How product innovation is proving to be a differentiator in mobility

After a turbulent year, the global automotive sector is showing positive signs of recovery. However, amid a surge in demand, the automotive original equipment manufacturers are still facing challenges to meet the orders due to various market forces. Factors, such as demand patterns, value chain breakdown, consumption behavior, operating costs and new entrants, are forcing automotive companies to rethink their business strategies and restructure their operations. 

To maintain a competitive advantage over their peers, mobility companies are acquiring companies operating in areas such as battery cell manufacturing, vehicle-to-everything software and autonomous driving. Although impacted by supply chain disruptions and raw material shortages, the mobility industry remains confident of leading recovery in the coming months. Automotive companies are optimistic that proactive measures such as product design and innovation, and business restructuring, can help them achieve their long-term business goals. 

Key takeaways:

• Automotive suppliers remain confident in recovering their volumes and achieving profit margins due to the effects of electrification trends, cost management programs and strategic partnerships.
• Changing consumer behavior and mass adoption of digitalization has given the mobility industry a new revenue opportunity. The companies are responding by taking greater control of the digitalized services instead of leaving them for a third party.
• Logistics providers are investing in technology to reduce operational inefficiencies, improve supply chain visibility and increase collaboration with consumers. The advent of new entrants in the transportation and logistics space is slowly transforming the industry’s landscape.

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