The KPMG Automotive report ‘Me, My Car, My Life’ will change the way we think
and revolutionise the way we think about and use our cars. A car is no longer just a way to get from point A to point B. It’s a control centre for our mobile lives. As a result, the automotive industry is in the midst of a massive evolution.
Key takeaways from the whitepaper:
The era of the two-car family will likely decline
In fact, the argument for owning a car gets weaker by the moment. Spending approximately $30k for an asset that loses 11 percent of its value the minute you drive it off the lot and then sits idle more than 90 percent of the time isn’t the most rational economic decision. Mobility-on-demand companies like Uber and Zipcar now provide compelling alternatives to ownership, especially in urban areas. With the potential shift in ownership demand, OEMs better update their economic models.
Enormous opportunities in new markets
Mature markets are becoming saturated, while new markets are emerging. History teaches that when people make it into the middle class, they go shopping for cars. In China, India and sub-Saharan Africa, millions, if not billions of new buyers are reaching that threshold. But the future won’t look like the past, because just as these new buyers get ready to open their wallets, new alternatives to ownership are popping up and gaining traction.
Tame complexity or lose your customers
Some high-end cars now have more lines of code than fighter jets, and the complexity is wreaking havoc production costs and new product launches. Vehicle recalls are at a record high, and customers are complaining vociferously about the design and usability of in-vehicle infotainment. The value of a car now resides in software and electronics - and how well they work together. Get it right or lose your customers.
OEMs are falling from the top of the pyramid
In fact, there isn’t going to be a pyramid any more. The structure of the automotive ecosystem is changing fast. Designing and producing new vehicles have become far too complex and expensive for any one company to manage all on its own, and in the future, horsepower may matter less than processing power.
The winning companies will be nimble, future-oriented – and prepared to invest in new technologies, new talent and new strategic alliances. This confluence of factors will forever change the way automakers view product development, the traditional automotive supply chain models, their customer sales and service models, and even their organisational structures.
Read the report here: