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OVERVIEW

Automotive Futures: An exploration of the future of mobility

The automotive industry is rapidly evolving due to technological advancements, changing consumer preferences, and increasing environmental awareness. 

This evolution is driven by breakthroughs in technology, materials science, and engineering, as well as the urgent need to address climate change and embrace sustainable transportation solutions.

Innovations, next-generation technologies and new mobility services like ride-sharing platforms and car subscriptions are revolutionizing the industry and challenging traditional ownership models.

Additionally, societal and political conversations about the future of transportation, environmental impact, and government regulations are shaping the industry's direction.

Infrastructure investments, emissions regulations, and urban planning initiatives are key components of policy agendas aimed at fostering sustainable and integrated transportation networks.

Delve deeper into the emerging shifts

Culture & Society
Shifts in how people think about mobility

Shift With Millennials (those born between 1981 and 1996) well into their peak earning years, and Gen Z (those born between 1997 and 2013) establishing careers and considering big-ticket purchases, Original Equipment Manufacturers (OEMs) can’t afford to ignore the distinct values of younger consumers as they relate to cars—especially car culture and ownership.

Automotive customers in these age cohorts are tech-forward. They prioritize sustainability, efficiency and convenience over muscle and styling. For them, a vehicle is less a status symbol and more a tool that enables their lifestyle—the on-the-go urbanite, the up-for-anything weekend warrior, the after-school activities family, and so on.

Having come of age in the digital world, they demand vehicles that offer a range of high-tech features and services. At the same time, they’re more likely to embrace shared mobility services and alternative transportation modes in an effort to minimize the cost and hassle of car ownership and reduce their environmental footprints in how people think about mobility.

From performance to features
From status to lifestyle
From ownership to mobility as a service
Technology & Connectivity
Shifts that enable new mobility experiences in the automotive space and beyond

When new tech paradigms emerge, people seek to make sense of them by relating them to what they already know (thus “horseless carriages”). While the next generation of cars will borrow heavily from the look and feel of the predecessors, we know so well, they’ll actually be something entirely different: moving physical-digital platforms that enable new experiences in transportation, communication, productivity, and entertainment. In the present stage of evolution, we can only begin to imagine some of these changes.

As next-generation cars evolve, they will transcend the boundaries of traditional transportation and become multifunctional hubs, seamlessly integrating various aspects of our lives. With advances in connectivity, autonomous driving, and immersive technologies, these vehicles will offer unparalleled levels of personalization, adaptability, and convenience, redefining our perception of mobility and transforming the way we interact with the world around us.

From ride to experience
From repair to patch
From roads to networks
Purchasing & Finance
Shifts in the ways people access mobility products and services

Driven by evolving consumer preferences, digitalization, and innovative financial solutions, the vehicle purchasing and financing landscape is undergoing a significant transformation. In some regions, traditional dealership visits are being replaced by seamless online platforms, enabling customers to browse, customize, and purchase their dream vehicles from the comfort of their homes. Financing options are becoming increasingly diverse and flexible; they now cater to a wide range of budgets and lifestyles, offering consumers the freedom to change vehicles more frequently, ensuring access to the latest models and features.

As the automotive industry continues to adapt to these changes, we expect additional innovations in purchasing and financing that prioritize convenience, personalization, and accessibility. 

From dealerships to marketplaces
From appointments to care plans
Politics & Regulation
Shifts in the regulatory environment of the automotive industry

Automotive is on the cusp of significant political and regulatory challenges. This is true, we believe, of every industry with deep legacies in 20th-century business practices. Business models that rely on material extraction, complex global supply chains, and energy-intensive production and operating processes face pressure to achieve greater environmental sustainability; become accountable for their externalities; and expand their contributions to creating a healthier, fairer, and more just society. 

And it’s not just watchdogs and regulators leading this push. Consumers want products that are sustainable and ethically sourced, and that align with their higher values—even if it means paying more.

The 21st century is shaping up to be an era in which companies are expected not just to deliver innovative products and services, but also to prioritize the well-being of the planet and its people. Companies that lead the way in adopting these new models and practices will avoid being flat-footed by changing regulatory regimes while setting the standard for innovating under emerging constraints—an essential survival skill for modern businesses.

From emissions to externalities
From disposal to circularity
From car-centricity to multimodality

In Summary

The ideas, trends, and opportunities explored in this report highlight the immense potential for innovation to transform the way we travel and experience mobility, while also addressing pressing issues like sustainability and efficiency. Diversified micro-mobility services, car sharing, the rise of e-commerce, a rapidly changing regulatory landscape, and the imminent arrival of autonomous vehicles—each of these trends represent a set of new challenges and opportunities for automotive companies to reinvent themselves and redefine the way that people move through the world. 

We invite all stakeholders in the automotive industry to embrace the transformative potential of innovation to shape the future of mobility. By embracing new technologies and adapting to changing consumer preferences, we can create a future mobility system that meets the needs of both people and the planet.

To learn more or to discuss how these trends might be impacting your business, visit the Automotive section of our website or connect with our experts at Aarthi.Arunachalam@cognizant.com.

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