s digital attention, opening avenues for expansion. Now is the time to invest in new revenue streams through offerings like aftermarket upgrades, infotainment systems, fleet management solutions, and cloud-based telematics.
Business Model Reinvention
Companies have been experimenting with subscription services to get people from point A to point B, but no one’s gotten it right. To succeed in the next decade, we need to reinvent the entire ecosystem, from shopping and acquiring vehicles to using and servicing them.
