Managing the transition from car manufacturer to mobility provider

20th April 2023

The automotive sector is consolidating, with the old manufacturing silos of buses, cars, taxis, commercial vehicles, motorcycles, agricultural and construction vehicles all merging into one big new industry classification: mobility.

The introduction of the automotive vehicle revolutionised society. The car gave people more personal freedom and vehicles in general gave more flexible access to jobs and services – as well as creating them. As far as technological, economic, and social innovation, it's probably had the biggest impact in modern history, on how people live. But after 100 years of dominance, the mobility revolution is now well underway, with multiple sources predicting electric sales set to overtake internal combustion engine (ICE) sales by 2025. This is largely due to the ban on sales of new models of diesel and petrol cars, coming into place in 2030. With new hybrids being given a stay of execution until 2035, on the condition their zero-emission-mode can cover a significant distance. (Even though this distance has not been set by the government yet!). Automotive manufacturers who have largely been fragmented in their long term strategies to provide more sustainably fuelled vehicles, are now rapidly repositioning and getting in shape for the challenges, threats and opportunities ahead.

The electric vehicles on offer currently look very similar to their fossil fuel consuming predecessors, in the same way the earliest automotives looked like horseless carriages. This serves multiple rationales for the supply chain for much of the electric vehicle exists, making the transition from ICE to electric more of an evolution from a manufacturing perspective. People on the whole, don’t like change, so the new vehicles look virtually identical, its’ just the fuel and a few other features which consumers need to adapt to. However, the coming features, changing in attitudes to transportation is set to rapidly evolve our paradigm. If you think about how the internet (only first publically available in 1994) has changed how we live our lives in the last 30 years – then you start to get some perspective on the changes, and speed of change coming. The dynamics within automotive manufacturing is already accelerating, impacting on supply chains and logistics across the world. Vehicles are rapidly evolving to be autonomous, connected, electrified, and shared. Who knows what the cars of 2050 will look like, what will power them or if they will even have a steering wheel.

Mobility is already delivering new business models and industry disruptors

In a nutshell, the winds of change can push you to a better world. The continuous disruptions of operations and supply chains experienced since the 2008 recession and global pandemic have dramatically accelerated several underlying business and technological trends in the automotive industry. Mobility is no longer defined as access to a single mode of transportation. It is defined by giving people choice and freedom to use a series of different modes of transport. The emergence of mobility as a service (MaaS) - which includes Uber style ‘ride on demand’, Turo car sharing, e-scooter sharing, and bike sharing – this has played a huge part in driving this change, removing the inefficient costs of personal vehicle ownership, providing door-to-door transport, and personalised options to suit evolving travel needs.

Automotive manufacturing will change fast, and automotive logistics will be at the sharp end

There is a huge opportunity for mobility brands and original equipment manufacturers (OEMs) to change gear to meet consumers’ evolving expectations around mobility. Connected cars, sensors, electrification, and new business models (including mobility-as-a-service) all take advantage of advanced technology solutions. Automotive companies must find the right balance between continuity and profitable business; while at the same time lead the way in disrupting their own business models. Flexibility, agility, and innovation will be critical when it comes to the unique challenges facing the future direction of the automotive industry.

Here’s how the 360 onsite logistics audit and assessment works!

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_{There’s only one condition - you must be UK based and be operating in the automotive sector, with a head count of around 25 - 30 or more operating in logistics roles.}