Connected, shared, electric, and autonomous technologies are expected to be the dominant factors of innovation within the automotive industry this year, according to recent findings from Frost & Sullivan.
In their Global Automotive Industry Outlook 2019, they see the global automotive industry entering a challenging phase due to the new NAFTA, U.S.-China trade wars, and Brexit. But shared mobility and “innovative” mobility streams, in addition to EVs and autonomous tech, are trending towards a period of prosperity.
“Electric mobility options will continue to rise in popularity, especially electric ride-sharing and micro-mobility solutions, in developed markets,” said Viroop Narla Team Leader, Business Strategy, Mobility. “As the number of mobility services surge in 2019, OEMs and other industry participants will look to harness the data for more optimized sales and after-sales solutions.”
Narla said EV growth will continue to increase due to new model launches and stringent government regulations. China is anticipated to be the largest market for EVs (or ZEVs), followed by Africa, the Middle East, Latin America, and South Asia, thanks to local government incentives and subsidies for both OEMs and car buyers.
OEMs will need to focus on integrating digital technologies; offer alternative forms of vehicle ownership; develop connected, electrified, autonomous, and modular vehicle; focus on business models like Mobility-as-a-Service (SaaS), subscriptions, or new financing methods; and invest in regional capacity and expertise, said Frost and Sullivan.
This will provide them with more growth opportunities, although it is not fully clear how this transitional or experimental period will impact dealerships.
