Auto industry revenues keep growing but profitability shifts away from

Auto industry revenues keep growing but profitability

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Auto industry revenues keep growing – but profitability shifts away from traditional profit pools Significant shifts in global automotive value pools 1) Based on Strategy& 2030 Scenario. Totals may not equal sums shown due to rounding 2) Vehicle-based mobility as a service, including “shared autonomous” and “shared driver-driven” | Note: Consolidated view; supplier value pools not eliminated from vehicle/aftermarket/MaaS revenues to show full industry value pools Source: PwC AutoFacts®, IHS, HBR, Technavio, Thomson Reuters, Oxford Economics, OEM Reports, Strategy& Analysis 9 13% 8% 48% 40% 14% 11% 8% 7% 12% 9% 2% 19% 9,200-9,500 2030 2% 2018 0% 5% 1% 100% 5,400-5,600 ~4% MaaS 2) Connected Services Suppliers - Tech Insurance Financing Aftermarket New Vehicle Sales Suppliers - Traditional Mobility as a Service (MaaS) increases vehicle utilization and vehicle wear and tear, leading to higher parts sales but a declining share of vehicle sales MaaS fleet owners emerge as an important new group of buyers, with higher bargaining power, leading to lower margins in aftermarket, financing and insurance Autonomous features increase vehicles’ technical complexity, and the share of value provided by new tech suppliers. However, there are fewer collisions, cutting insurance and aftersales demand Electric powertrains are less complex than ICE equivalents and need less maintenance, which reduces traditional supplier revenue streams 53% 70% Key levers Revenue distribution 1 (in $bn) Profit distribution 1 (in $bn) Strategy& | PwC Annual growth in % Traditional Pools
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Alternative ownership models offer new revenue opportunities Traditional vs. alternative car ownership models Ownership models Purchase 1 Leasing 2 Subscription Rental Car sharing Ride hailing Micro-mobility Traditional car ownership Alternative ownership Ride sharing 1 Driver motivation and distance sweet spot Control-seeking, all distances Flexibility-driven, intercity medium distances Price-sensitive, short urban distances Time-sensitive, super-short urban distances Comfort- seeking, short urban distances Avoiding upfront investment, all distances Experience- driven, all distances Spontaneous, short urban distances Total cost of mobility (TCM) per km today 2 0.55 €/km 0.95 €/km 0.70 €/km 0.60 €/km 0.90 €/km 1.30 €/km 1.55 €/km 2.50 €/km 5-7% Profitability today 3 10-15% 10-15% No data available <5% Not yet profitable Not yet profitable Not yet profitable 3 4 5 6 7 8 10 1) Pooled shuttles shared with multiple people 2) TCM = total cost of mobility for end user in Germany incl.: asset (mid-sized car), insurance, maintenance and gas; assumptions: mode 2: average of leasing offers 15,000km yearly, 24 months, mode 3: average of current subscription offers, mode 4: average of rental offers 15,000km yearly, 24 months, mode 5: typical city trip, mode 6: typical city trip by taxi, mode 7: typical city trip, mode 8: average of current micro-mobility offerings (e-scooter) 3) best view generated based on respective annual reports, newspapers and expert input Strategy& | PwC
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Car ownership will continue to shift away from private owners Further increase of alternative ownership is expected
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  • Fall '20
  • Automobile, Electric vehicle

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