New Business Models for the Automotive Industry

Digitization is the predominant mechanism of change in the automotive industry. Automotive manufacturers (OEM) and suppliers (OES) in particular need to engage with digitization, both directly and indirectly. Initiatives related to the use of digital technologies in efficiency- and efficacy-related projects have become essential components of their everyday business

The number of reports, studies and comments currently available on the subject is barely manageable for interested observers. Keeping abreast of the bigger picture is a challenge in this jungle of information. With that in mind, this study provides a guide in which 134 new service business models are analyzed and combined with meaningful expert interviews. It identifies the current status of the main levers and value drivers for each business model, and compares this with well-researched expert opinions.

It offers in-depth insights into the following areas, which are the key determinants for implementing new business models:

  • Investment and income streams
  • Establishing and expanding expertise
  • Change mechanisms in organizational cultures
  • Intra- and inter-organizational collaboration models

Eight core assertions address the current opportunities and challenges of digital business models in the automotive industry:

  1. The automotive industry is transforming, which is manifested in investment relocation, partnerships, and new business models
  2. OEMs and OESs recognize the demand for an orientation on service, but are not achieving the uncoupling of digital business models
  3. The automotive industry has recognized the opportunities and risks of digitization
  4. In future-oriented fields and associated business models, OEMs and OESs must prevail over “interlopers” from outside the industry
  5. OEMs and OESs are delaying the establishment of data services, and therefore the opportunity for valuable ecosystems, while start-ups and technology firms are focusing on this area and making advances in knowledge here
  6. Collaboration with competitors appears to be the only way to establish new, service-oriented business models
  7. New business models require organizational and structural changes
  8. Openness in establishing expertise is a central component to success – protectionism with respect to internal expertise is damaging
Order Study