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Photo: Pradeep Gaur/Mint
Photo: Pradeep Gaur/Mint

Disruptive trends in the auto industry

McKinsey report predicts how tech-driven trends will revolutionize the way industry players respond to changing consumer behaviour

A recent study by McKinsey & Co. predicts how technology-driven trends will revolutionize the way industry players respond to changing consumer behaviour, develop partnerships and drive transformational change. Here’s a look at how disruptive trends are all set to transform the auto industry by 2030.

1. Shifting markets and revenue pools

The automotive industry is ripe for disruption. Digitization and new business models have revolutionized the industry.

2. Changes in mobility behaviour

Disruptive technology-driven trends have the potential to fundamentally change the relationship between the consumer and the automobile.

3. Diffusion of advanced technology

New business models will be aided by shared mobility and data connectivity services.

4. New competition and cooperation

Software competence will be one of the differentiating factors. Increase in disruption to traditional auto makers as tech companies enter the market.

Lessons for the automotive industry

Automotive incumbents cannot predict the future of the industry with certainty. They can, however, make strategic moves now to shape the industry’s evolution. In order to get ahead of the inevitable disruption, incumbent players should implement a four-pronged strategic approach.

Total revenues from personal mobility will accelerate by 2030, but shifting markets and new technologies ensure that future automotive growth will be more granular than in the past.

Source: McKinsey.

Graphics by Ahmed Raza Khan/Mint.

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