New manufacturers, electric and autonomous vehicles, cutting-edge technologies: the automotive industry is reinventing itself in an increasingly competitive environment  

Although the rise of electric vehicles in the automotive industry is now indisputable, its widespread adoption still faces major challenges. To encourage the widespread use of electric vehicles, we need to reduce both the development costs and the recurring costs by implementing Design-to-Cost and Redesign-to-Cost programs. At the same time, to cope with the growing demand, it is essential to adopt an agile approach to supply chain management, which is subject to shortages and price volatility. Avencore brings more than 15 years of experience in Design-to-Cost projects as well as its expertise in Supply Chain resilience to all players in the automotive ecosystem.  

The transition to fully autonomous, technologically advanced and connected vehicles will profoundly transform the automotive industry’s competitive landscape and will open up new horizons in terms of safety, comfort, and the driving experience. By using the Value Engineering approach, the manufacturers and their suppliers can focus their innovation efforts on features that their customers are actually willing to pay for. 

Emerging new consumer behaviors, such as car leasing and car sharing, are driving the definition of new business models based on mobility rather than ownership. This development goes hand-in-hand with a growing polarization of the market, with demand concentrated in the high-end and “low-cost” segments.  

Market players need to target those emerging markets where the focus is on future growth, while navigating a landscape characterized by mergers, acquisitions and strategic alliances driven primarily by the need for massive investment in new technologies.