Automotive trends 2019

The auto industry must find a way to balance accelerating innovation and financial survival, part of PwC’s 22nd CEO Survey trends series

Revolutionary change is coming—the only question is when.

Even after billions of dollars of investment, the vision for connected, autonomous, shared and electric (CASE) mobility has not been fully realized—yet. But it is coming, and it will completely reshape the industry. The challenge for automakers is to prepare for radical new business models without losing sight of realistic, short-term goals. Adaptability will be key, as fully embracing CASE vehicles will require automakers to rethink relationships, their workforce and their operations. 

"To be sure, CASE mobility will ultimately remake the auto industry. No one doubts that."

Source: Automotive Trends 2019, part of PwC's 22nd CEO Survey trend series

Automakers must manage to a future that has yet to be defined.

Embrace specialisation

Automakers will not be able to be all things to all consumers. Successful auto companies will need to:

  • Focus on particular types of vehicles or excel at narrower value chain roles
  • Analyse their organisations’ skills, assets, scale and financial condition
  • Develop a reasoned, comprehensive view of where they can best compete

View more

Focus your value proposition

After they determine where they can best compete, automakers will need to:

  • Calculate the required investments and potential payoffs of their chosen paths
  • Identify the risks and flexibility needed to follow this course
  • Decide if they are fast followers or innovation leaders

 

View more

Manage costs zealously

Returns will be slim and competition fierce. The key to survival will require automakers to:

  • Spend strategically
  • Invest only in the critical capabilities required to deliver on their strategy

View more

Don’t do it all yourself

Automakers will need to share in the cost of innovation. They may:

  • Partner, consolidate and outsource across the industry
  • Divide up wide-ranging portfolios among OEMs
  • Outsource capital-intensive parts and component development

View more

Strategy made real

Although the path ahead is unclear, one thing is certain: automakers and suppliers will need to ready their operations for profound change. The best way forward? Focus on how factories will evolve while carefully managing costs and operations through this period of upheaval.

Read the article on Strategy&

 

 

Contact us

Felix Kuhnert

Global Automotive Leader, Partner, PwC Germany

Tel: +49-7112-5034-3309

Rich Parkin

Industrial and Automotive Industries Partner, PwC United Kingdom

Tel: +44-7900-163-731

Akshay Singh

Industrial and Automotive Industries Principal, PwC United States

Tel: +1-216-875-3491

Reid Wilk

Industrial and Automotive Industries Principal, PwC United States

Tel: +1-313-394-3829

Andrew Higashi

Industrial and Automotive Industries Director, PwC United States

Tel: +1-808-772-0133

Follow us