we still expect people movers with Level 4 autonomy to be operating in

We still expect people movers with level 4 autonomy

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we still expect people movers with Level 4 autonomy to be operating in restricted areas at less than 50km/h by 2021, however we expect a delay until 2029 in highly automated Level 4/5 vehicles making it on to the road Shared: our research shows that 47 percent of European consumers would consider giving up their own car in favor of widely available and adequately priced autonomous robo-taxi services Electric: by 2030, 46 percent of new car registrations in China will be for electric vehicles . In Europe the figure will be 40 percent and in the US 35 percent. Internal combustion engines (ICE) still have the advantage when it comes to range, with only premium-priced fuel-cell electric vehicles able to compete These changes have fundamental implications for OEMs and their suppliers. OEMs need strategies to reduce their R&D costs through partnerships, and to focus on developing new ideas while outsourcing non-core back-office, R&D and technology solutions. We also believe five new sustainable roles for suppliers will emerge: as smart infrastructure enablers; automated shuttle-vehicle manufacturers; platform providers; mobility intelligence providers; and vehicle feature and demand providers. Finally, new flexible and hybrid organizations need to be created, and due to the scarcity of people with the right skills, the auto industry must upskill its existing workforce to perform digital and data-management roles. Connected, automated, shared, electric: what’s driving the pace of digital change? Summary – technical readiness, consumers, regulation and economics dictate transformation speed Strategy& | PwC Note: Please refer to respective section for detailed assumptions and sources behind stated propositions 4
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New value opportunities: alternative ownership models 1 5 Strategy& | PwC
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New technologies add significantly to vehicle costs while infrastructure could become bottleneck for user adoption Electric and automated features are the biggest cost drivers Strategy& | PwC 1) BoM = Bill of material 2) BoM increase until 2030 compared to today's base vehicle (13,500€) excluding connectivity solutions 3) connected and shared analyzed together as highly correlated, hence 2-3% BoM increase estimated considering both connected and shared shift together | Source: Strategy& analysis 6 Connectivity now required by regulation and safety standards Fast erosion from perceived premium to commodity experience Willingness to pay declining among customers Low connected services renewal rates Additional cost elements being added to ADAS systems • Economic challenges hinder global roll-outs of AV systems Fewer acquisition targets available to extend technological expertise Increase in inter-company co-operation to distribute additional development costs Ride-hailing providers still unprofitable • Leading car-sharing providers have withdrawn from unprofitable cities • Car manufacturers depreciate initial investments Asset utilization not sufficient to generate meaningful returns Investments in electric car
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  • Fall '20
  • Automobile, Electric vehicle

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