The classical case of vehicle development and manufacturing will still retain a lot of value, but the basic framework required to be efficient here will likely evolve.

No discussion on automotive and mobility is complete without the question marks that get thrown up in every forum on the direction the industry is headed in. Technology breakthroughs, social trends and the emerging trends in the way mobility is defined is creating a new ecosystem which threatens to dislodge the current set up.
Who, how and when still remain a question mark, but what is more and more evident is that the levers driving this disruption will create a completely new value chain.
On one side, the Insiders with huge stakes in the current state of mobility believe that they in some ways are able to control the pace at which this disruption will roll out. The truth is probably not completely in sync with this belief. While the Insiders are confident that the incremental technology leaps they are rolling out is sufficient to gradually move towards the new states of mobility, the reality maybe far different. Today, technology defining the consumer expectations driving the move towards autonomous and connected cars, car sharing and electrification of mobility etc is being led by the so-called disrupters. These are the big and sometime not so big Technology companies who are revolutionizing the way we have been used to experience mobility. The whole game is changing and today Mobility is no longer only about getting from point A to point B, it is now all about a more personalized and customized experience and besides being faster, cheaper, cleaner, safer and more efficient.

The key to change
This change spawns the whole set of new opportunities and emerging shifts in the value chain. A decade earlier almost 100 percent of the value chain in mobility was spread and enjoyed by the current stake holders. The biggest value was in R&D and development and vehicle design along with efficient manufacturing and after sales service. In the recent years with the advancement of technology and the need for safer, cleaner and more communicate transportation we have already seen some part of this classical pie shift from the manufacturers to a different set of industry segment which are more in the technology space offering communication and other electronic interfaces. These indeed have been driven by changing customer behaviour and expectations of a customized experience.
Going forward, this pie is likely to be challenged further. The value chain will shift in more ways than one. The classical case of vehicle development and manufacturing will still retain a lot of value, but the basic framework required to be efficient here will likely evolve. Higher levels of customization and flexibility in the manufacturing set ups and faster and more personalized customer interactions will be key.

Providing value
Value will accrue to businesses who are able to provide a seamless mobility experience and are able to create a customized and meaningful mobility experience. There will be value in people who create and manage the infrastructure required for this new system of mobility- whether it is the physical infrastructure supporting the new realm of mobility or the data networks and energy infrastructure which would drive the industry. Today, these look futuristic and everyone with stakes in the Industry likes to believe that they will be able to manage the change in a way which will not dislodge their investments and current assets and will be more gradual. However, the shift is evident, pace is difficult to predict. The writing on the wall is however clear- To stay relevant players have to take note of the disruptions which are shaping up this trend and will have to determine the way forward with a clear analysis of the role they can play in the new ecosystem. Overall what is certain is that for the end consumer the future of mobility is going to be a paradigm shift in terms of a holistic consumer experience.
END