architecture increase costs Low revenue margins due to high development costs

Architecture increase costs low revenue margins due

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architecture increase costs Low revenue margins due to high development costs Missing regulation for technological and geographical expansion of charging infrastructure Business model challenges AUTOMATED SHARED ELECTRIC BoM 1 cost increase 2 +12-16% +12-22% +2-3% 3 CONNECTED +2-3% 3 Infrastructure challenges Cost and timing of high-speed mobile network (5G) coverage Availability of infrastructure-to- vehicle communications Alternatives to GPS (high precision) Availability of driving zones Regulation for operating alongside traditional traffic (pedestrian, bike, car, van) Limited downtown real estate space for charging & overhaul Cross-provider user authentication Integration with other modes of transport Regional and urban availability Availability of high-speed electric charge points Availability of bidirectional charging solutions Availability of hydrogen fueling network for fuel cells
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Number of cars in use will likely peak in the EU by 2025 – continued growth in China and the US Shared mobility will impact the total number of vehicles in use Source: PwC AutoFacts® 7 100 200 0 300 400 % Vehicle parc (million) 269 2018 2020 2025 2030 263 273 258 Autonomous cars Total parc cars Connected Electric cars 2018 2020 % 2025 254 2030 260 266 272 0 20 40 60 80 100 Share (in %) 197 2018 2030 2025 2020 227 303 369 Declining car parc in EU due to increase of shared mobility & integrated mobility platforms Delayed roll-out of shared mobility pushes car parc in US and China in line with growth of total mobility demand In China, parc projection may exceed sustainable levels Total vehicle parc (in millions. Autonomous, connected, electric as percentage of total vehicle parc) Strategy& | PwC
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37 100 <1 Basic non-connected vehicle today 63 ~1 49-53 65 2030 Regulatory 2-3 49-53 65 2030 Fully-Fledged 118 142 +18% +42% Regulation as well as innovation could raise vehicle bill of material cost by 20-40% Regulatory requirements push installation of enhanced connectivity, automation, and electrification Note: Bill of material indexed to 100% in 2018 | Source: Strategy& analysis 8 Addition of basic connectivity for emergency response in accordance with NCAP safety requirements Addition of basic L1-L2 ADAS to accord with NCAP safety requirements Switch from ICE to BEV Addition of advanced connectivity/head-unit- to-host connected services and enable (for example) vehicle usage for shared mobility Addition of advanced L4 ADAS as enabler for autonomous driving ADAS - Low Connectivity & Infotainment - High (add.) ADAS - High (add.) Connectivity & Infotainment - Low Powertrain - High (add.) Powertrain - Low Others Powertrain changes due to environmental requirements have the largest cost impact from a regulatory viewpoint Enabling vehicles to earn additional revenues from connected or automated features adds further margin pressure to the vehicle BoM, to be recovered via vehicle price or services contribution Intense effort necessary by suppliers and OEMs to drive down technology costs by 2030 – e.g. reduction of 65-75% for ADAS – to reach profitability Comments 12-22 Strategy& | PwC
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14% 8% 41% 31% 15% 14% 11% 11% 13% 11% 11% 0% 11% 2018 4% 5% 0% 100% 2030 380-400 490-510 ~3%
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  • Fall '20
  • Automobile, Electric vehicle

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