Last year as I have remarked in other posts car registrations were up to a 10 year high and there are interesting developments in autonomous driving or self drive cars. However, IBM's recent survey suggests future value will not be in more sales or autonomous cars but in what we have called connected cars.
The implications for the Automotive Sector especially manufacturers are that it will be necessary to develop, possibly in collaboration with others, built in connectivity and content. This will bring greater knowledge of customers if the manufacturers and sellers have access to the information generated about the driver's preferences.
It will also become an industry without borders with the impact of social media, digitisation and technology.
The survey results were very clear - industry growth will come from delivering additional value rather than just selling more vehicles. And even though one third of those surveyed feel they will be able to adapt to the challenges this presents, only one in five feel they are prepared now.73% of OEM executives rated mobility services, cost-effective alternatives to vehicle ownership like car/ride-sharing, as a significant area for co-creation with consumers.The same percentage rated collaboration with other industries as the best opportunity for industry growth, with 75% expecting non-traditional industry partnerships to have a key role in the automotive ecosystem by 2025.