I tend to be old school when it comes to cars. Despite having started my professional career with Renault, I have always seen cars as a way to go from point A to point B. But I have to recognize that I am not insensitive to technological disruption. Automatic traffic updates, large displays, sensors, cameras and parking assistance have become normal features. I am not even at the level of my colleagues who program their electric cars to start heating 5 minutes before leaving the office. The thing is, every day we move further away from the thermal engine car that your uncle was fixing himself in the driveway.
This disruption in the products drives tons of evolutions in the architecture of the cars where platforms are now both at hardware and software level but also has ripple effects in the entire supply chain. With centralized architectures and function-driven design, traditional Tier 1 suppliers are squeezed between OEMs tempted to go direct and Tier 2 benefiting from scale effects.
In the same way, the meteoric rise of electric cars (x6 according to McK) will drive a shortage in rare earth-hungry components, semiconductors and charging infrastructures and raise serious questions about the ability of the industry to scale up.
In this issue of This Week in Consulting, we explore key issues for the automotive industry. What are the key consumer trends, how they translate in the outlook for key technologies from infotainment to electric vehicles, what are the associated challenges to overcome and how OEM should adapt their channels to better connect with customers.
Enjoy the read. Feel free to comment. Would love to hear your views.
Chairman Consulting Quest
This week’s must read
In This Week’s Must Read,we explore key issues for the automotive industry, key consumer trends, the transition from infotainment to electric vehicles, and more. Enjoy the read. Feel free to comment.
With regulators in Europe and the US setting aggressive goals for curbing greenhouse gas emissions from cars and light vehicles, most of the prominent car makers added electric vehicle (EV) options in every part of their product portfolios. While these scenarios are turbocharging the global EV market, there are challenges as well. Read this article to know about the bumps and roadblocks in the path to EV adoption and their impacts on the progress of climate goals.
This week’s media
Automobiles have been there since the last century. When cars have evolved to become faster and more sophisticated, the basic structure remained more or less the same with the internal combustion system that powers it, the four wheels that make it move, and the steering that controls its movement. But what will cars of the future look like? Will they fly? Will they be amphibious? Will there be only automatic cars on the roads? In this video, the futurist, Bernard Marr discusses six transformative trends in the Automotive Industry that both consumers and businesses should be prepared for.
In which countries consumer interest in EVs/ BEVs/ PHEVs is the highest? Why people in these countries are switching to EVs? What are their purchasing preferences? This Global Automotive Consumer Study by Deloitte brings to you information about automotive consumer trends impacting a rapidly evolving global mobility ecosystem. It also discusses the evolution of mobility, smart cities, connectivity, transportation, and other issues surrounding the movement of people and goods. Click to read more.
The Indian automotive sector is faced with a semiconductor shortage that is not expected to subside soon. In this article, the EY research team explains why they think this shortage is not a sudden development and analyzes the reasons behind the most recent shortage. In what ways are companies expected to respond to this crisis? Will the government of India come up with any assistive measures? Know more from this article.
The automotive industry is exploring a D2C purchase model for consumers Brands like Tata, Volvo, Volkswagen, and Mercedes-Benz are going 100% online either globally or for select markets. With the entire transaction taking place online, the automotive value chain will change fundamentally where dealers’ roles will get significantly limited. This article from Infosys examines the D2C advantages for auto OEMs and also discusses what lies beyond online selection and the purchase of cars.
The automotive sector is on the cusp of changes and both traditional OEMs and new start-ups are spending hugely to address these trend. The rapidly increasing uptake of electric vehicles could transform the automotive ecosystem and promote even greater innovations. However, the sector needs to address some major constraints before EV production and sales can gain scale. What actions are to be taken to extend this momentum of EVs? Read more here.
This week’s consulting news selection
Auditing expert Petra Justenhoven has been elected the Chairwoman and Senior Partner of PwC Europe and Territory Senior Partner (TSP) of PwC Germany. Petra said as a key member of the PwC global leadership team, she would work towards an equitable and sustainable future.|
Moss Adams, one of the largest accounting, consulting, and wealth management firms is joining forces with a boutique consultancy firm, Mengali Accountancy. The Mengali team, including the founder and members of the top management, will join Moss Adams.|
FTI Consulting appointed Denis Reynolds as a Senior Managing Director for its Forensic and Litigation Consulting segment. Joining KPMG Canada, Reynolds will focus on providing trusted advisory services at the board, executive committee and C-suite level, as well as growing a financial services team in Toronto and across Canada.|
Laurent is the Chairman and Co-founder of Consulting Quest. Focused on greater value creation, and being thoroughly familiar with Consulting, Laurent has sourced and sold millions of dollars worth of Consulting over the course of his career. Prior to joining Consulting Quest, Laurent was Executive Vice President Oil and Gas at Solvay and Senior Partner Transformation at Oliver Wyman.