The automotive industry has long been one of the world's most important industries, but according to industry observers, traditional models with combustion engines will have an increasingly difficult time generating stable profits in the future. The good news is that with the rise of new technologies, such as e-mobility, autonomous driving, software, and transport services, the industry has a huge potential to revolutionize and generate high profits.
According to a recent analysis by the Boston Consulting Group (BCG), almost all of the growth in the industry in 2035 will come from these new areas of technology. Although the profit margin may still decrease in the short term, BCG experts predict that it will be more than six percent on average in the long term. In fact, the experts believe that merging individual, increasingly machine-controlled cars with the rest of the transport system could create a new super-industry, with a total turnover of up to 8.3 trillion US dollars and a total profit of 524 billion US dollars.
China and the USA are expected to be the pioneers in this new era, and European automotive companies must hurry to keep up with them. According to BCG's expectations, conventional diesel and petrol engines will no longer have a future by 2035, so companies will have to rethink how vehicles are designed, built, sold, maintained, and operated.
While the transition to new technology may require significant expenditure, the payoff could be enormous. Not only will the automotive industry be able to reduce its environmental impact, but it could also generate high profits in the long term. Therefore, companies must take bold and proactive steps to embrace new technology and stay caught up in the race for high profits.
The future of the automotive industry is exciting. It will require companies to embrace new technologies, such as e-mobility, autonomous driving, software, and transport services, to revolutionize the industry and generate high profits. The decline in classic profits is inevitable, but the potential for growth and profitability in new areas is enormous. I recommend that industry players take notice of these developments and position themselves accordingly for the future.