Seizing Emerging Opportunities in the Automotive Industry

FREMONT, CA: As electrification accelerates and connectivity technologies evolve, the automotive industry is experiencing profound shifts in its business models. This transformation has intensified competition, challenging the strategies of established brands while opening new opportunities for emerging players and Original Equipment Manufacturers (OEMs).

It is evident from the seven new entrants in the Top 100 this year, compared to only two last year, and the impressive growth from recently launched brands that the landscape has changed. New brands are outpacing established brands regarding the value, while more established brands have seen more subdued growth.

With evolving mobility, changing drivetrain and model type requirements, a shifting regulatory and customer landscape, and new technology requirements, the industry and its brands are at an inflection point.

Multi-medium mobility: Many cities worldwide, especially the more affluent ones, are reacting against cars due to the emergence of multi-medium and micro-mobility. According to a Mckinsey study, up to four out of five people commute to work by bike, moped, or scooter. Alternative mobility service providers like scooter companies are experiencing strong commercial success, filing IPOs, and reaching significant scale. Our modes of transport will also change soon in ways other than close-distance mobility trends. It is also worth noting that personal air mobility has seen an enormous increase in investment over the last two years, although it is a little further off in time.

Electric Vehicles' Acceleration: Despite these headwinds, represent a huge opportunity for OEM. Brand Finance Automobiles 100 2022 ranks EV brands as the biggest success stories. Tesla's value has increased by 40 percent to USD 46.0 billion and has climbed three ranks to become the world's 3rd most valuable auto brand. Aside from maintaining its production capacity and top spot in EV model sales, it has also accumulated valuable revenue streams from captive software. With car brands moving to electric vehicles, positioning becomes more important. EV branding and messaging will lose some distinctiveness over their green credentials as countries introduce more stringent air quality and emission regulations, OEMs invest more, and EVs become more prevalent. Sustainable powertrains will no longer be a competitive advantage.