Will digital spark a new automotive industry?

The automotive industry has been at the forefront of technological innovation for years, but the incumbents are facing increasing competition. New digital players are entering the market, their diversity of offerings is threatening traditional automakers’ business models and across the entire value chain.

Now is the time for automakers and suppliers to think more about what it means to be digitally connected. The companies that solve this riddle have the opportunity to provide not only a product but also an “experience” to customers, who are searching for ways to extend their “digital lives” into their vehicles. The need to collaborate is more important than ever.

Traditional Assembly vs. Digital Companies

Automotive OEMs are facing fundamentally different metrics when dealing with digital services

Source: Oliver Wyman analysis

Will digital spark a new automotive industry?