1、Digital Auto Report 2023What consumers really wantVOLUME 1DigitalAuto Report 2023Strategy&2Eleventh annual DigitalAuto Report,developedby Strategy&and PwCGlobal consumer survey with a focus on the US,EU and China(n=3,000)Quantitative market outlook up to 2035,based on regional structural analysisInt

2、erviews with industry executivesat OEMs and suppliers,and with leading academicsand industry analystsDigital Auto Report 2023 Volume 1Coming up next:Volume 2Assessing global mobility marketdynamicsMarket outlook penetrationof technologies and mobility typesTechnology shifting gears in connected,elec

3、tric,automatedRegulation slowdown or accelerationof key policies?This report:Volume 1Understanding consumer preferences and implicationsConsumer view changingmobility preferencesImplicationsfor auto players interface,subscriptionand chargingDigitalAuto Report 2023Strategy&Addressing changing consume

4、r preferences requires auto players to gear up their user interfaces and business modelsNote:Please refer to respective section for detailed assumptions and sources behind stated propositionsExecutive summary Volume 13Our consumer survey(n=3,000 in Germany,US,China)captures current preferences in au

5、to&mobility and is contrasted with expert opinionsIn respect of connected services,consumers first want to get the basics right the highest priority is safety+navigation,phone mirroring is gainingimportance,on-demand car functions as well;experts rate the importance of infotainment and lifestyle hig

6、her than consumers do;willingness to payfor full set of connectedservices stands at 20/months in GER and the US,and at 40 in China experts give more conservativeestimatesGermans still hesitant about BEV cars only 35%would consider getting one;more openness in the US 50%;China very open to BEVs with

7、90%Low trust towards L4 automated vehicles in GER and US with 60-70%feeling uncomfortable vs.15%in China;but on the other hand,Germans who want to use L4 have a higher willingness to pay to use robo-taxis than to use driver-driven taxis;in the US and China willingness to pay is lowerPurchasing a new

8、/used car preferred;subscription models gain traction;online car purchase scores highest in China(36%vs.10%in Germany)Consumers intend to use public transport more often than last year,but show similar intentions for own car;less interest in sharing/hailing1.Consumer preferences2.Automotive implicat

9、ionsAuto players face strategic challenges with regard to connected,electric,automated&smart mobility.Volume1 focuses on three key aspects:A Getting the user interface rightAs software-defined vehicles open the door to many new markets,OEMs need to be clear in which consumer life areas they want to

10、play,which experience differentiators to focus on(luxury vs.convenience),and how to build a corresponding service portfolio.Investment decisionsshould be based on value creation beyond direct user revenues,with a balancedview on build vs.buddy vs.buy for tech componentsB Rethinking vehicle salesOEMs

11、 benefit from a rising demand for car subscriptions-expected to grow from 0.3m to 2-4m units by 2035 in Europe.To reach profitability.OEMs need to balance consumer needs(model flexibility,transparentpricing)with smart assetlifecycle management for maximum residual valueC Going beyond the vehicleNew

12、business models emerge around batteries and bi-directional charging.With5m bi-di cars in Germany by 2035,market potential is 160-220m for vehicle-to-home/microgrid and 470-550mfor vehicle-to-grid solutions assuming successful orchestration of ecosystem playersDigitalAuto Report 2023Strategy&4Content

13、s1.Consumer preferences connected,electric,automated and smart2.Implications for auto players interface,subscriptionand chargingDigitalAuto Report 2023Strategy&Latest consumer attitudes within CASE are reflected in a survey of 3,000 respondents in Germany,US and China*Age brackets harmonized;*Low in

14、come(1,6T EUR,2T USD,8,3T EUR,10T USD,64T YUAN)Overview of consumer survey5Consumer OverviewKey resultsn=1,000Gender(%)n=1,000n=1,0005149Age*(%)Household income*(%,gross monthly)824439 7Medium incomeLow incomeRather low incomeRather high incomeHigh income33353235-5418-3455+3regions15questions3,000re

15、spondents50504456273736184339102430918821311327Employer type of experts(%)211663OEMSupplierOperator18384433531450expertsPurchasing a new or used car still preferred option,but carsubscription models are gaining tractionConsumers want to reduce CO2mainly through more walking/cycling,switching to elec

16、tric car,and using more public transportSafety+navigation remain the most important connected services features on-demandfunctions gainingpopularityWillingness to pay at 20 per month in Germany and the US,while at 40 in China experts more cautiousGermans still sceptical about BEV cars only 35%wouldc

17、onsidergetting one,but more openness in the US 50%In China,overwhelming preference for BEV with 90%consideringsuch option vs.only 80%consideringICEGerman/US respondents sceptical about L4 automated cars 60-70%uncomfortable vs.15%in ChinaWillingness to pay for robo-taxis vs.driver-driven taxis islowe

18、r in the US and China than in GermanyDigitalAuto Report 2023Strategy&Source:PwC Strategy&consumerresearchSafety and navigation still most important feature for respondents across all regions.Significant increase in the number of participants in Germany who rate smartphone mirroring as important”Mirr

19、or smart-phonein car27%NavigationSafetyInfotainment/EntertainmentVehicle managementOn-demand car functionsLifestyle andcomfort80%78%69%60%45%39%82%78%71%61%55%62%59%93%92%96%76%85%89%92%Question:“Which connected service categories are particularly important to you?”Consumer ConnectedSafety and navig

20、ation remain as most important connected services features on-demand car functions on the riseConnected services Share of participants rating feature as important2023202120206+Infotainment/entertainment moreimportant for younger consumersDigitalAuto Report 2023Strategy&Experts rate infotainment high

21、er than consumers do in China,they underestimate relevance of on-demand functionsConnected services Share of experts rating feature as importantSource:PwC Strategy&expert surveySafety,navigation and entertainmentare considered the most important byexperts.Experts in Germany are rather less enthusias

22、tic when assessing the importance of mirroring smart-phonesExperts in China are comparatively less upbeat when assessing the importance of on-demand functions and lifestyle&comfort services.”94898931736863Vehicle managementNavigationSafetyLifestyle andcomfortOn-demand car functionsMirror smart-phone

23、in carInfotainment/Entertainment-48%+63%+130%69946969758175+35%+28%80936780877367-27%+14%-25%Question:“Which connected service categories are particularly important to you?”Expert Connected2023 Experts2023 Consumer7DigitalAuto Report 2023Strategy&On my smartphonedirectly53%59%59%On a screen mirrorin

24、g from a smartphone into the vehicle69%69%63%On an appof content providerinstalled in your car45%37%45%Auto OEM appaccessing content32%35%33%Smartphone mirroring to the car has highest rating;Auto OEM apps for service access are less popularConnected services and media/entertainment in the carSource

25、:PwC Strategy&consumer research;Difference to 100%:no/low likelihoodHighest preference across all countries is for smartphone mirroring.Media/entertainmentvia an auto OEM application is less popular.”Question:“How would you prefer to enjoy connected services and media/entertainment in your car?”Cons

26、umer Connected1stand 2ndrank8DigitalAuto Report 2023Strategy&010203060504070Notes:1)Calculationof price points based on van-Westendorp-methodologySource:PwC Strategy&consumer research;Exchange rates:USD/EUR 0.93,YUAN/EUR0.14(15.02.2023);PwC Strategy&expert survey research 2023;n=50High spread of wil

27、lingness to pay in China indicates strong polarisationof luxury vs.budget customers differentiatedservice packaging neededHigher optimal price in China indicates that consumers envision more benefits from the“perfect connected service bundle”than in the US/GER expert view more conservative on prices

28、.”Consumer ConnectedWillingness to pay for connected services around 20/month in Germany and the US but twice as much in China(40)Connected services Median willingness to pay1)for a full set of connected services in the vehicle that“perfectly fit your needs”Willingness to pay1)(monthly in)Question:“

29、At what price would you consider a full set of relevant connected services Too cheap?”A good value for money?”Starting to get expensive?”Too expensive?”By nationalityXXXMaximum priceMinimum priceOptimal priceExpert estimate9DigitalAuto Report 2023Strategy&Among on-demand functions,automated driving

30、features such as traffic jam pilot/parking pilot are attracting more interestOn-demand car functions Share of participants rating function as importantSource:PwC Strategy&consumerresearchConsumer ConnectedAutomated driving functions traffic jam pilot or parking pilot attract considerably more intere

31、st vs.previous year.Air condition activation is still viewed as the most important on-demand car function.”Question:“How important would be on-demand car function.to you?”69%63%63%53%48%49%44%Traffic jam pilotAdvancedheadlightfunctions/performanceAir condition activationExtension of battery range(e.

32、g.+80 km)Seat heating activationParking pilotIncrease of engine power(e.g.+50 hp)60%52%53%77%65%62%41%87%95%78%85%87%86%90%2023202110+Trafficjam pilot more important for older consumersDigitalAuto Report 2023Strategy&Experts in Germany/US attach even more importance than consumers to automated drivi

33、ng function attractivenessOn-demand car functions Share of experts rating function as importantSource:PwC Strategy&expert surveyExpert ConnectedExtension of battery range and traffic jam pilot are considered the most important functions among expertsQuestion:“How important would be on-demand car fun

34、ction.to you?”84%74%58%89%84%95%100%Air condition activationAdvanced headlightfunctions/performanceSeat heating activationTraffic jam pilotParking pilotExtensionof battery range(e.g.+80 km)Increase of engine power(e.g.+50 hp)+94%+129%94%63%69%81%81%94%81%+81%+108%87%73%73%80%87%73%87%2023 Experts202

35、3 Consumer11+When compared with consumers,experts are particularly bullish about on-demand engine power.”Experts in US&China are moreconservative in assessing theimportance of air conditioningactivationDigitalAuto Report 2023Strategy&+H2O277%85%84%90%81%Source:PwC Strategy&consumerresearchQuestion:“

36、Assuming you wanted to buy/lease/subscribe to a passenger car,how likely are you to consider the following types of engines?”Consumer ElectricLooking at powertrain preferences,German and US consumers stick with gasoline,while Chinese prefer BEVShare of participants rating engine types as likely for

37、next purchase(%)87%89%79%57%42%44%Gasoline69%80%73%PHEV44%51%93%39%41%82%35%53%93%BEV35%52%95%35%18-34yo55+yo35-54yoAge bracket12+Gasoline engine surprisingly more attractive for younger consumersGasoline is most popular engine type in USA and Germany,followed by PHEV engines,which are slightly more

38、 popular than BEVs.Chinese consumers exhibit opposite preferences with BEVs being most popular,ahead of hybrid and ICE engines.”DigitalAuto Report 2023Strategy&Question:“How comfortable would you feel using an autonomous vehicle(Level 41)”1)There is still a steering wheel and pedals,but no humanacti

39、on or supervision is required,except in more complexcases such as inclement weather or an unusual environment2)Can operate fully automaticallyon any road and under any conditionsthat a human could negotiate.There is no steering wheel or pedals.All you have to do is specify a destination to the vehic

40、leSource:PwC Strategy&consumerresearchConsumer AutomatedQuestion:“How comfortable would you feel using a fully autonomous vehicle(Level 52)”50%43%24%19%11%17%23%38%9%16%47%4%100%Very comfortable Rathercomfortable Rather notcomfortable Not comfortableat all66%53%18%18%13%10%17%30%6%12%51%100%6%Vs.14%

41、in2021Vs.18%in2021Vs.39%in2021In general,willingness to use automated cars has recovered in comparison with relatively low 2020 figures,which resulted from negative headlines at the time e.g.following accidents and cybersecurity threats.Scepticism towards“fully automated”vehicles(Level 5)still stron

42、ger than for Level 4.Consumer acceptance of automated driving remains low in Germany and the US more openness in ChinaAutomated driving Consumer attitudesLevel 4Level 513DigitalAuto Report 2023Strategy&Source:PwC Strategy&consumerresearchThe intention to use time gained from not driving went down co

43、mpared to 2021 thereduction was significant in Germany and the US.Media&Entertainment as well asrelaxation are still the main intended activities.”Consumer Automated414533525139Media andRelaxationWorkandMedia andRelaxationWork andRelaxationMedia andSocialentertainmentand recoveryproductivityentertai

44、nmentand recoveryproductivityand recoveryentertainmentexchange(e.g.video(e.g.sleep)(e.g.email)(e.g.video(e.g.sleep)(e.g.email)(e.g.sleep)(e.g.video(e.g.video-streaming)streaming)streaming)conferencing)414030455539Automated driving Top 3 preferences for usage of time gained20222021575349626257Questio

45、n:“For which activities would you use the time gained while driving in a fully autonomous vehicle?”O(jiān)n an robo-ride,people want to be entertained or relax in GER/US they also want to work,but in China prefer to socialize14DigitalAuto Report 2023Strategy&60%of US citizens want to pay less for a robo-t

46、axi vs.a driver-driven taxi;only 5%want to pay more vs.30%in GermanyAutomated driving Willingness to paySource:PwC Strategy&consumerresearchQuestion:“When considering an average taxi ride and its price,what would be your willingness to pay for an autonomous ride compared to this taxi ride?”Consumer

47、Automated28%24%45%56%64%67%36%37%57%44%39%44%37%30%30%53%53%37%27%37%12%7%12%9%6%55+y35-54y18-34y35-54y18-34y55+y3%18-34y35-54y6%55+y100%Im willing to pay moreIm willing to pay the same Im willing to pay less15While younger German respondents are willing to pay more for an autonomous ride,older Germ

48、ans are less inclined to do so.US and Chinese respondents overwhelmingly intend to pay less for an automated ride among those who want to pay less,a 40-50%price cut from driver-driven taxis is the norm.”DigitalAuto Report 2023Strategy&Majority of respondents prefer to purchase a new or used car;but

49、car subscription models are attracting interestRanking of buying/leasing/subscribing to a carSource:PwC Strategy&consumer research|Difference to 100%:no/low likelihoodThe intention to purchase a used caris growing,especially in Germany andthe US.Subscriptionis gaining in popularity especially in Chi

50、na.The preference for subscription increased strongly in Germany and the US in 2023(27%vs.14%in Germany and 19%vs.15%in US).”Question:“How would you rank the following ways of acquiring a car if you needed to purchase,lease,or subscribe to a passenger car in the next one to two years?”Consumer Smart

51、 MobilityPurchase of a new car70%76%82%Purchase of a used car87%78%29%Leasing of a new carLeasing of a used car47%33%31%19%56%7%Subscriptionof a car27%19%43%1stand 2ndrank16DigitalAuto Report 2023Strategy&Readiness for online car purchases very high in China,while rather low in Germany the US falls

52、in betweenWillingness to make car purchases onlineSource:PwC Strategy&consumerresearchQuestion:“Would you buy your next car online?The willingness to buy a car online varies significantly across countries.In China,people are particularly open to completing certain steps or even the entire buying pro

53、cess online.In contrast,the majority in Germany feel more comfortable with store processes.”202341%10%37%12%18%202332%27%22%202336%15%19%31%Consumer Smart MobilityHighHighHighLowLowLowWillingnessWillingnessI would rather do everythingat the storeI would configureit online,but sign and test driveit a

54、t the storeYes,I feel comfortableconfiguringand signing online,but I would preferto do a test driveat the store Yes,I feel comfortablewith doing all steps onlineWillingness17DigitalAuto Report 2023Strategy&20212023Even as immediate COVID-19 risks decline,using ones owncar remains popular;increasing

55、use of shared modes in ChinaSource:PwC Strategy&consumerresearchMobility pattern after COVID-19 restrictions(%)Consumer Smart MobilityQuestion:“COVID-19 has temporarily changed our mobility behavior in many aspects.How do you plan to use modes of transport once we have left the pandemic behind us?”M

56、oreSameLess/not at allUsing ones own car is still seen as the most convenient means of transportation with highest increase in demand in Germany and the US.In China,consumers plan to useshared modes more.Across all regions,the number of people planning to use public transport more has increased.”202

57、1By foot20232021202320212023202120232021202320212023Own bikeOwn carPublic transportShared micro-mobilityCar-sharingRide-hailing18DigitalAuto Report 2023Strategy&45%60%60%29%202136%202354%40%28%13%202325%Source:PwC Strategy&consumerresearchIn Germany,there has been a sharp increase in the number of c

58、onsumers who say that better availability is an important factor in persuading them to use sustainable transport.US respondents focus strongly on cheaper prices,whereas user-friendly access is most likely to encourage respondents to use sustainable transport in China.”59%40%10%202124%23%20232021Ince

59、ntivesby the employer(e.g.job bike,car sharing benefitpackage,.)User-friendlyaccess(e.g.cashlesspaymentviaapp,.)Familyoffers(e.g.4 bikes forthe price of 2,.)CheaperpriceBetteravailability(e.g.morebikes)Consumer Smart MobilityPrice and availability are by far the top drivers for encouraging consumers

60、 to use sustainable transportFactors encouraging sustainable transportation modesQuestion:“What would encourage you to use sustainable transportation(e.g.bike sharing,car sharing,public transportation)more frequently?”19DigitalAuto Report 2023Strategy&25%75%Source:PwC Strategy&consumerresearchTop-3

61、contributions to CO2reductionHigh willingness to contribute toCO2reduction,especially in China(98%)strong increase in the US(79%vs.52%last year)Main contributions will be completing short-distance journeys more often on foot/by bicycle,switching to anelectric car,or using publictransport more freque

62、ntly.”Question:“What major personal changes would you like to do to contribute to a reduction in CO2 emissions?”51%Completely cut out short-haul flights25%29%Use public transport more frequentlyShort distances more often on foot/by bicycle43%37%Short distances more often on foot/by bicycleSwitch to

63、an electric car24%Use public transport more frequentlyUse public transport more frequently49%48%54%Switch to an electric carShort distances more often on foot/by bicycle79%Do nothing21%Change behavior98%2%Consumer Smart MobilityEvery country has different priorities to reduce CO2:In GER more walking

64、,in the US switch to BEV,in CN public transport20DigitalAuto Report 2023Strategy&211.Consumerpreferences connected,electric,automatedand smart2.Implications for auto players interface,subscription and chargingContentsDigitalAuto Report 2023Strategy&22Gettingthe user interfacerightDigitalAuto Report

65、2023Strategy&The relevant market for automotive players is expanding beyond the car itself maintaining user access is crucialSource:Strategy&,PwC EcosystemizerRealiserEnablerMobility demand is influenced by long-term economic,political and social trends as well as generational changesThe individual

66、user is located at the center of the ecosystem approach(business to human)Consumer needs can be groupedinto ten distinct Life AreasWithin these LifeAreas,ecosystems emerge in the form of business-to-business and business-to-consumer relationships around specific customer needsHuman needs in mobility

67、 Life Areasdetermine customerrequirementsSuccessfulmobility ecosystem players are clear on four key topics:Redefining business models to meet human-centric mobility needsMobility demandMobility solutionsDigital portfolio scopeE.g.lifearea coverage,niche positioning,ExperiencedifferentiatorsE.g.luxur

68、y,convenience,Valuechain integrationE.g.vertical/horizontal integration,partnering,Value leversE.g.top-line,bottom-lineoptimization,23RecreationOrchestratorE.g.AggregatorE.g.OEME.g.SupplierDigitalAuto Report 2023Strategy&Getting the digital interface right means creating a differentiated experience

69、for diverse customer needsSource:Strategy&analysisExperience differentiators ExamplesAt your fingertipsFINN managesto providecustomerswith theirvehicleof choicearound sevendays afterbooking7Hassle-free serviceGenesispicks up and returns thecar foraftersalesservices at a place of choice,managedthroug

70、h a personal assistantSeamlessly integrated offerings Uber integratesmulti-modalmobilityoptions with related servicessuch as fooddelivery,healthor transit on one platformFull flexibilitySixtoffersvariousvehicleownershipmodels(renting,subscription,sharing)with flexiblerun timesand payment schemesin o

71、ne appProactive offeringsBMW 7 Series actively welcomesriders into the car by extending acarpet madeof lightTrading scarcityLamborghinihas created only 5 digital NFTs based on physical keys madefrom carbon fiberfrom the internationalspace stationDifferentiated experience:LuxuryDifferentiated experie

72、nce:Convenience24Efficient interactionsMercedesme app lets users managetheir vehicles on the go,from schedulingservice,to makingpayments,to getting assistanceat the push of a buttonBespoke servicesBentleyallows theirbuyers tocustomizeevery part of the car,includingpaint,finishes,materialsand evenlig

73、ht-projectedlogosDigital opulenceRolls Royce cementsthe credentialsof its bold new brand identity forits website with moodvideossimilarto perfumeadsCrafted touchpointNIO broadenstheir serviceswith the EP House,a space where owners can cometogetherand celebratethe brandDigitalAuto Report 2023Strategy

74、&A value-creating digital service portfolio requires automotive players to balance multiple trade-offsSource:Strategy&analysisDigital portfolio scope ExamplesVehicleFunction-as-a-ServiceConsumeronboardservicesConsumer offboard servicesB2B/data servicesPortfolio Trade-offsDifferentiation vs.revenue p

75、otentialReach vs.profitabilitySynergy focusvs.risk hedgingTouchpoint controlvs.open partnersDigital first vs.BEV/AD availabilityMobilityEntertainmentWorkHealthSound BMW e-engine sound packAutonomousdriving Tesla autopilot upgradeLight BMW high beam assistCamera Tesla sentry modeAccess Tesla virtual

76、bluetooth keysParking search and pay VW we parkP2P car/ride sharing Sono motors appCar data marketplace Caruso,Otonomo,High M.Car data based insurance BMW CarDataPredictivemaintenance BOSCH,CarmenIntelligentcar assistant Alibaba,Volvo/DaimlerGaming Tesla arcade,RacingEntertainment Tesla caraokeAdvan

77、ced navigation MB live trafficMusicstreaming BMW Spotify,NIO RadioPassenger safety NIO fatigue warningSmartOffice Connection BMW IFTTTEmergencyassistant GM OnStar guardianPlug and charge VW/IonityMood-basedlightening Mercedes-Benz ambientIn-car Office Mercedes me connectMeditation Porsche Feel-Good-

78、CoachNFT Collections Roll Royce PhantomAI Avatar Fetch.ai autonomous agentsCrypto Car Wallet Various pilotsIn-carAR gaming Audi/holoride partnershipAutomatedpark and charge Bosch Autom.Valet ParkingFleet mgmt./diagnostics Daimler connect businessRoadside assistantsupport Urgently/OtonomoDriverslog/G

79、PStracking Daimler connect businessSafer trafficplanning Mercedes Data/LondonLast MileLogistics NIO delivery in trunkWeb3 Loyalty Program BMW/Coinweb25DigitalAuto Report 2023Strategy&Connectedservices activationfeesand/or recurringrevenues relatedto monthlysubscriptions60-70%are willing to pay 180$/

80、year for connectivity service setUpselling effectduring the ownershipcycle by unlocking personalizationfeaturesor activatingbuilt-in hardware35-50%are interestedin post-purchase activationsHigher satisfactionwith on-board experienceand creationof stickiness throughsubscriptionservices45-55%are more

81、loyal to brands to which they have a subscriptionHigher revenuesfordealers fromoriginal parts sale and workshops traffictriggeredby predictive maintenance30-40%switch to paid subscription after freetrialDirect revenuesfrom grantingthird parties access to own platform or monetizing(anonymized)data/in

82、sights50-60%of companiesindicatethat they do sell data to third partiesLeverageof real timedata on customerpreferences/behaviors for timelyadjustmentof vehicle specificationsand features30-40%additional revenue potentialbased on customer insightsReductionof the numberof model-specificvariantsby acti

83、vatingon-demandvehiclefeatures20-30%cost reduction potential throughvariant reductionOptimizedinventorymanagementthrough advancedplanning of upcomingrepairs enabledby predictivemaintenance20-30%inventorydecrease due to demandforecastingPreventionof recall campaignsby leveragingOTA updatesto fixpoten

84、tial technicalissues within the circulatingfleet30-40%of incidentscan partly/fully be preventedby OTAAlong the value chain and vehicle life cycle,digital services unlock value beyond direct user monetizationValue levers of digital services ExamplesImplicationsBottom-line:OpEx/CapExOptimizationTop-li

85、ne:Direct revenue and customer lifetime valueServices monetizationBrand loyaltyPost-purchase activationsPlatform access/data salesAfter-sales LoyaltyR&D optimizationRecall campaignsVariant managementParts inventory managementSource:Strategy&analysis+expert discussion26Ecosystem businesscases should

86、extend beyond vehicle-centric business casesDirect and indirect revenue potential,and opportunities beyond vehicle offerings,should be consideredalong the customer life cycleB2B offerings offer significant direct monetization potentialIn additionto external opportunities,a significant amount of inte

87、rnal opportunities exist,e.g.to increaseefficiencyin processes&portfolioDigitalAuto Report 2023Strategy&IIIIIIIVOEMs are forced to partner with technology players to deliver compelling digital services risking a loss of controlValue chain integration Range of partnership optionsSource:Strategy&analy

88、sisNo tech player involvementOperatingsystem and all applicationsare developed by the OEMFull control for OEM,no standardization,slower development,reduced offering compared to market leadersOperating system supplyStandardizedtechstackis provided by supplier,e.g.Android AutomotiveOSFaster developmen

89、t,easier integrationof externalapplications(e.g.Spotify),standardizedsetting cannot be adjusted by OEMContent mirroringApple/Googlecontentis displayed by using apps within the vehicle,e.g.Android AutoCommon mobile apps(e.g.Google Maps)are immediately availablein-vehicle;less use of OEM native apps/c

90、ontentOEMControlTech player involvementVNext?A winning digital experiencerequires customer proximity,tech capabilitiesand effective data governance27Tech player content using vehicle dataUsage of car data to enrich 3rdpartyin-vehicle apps,e.g.forusage based insurance or location based commerceCompel

91、ling user experienceon par with mobile app UX,but OEM apps loose advantage of specificdriver/vehicle insightsExternal developmentof the digital experienceEntire automotivesoftware is developed by tech supplierData governance between involved stakeholderscrucial to avoid downgrading of OEM to pure ha

92、rdware provisioningDigitalAuto Report 2023Strategy&28RethinkingvehiclesalesDigitalAuto Report 2023Strategy&Duration(average figuresfor Germany)IncludedservicesRelative price per month2years3 yearsLow,due to fewer services andlonger durationtrend5-91years2)month2-6years1 year1)High,due to high conven

93、ience1day1yearHigh,due to high amount ofincluded mileage7 days1)10min.1weektrend30 min1)Highest,due to highest convenience and most services included1)Exact modelselection/someconfigurationUp-frontdown paymentAdditionaldriver allowedRisk-dependent fee(driver history)Insurance,tax and registrationSch

94、eduledservice,repairs/wearand tearFlexible cancellationSwitchingmodels Delivery and collection Residualvalue coverageFullydigitized customerjourney/=Usually included/Depends on provider/Usually not includedSubscription fills the gap between leasing and rental offerings resulting overall in four majo

95、r vehicle ownership archetypesVehicle ownership archetypesLeasingSubscriptionRentalSharing1)Based Strategy&analysis;2)Depending on specific regulatory environment allowing“prolonged lease”Source:Strategy&analysis29DigitalAuto Report 2023Strategy&2.Lifecycle:Used car leasing(differentcustomer(s)As al

96、ternative ownership models such as subscription emerge,OEMs need to sharpen their vehicle lifecycle mgmt.skillsSubscription customer and asset journey Example4.Used car leasingCustomerjourneyVehiclejourney12345789Car handoverScheduledmaintenanceSubscription model suggested to customerFor their vacat

97、ion,the customer temporarilyaddsa second driverCustomer occasionally uses car sharingCar enters used leasing contractwith a new customerScheduledmaintenanceRepairs following accidentScheduledmaintenanceAfter the lease,the car is returnedYear0Refurbishbattery and ADAS in preparation for next lifecycl

98、eInterior refurbish1.New car leasing2.Subscription3.New subscription5.Car sharing and rentalMaintenanceand minorfixesFamily plans:subscription renewalwithbigger carDue to increased price consciousness,customer decides to lease a used carMove into city:end of lease and switch to sporadic sharing and

99、rental carsCustomer signs contractto lease new carNew car is in-fleetedIn the last lifecycle,the car moves into the sharing fleetAt the end of itsuseful life,the car isrecycled or sold B2BAfter the lease,the car is returnedCar rentalduring vacationResidual value optimal:customer offered to trade car

100、sCustomerincreasesthe annualkm6Scheduled maintenance1.Lifecycle:New car leasing3.Lifecycle:Car sharing(differentcustomers)Source:Strategy&analysis30DigitalAuto Report 2023Strategy&Suitable ownership modelsHolistic vehicle lifecycle management aims to increase revenue and utilization,especially durin

101、g 2ndand 3rdphaseSubscription“3x3”asset lifecycle1stLifecycle phase(years 1-3)2ndLifecycle phase(years 4-6)3rdLifecycle phase(years 7-9)Residual valueRevenue and utilization potentialMaintenance and refurbishment1)In accordancewith residualvalueAdditionalrevenuefrom e.g.,contractextrasor repair char

102、gesAsset potentialRegular maintenancecostsSporadic refurbishmentcostsPotentialrepair costsDependingon vehicleutilization in respectiveownershipmodelContractadd-onRecycleLeasingSubscriptionRentalCar sharing2)()3)Repurpose vehicleRefurbish vehicleMaintain/repairvehicleAdd contractextrasRecycle compone

103、ntsSequenceof ownership models as well as externalmarket conditionshaveinfluenceon most suitable selectionfor each lifecyclephaseFor certainownershipmodels,assets that are viewed as too old maynot be favoredThe younger the asset,the shorter the duration-especiallyif utilization is high1)Annual OEM-p

104、rescribed maintenance/serviceintervals and use-based repairs sporadic refurbishment;2)Depending on specific regulatory environment allowing“prolonged lease”;3)As low-budget optionSource:Strategy&analysis31DigitalAuto Report 2023Strategy&Alternative ownership models are on the rise and offer profit p

105、otential for OEMs if the asset life cycle is managed wellVehicle ownership model split and profitability Indicative1)Estimate of share development for ownership model depends on shares of competingmodels;LCP:Life cycle phase;2)Profitabilityestimate based on individualconsideration of ownership model

106、 for average middle class passenger EV(price 53.5k EUR)Source:Strategy&analysisSharing42%100%10%Leasing2%SubscriptionPurchase45%Rental1%6.05.60.31.40.213.4Region Europe,40 countriesOwnership model split 2023 m unitsProfitability of ownership models2)Ownership modelsTraditionalcar ownershipAlternativ

107、eownershipPurchaseLeasingSubscriptionRentalSharingLCP 1year 1-3LCP 2year 4-6LCP 3year 7-97%9%11%-115%83%76%-91%78%71%10-15%5%5%5%Total5-7%10-15%10-15%10-15%5%Subscriptionhas potential to grow to 2-4m unitsby 2035 in Europe1)Leasinghas potential to growto 7-8m unitsby 2035 in Europe1)32Overall profit

108、abilitypotentialhigher for leasing,subscriptionand rentalthan for purchaseProfitabilityacross LCPs varies from relatively constant to a sharpincrease.With rental,there is only one LCP.It is not individual consideration but a merged portfolioview that is crucial for OEMsDigitalAuto Report 2023Strateg

109、y&More flexible ownership models offer benefits and risks for OEMs and customers a win-win solution is requiredVehicle subscription benefit and risk perspectiveAlternative ownership models need to create a win-win situation for customers and OEMsCurrently,they mostly play into the strategic agenda o

110、f OEMsStrong customer centricity and efficient asset management of used cars are needed to reach profitabilityOEMs may leverage their existing retail network and preferential vehicle acquisition conditions to differentiatethemselves from start-up competitorsOEMKeeping track of battery lifecycle/recy

111、cling requirementsaccording to regulationsProduct piloting and learning from data insights into longer-termcar usageCustomers willingness to pay and pricepressure for alt.ownership offeringResidual value risk at end of lifetime and need for strong operational excellenceCustomerFlexibility of car own

112、ership in case of changing life circumstanceResidual value and admin process(insurance,maintenance,etc.)peace of mindOpaque pricing and difficulty of comparing offeringsPerception of ownership is absentSource:Strategy&analysis33Key takeawaysDigitalAuto Report 2023Strategy&34Goingbeyond the vehicleDi

113、gitalAuto Report 2023Strategy&Rise of e-mobility provides ample opportunities to capture value beyond the vehicle e.g.with batteries and chargingValue pools beyond the vehicle Focus e-mobilitySource:Strategy&analysis35Battery value chainCharging value chainAdjacent ecosystem serviceseMSP1)Last mile

114、servicesLocation-based commerceFleet mgmt.servicesOnboard entertainmentChargepoint operationEnergy provisioningSite and asset ownershipCharging equipment manufacturingEnergysystem integrationBi-directional ChargingBatteryexchangeCar/battery usageBattery productionBattery in car assemblyBattery recyc

115、lingBattery secondlifeInstallation and maintenanceDigitalAuto Report 2023Strategy&Infrastructure and vehicle penetration are key requirements for successful realization of bi-directional charging use casesBi-directional charging Market simulation GermanyParkingHome andapartmentbuildingsCharging hubs

116、1.8m0.16m0.03m0.7mBi-directional sockets by 2030Bi-directional charging-capable vehicle fleet(#)OfficePrivate2.5mPublic0.19mTotal 2030:2.7 million bi-directional socketsTotal 2030:5 million bi-directional vehiclesBi-directionalchargingcapable vehiclefleet in Germany(as share of total EV fleet)Source

117、:PwC Strategy&Study(2022):“Der E-Mobility-Check:Wiebereit ist Deutschland?”;Strategy&analysis36202820232026202420252031202720322029203020332034203511%6%29%22%15%36%42%48%54%58%61%62%63%DigitalAuto Report 2023Strategy&Enablers&LimitationsFront-of-meter prosumer use cases depend on a multitude of exte

118、rnal factors that limit mainstream adoption in short termV2L:Vehicle-to-load(e.g.e-bike,another EV,etc.)V2H/B:Vehicle-to-home/buildingV2G/VGI:Vehicle-to-grid/vehicle-grid-integrationPV:Photovoltaic1)Includes software for grid optimizationof households(V2H)and public charge point operators only;2)Inc

119、ludes software for power market trading for households and public charge point operators onlySource:Strategy&analysisProsumer charging business model comparison GermanyBehind the meterFront of meterPower market tradingLoad shiftingSelf-supply optimizationV2G/VGIV2LV2H/BMid-term:EV user demand driven

120、 by incentive to earn/save money,but dependingon available solutions&attractive pricingShort-term:GrowingEV user demand to use vehicle e.g.as additional storage for home PV or emergency power bank(in the US)CustomerDemandNeed for penetration of bi-directionalcapable vehicles and infrastructure(i.e.E

121、V charger)to reach“critical mass”Need for development of standard protocols(interconnection,communication,vehicle and charging station safety&functionality)Energy TechFullysupportiveregulation notexpected before 2028 at EUlevel due to high stakeholder complexity(smartmeter as reference)Fully support

122、ivebehind-the-meterregulationexpected by 2024 due to limited complexityof“closed”micro-ecosystemRegulationNeed for flexible V2G tariffs:Time-of-Useor Time-of-DaypricingMinimumnumber of kwh must be available at a certain point in timefor utility providers to rely uponwhen managing the gridTech cost r

123、eduction(vehicle/infrastructure)required for scale upAvailability of comprehensiveancillary services as importantenablerEconomicsUse CasesApplication AreaEnabler RevenuesPotential for software enablers:160-220m1)in 2030While front of meter stillrequiresmore regulatory alignment at European level,beh

124、ind the meter already has a high market readiness in the short termPotential for software enablers:470-550m2)in 203037Consumption optimizationDigitalAuto Report 2023Strategy&Realization and scale-up of prosumer use cases require efficient charging and battery stakeholder coordinationCharging&battery

125、 ecosystem stakeholder activationCharging stakeholdersSource:Strategy&analysis38ServicesWhite label SoftwareCharging dataCharging dataIntegrationChargingdataServicesEV dataCharging dataCharging dataEV/BatteryCharge and dischargeServiceproviderSoftwaresupplierBattery manufacturerVehicle manufacturerP

126、arking providerUtility sectorCPOBi-directional energy provisionEnd userConnect to chargerV2HMain scale-up challengesStakeholder fear of losing control points to a central,dominant player(e.g.OEMs see USP in unique charging experience)Relatively high transactions costs for clearing and billing(given

127、comparatively low value of single transactions)Different interests and priorities across parties(e.g.CPOs want to maximize utilization,whereas OEMs want to maximize charging availability)Can a decentralized coordination approach help to solve these challenges?Enabling ecosystem partnersData exchange

128、DigitalAuto Report 2023Strategy&Implication for automotive players:Holistic ecosystem approach beyond core business is key to future successSource:Strategy&,PwC Ecosystemizer Be clear about own ecosystem role whether orchestrator,realizer or enabler Build offering portfolio and allocate resources ac

129、cordingly Maintaina holistic and iterative approach in the selectionof suitableofferings Actively manage the portfolio and prioritize clearly accordingto a coherent,consistent and multi-layered ecosystem logicOn the one handEcosystems can create lock-in effectsbased on differentiated offeringsCustom

130、er lifetime value can beincreased through holistic journeycoverageFaster growth and higher earning potential can be achieved when compared with traditionalapproaches to value creationOn the other handBuilding&managing ecosystems iscomplexTheoretically,unlimited number of potentialofferings complicat

131、es the selection processProduct-centric view carries risk of missing market/customer needs(particularly for more advanced topics)Success factorsEcosystems39RecreationPersonalizedpleasureHolisticwellbeingSmartenviron-mentRest andrelaxationRelation-shipsBelieve andmindfulnessGreen andseamlessmobilityN

132、ew WorkPersonalwealth andlegalCustomizedand fastdemandfulfillmentNetwork contacts40Jrg Kringsjoerg.krings Automotive EuropeDr.Jrn Neuhausenjoern.neuhausen AlternativePowertrainsJonas Seyfferthjonas.seyfferth Connectedand Smart Mobility貢獻(xiàn)者貢獻(xiàn)者Dr.Andreas Gisslerandreas.gissler DigitalTransformationAksh

133、ay Singhakshay.singh Automotive USSteven Jiangsteven.jiang Automotive ChinaKentaro Abekentaro.abe Automotive JapanSteven van Arsdale Malien ZehnpfenningCarl HeselschwerdtSebastian HaukTobiasSeemann Patrick SchwenkeTobiasKillmeierMilos Bartosekmilos.bartosek Infrastructure DealsThilo Bhnenthilo.buehn

134、en pwc.chMobilityVenturingHartmut Gthnerhartmut.guethner AutomatedDrivingHuchu Xuhuchu.xu Automotive ChinaJun Jinjun.jin Automotive China 2023 PwC.All rights reserved.PwC refers to the PwC network and/or one or more of its member firms,each of which is a separate legal entity.Please see for further

135、details.Mentions of Strategy&refer to theglobal team of practical strategists that is integrated within the PwC network of firms.For more about Strategy&,see .No reproduction is permitted in whole or part without written permission of PwC.Disclaimer:This content is for general purposes only,and should not be used as a substitute for consultation with professional advisors.