Transform the way cars are made, used and sold in a connected world.
Transform the way cars are made, used and sold in a connected world.
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- The future of the automotive industry
Over the past few years, automakers and everyone in the automotive ecosystem—from component makers to design engineers, marketing and finance directors, to investors, dealers, and customers—have faced enormous Variety.
Automakers' future success will depend on their ability to adapt to new conditionsFive categoriesChanges in strategic responses and changes in business and operating models are required.
signal of change
- How cars work.The shift to electric powertrains has traditional internal combustion engine (ICE) automakers frantically pursuing electric vehicle (EV) strategies and facing new competitors.
- How cars are made.The transition to electric vehicles requires new ways of building cars -- using entirely different components and technologies.
- How the car is used.New ownership and usage models, such as ride-hailing, ride-sharing and subscriptions, are gaining popularity, with vehicles used on an as-a-service basis.
- How cars are sold.Consumers have been buying cars online for years. Now they also want to do all other vehicle-related transactions online.
- How the industry is regulated.Changes in rules and regulations are critical to the transition to electric vehicles. Countries and states have set deadlines to end ICE vehicle sales.
In the Future of the Car report, KPMG experts examine how these changes are creating eight strategic imperatives. To meet these strategic imperatives, KPMG believes businesses need to become “connected businesses” – leveraging data and digital technologies to improve operational efficiency, develop innovative products, connect with customers and suppliers, make rapid and confident decisions and empower employees to be successful. tool.
strategy
imperative sentence
Rethink production, supply chain and partnerships
- As cars become "computers on wheels," the value of digital design and software increases.
- Production is modular, with less in-house production and more focus on design and assembly.
- The shift to electric vehicles and supply chain challenges are rethinking the manufacturing footprint.
Organizational transition to electric vehicles
- Electric vehicles and internal combustion engine vehicles have different requirements.
- Automakers separate EVs, ICEs, and commercial companies.
- Joint ventures are also emerging to share the development costs of electric vehicles.
Make money on your connected vehicle
- Connected car services provide a revenue stream for OEMs.
- Automakers can strengthen customer relationships with infotainment systems.
- B2B revenue from fleet management technology, tax and expense management, and software upgrades is possible.
Create models as a service
- Subscription models are expected to grow rapidly, offering a variety of options including time- or mileage-based pricing, insurance and maintenance.
- OEMs offer ride-sharing and/or mobility subscriptions, while some owners may be able to lease their vehicles to public ride-sharing services.
- New players in mobility create opportunities for competition and cooperation.
Create a seamless dropshipping experience
- Customers buy directly from the original equipment manufacturer, and the vehicle is provided by the dealer.
- The recent consolidation in the US has seen an increase in the number of brand-independent digital mega-resellers.
- The transition from a traditional dealership model to a direct sales model is a major operational and cultural change.
Using data to increase long-term customer value
- After-sales service improves customer experience, and remote services such as maintenance and spare parts are delivered to the door or to the center.
- 3D printing can deliver parts faster and closer to customers.
- OEMs may own all aftermarket experience or outsource it to third parties.
working capital
- Growing financing needs create opportunities for the development of captive finance companies.
- Financing remains a source of revenue for dealers and OEMs as they sell more vehicles directly and become a one-stop shop for vehicles.
- Fleet management, vehicle insurance, extended warranties and payment processing offer additional revenue opportunities.
Attract talent into the industry
- Automakers are struggling to attract and retain talent to design and build connected electric vehicles.
- Some OEMs have opened R&D and design shops in Silicon Valley to recruit technical leaders.
- The industry needs to adopt Silicon Valley methods and ways of working, with shorter hours and better employee benefits.
Rethink production, supply chain and partnerships
- As cars become "computers on wheels," the value of digital design and software increases.
- Production is modular, with less in-house production and more focus on design and assembly.
- The shift to electric vehicles and supply chain challenges are rethinking the manufacturing footprint.
Organizational transition to electric vehicles
- Electric vehicles and internal combustion engine vehicles have different requirements.
- Automakers separate EVs, ICEs, and commercial companies.
- Joint ventures are also emerging to share the development costs of electric vehicles.
Make money on your connected vehicle
- Connected car services provide a revenue stream for OEMs.
- Automakers can strengthen customer relationships with infotainment systems.
- B2B revenue from fleet management technology, tax and expense management, and software upgrades is possible.
Create models as a service
- Subscription models are expected to grow rapidly, offering a variety of options including time- or mileage-based pricing, insurance and maintenance.
- OEMs offer ride-sharing and/or mobility subscriptions, while some owners may be able to lease their vehicles to public ride-sharing services.
- New players in mobility create opportunities for competition and cooperation.
Create a seamless dropshipping experience
- Customers buy directly from the original equipment manufacturer, and the vehicle is provided by the dealer.
- The recent consolidation in the US has seen an increase in the number of brand-independent digital mega-resellers.
- The transition from a traditional dealership model to a direct sales model is a major operational and cultural change.
Using data to increase long-term customer value
- After-sales service improves customer experience, and remote services such as maintenance and spare parts are delivered to the door or to the center.
- 3D printing can deliver parts faster and closer to customers.
- OEMs may own all aftermarket experience or outsource it to third parties.
working capital
- Growing financing needs create opportunities for the development of captive finance companies.
- Financing remains a source of revenue for dealers and OEMs as they sell more vehicles directly and become a one-stop shop for vehicles.
- Fleet management, vehicle insurance, extended warranties and payment processing offer additional revenue opportunities.
Attract talent into the industry
- Automakers are struggling to attract and retain talent to design and build connected electric vehicles.
- Some OEMs have opened R&D and design shops in Silicon Valley to recruit technical leaders.
- The industry needs to adopt Silicon Valley methods and ways of working, with shorter hours and better employee benefits.
United KPMG Enterprises
KPMG experts can help you leverage technology to create The Connected Enterprise. This is a business where the front, middle and back offices go hand in hand. A company where you can better connect with customers, employees and business partners. A company that enables you to react quickly to market signals and make changes to help seize opportunities as they arise.
KPMG Connected Enterprise is an industry-specific, customer-centric approach to digital transformation. It helps to focus key business processes, functions and relationships on meeting customer expectations, creating business value and driving sustainable development in the digital world.
Organizations that intentionally invest in these capabilities are twice as likely to meet customer expectations, achieve their goals, and realize a return on investment. *
You can use the diagnostic tool to understand how connected your organization is. It assesses you against industry best practice and highlights opportunities and challenges that may affect your ability to become a connected enterprise.
- 2Xbeat
*Base: 1299 experts involved in making strategic decisions for clients
Source: Commissioned research conducted by Forrester Consulting on behalf of KPMG in 2018. The study is conducted by industry. Each ability is activated by five secondary abilities.
learn more aboutKPMG MotorsIntern or connect with KPMG experts ready to help you take on new challenges and grow.
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