As urban areas rapidly expand, the corresponding increase in traffic hampers productivity, stresses infrastructures and presents a host of environmental concerns across the world. Although consumers will continue to include personally owned vehicles in their mobility mix, more are also turning to different modes of transportation.
This poses a growing threat for automotive companies, but also affords them the opportunity to renew their relationships with consumers. By extending their services and enriching their value, automakers can simplify how customers purchase, use, access and finance transportation – all without forfeiting their fundamental function of making vehicles. Given their role in driving the economy, automakers can be among the leaders in establishing new mobility business models.
Yet, the path to success in this area will not be easy. A host of new competitors are eager to take the lead in developing and profiting from new mobility solutions in such areas as leveraging alternative vehicle use options, advanced telematics and subscription-based, bundled services. In numerous areas, these new entrants are closer to bringing advanced solutions to the market than traditional automakers. Auto companies make vehicles, and their entry point for providing mobility solutions is to continue to develop technology-packed intelligent vehicles at prices that are competitive in a given market segment.