The automotive industry has witnessed several exciting avenues over the past few years, notably in developing regions that have been source of new revenue streams. Variety of consumer connectivity services and share mobility trends have been shaping new ecosystem in the automotive sector. The ‘connected car’ and emerging business models on shared mobility in transportation have been harbinger of game-changing developments in the sector. The changing consumer mobility behavior in fast-developing markets such as India and China has been engendered by macroeconomic factors and changing government regulatory frameworks.
Manufacturers in the automotive sectors struggle to contain production costs and bring down emissions substantially. Most consider inking partnerships and deals to transition to new mobility ecosystems, mostly pertaining to development of autonomous vehicles and electrification of vehicles. Stakeholders are exploring lucrative prospects in connected vehicles. However, the strategy of OEMs to put the cost burden on consumers may not pay off, unless they are aware about the role connected cars have on their safety. On the other recent spate of accidents associated with the trials of autonomous vehicles, thus making trials difficult especially in public areas. Declining consumer trust in Germany and the U.S. have made the shift toward autonomous vehicles difficult. Meanwhile, consumer in China and India are seen more receptive of autonomous vehicles if they have been certified by regulatory agencies. In coming years, new mobility models will unlock new prospects for automakers, service providers, and consumers. The recent popularity of ride-hailing services is a case in point.
Urban consumers are increasingly attracted toward on-demand mobility solutions, leading to a decline in private use vehicles. On the other hand, experts don’t yet see attractive growth in multimodal mobility. Such trends have been crucial force in shaping new contours of the automotive markets around the world. Advent of advanced driver-assistance systems has stimulated a new shift in regulatory policies of key markets. As consumers see tremendous potential in self-driving cars, prominent automakers are seeing an incredible potential in coming years. Another area that has opened new avenue for vehicle manufacturers is electrification of vehicles, most notably in passenger vehicles used for public transportation. Stakeholders have also been putting substantial dollars for developing battery technologies for hybrid vehicles. Moreover, the demand of consumers to meet new powertrain technologies will stir the popularity of electric vehicles. The automotive sector has also seen the entry of numerous large technology players, which will pave way for new shifts in infotainment, safety, and connectivity.