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Automotive perspective 2015 1 According to the Society of Motor Manufacturers and Traders © 2014 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 www.pwc.com/structure for further details. Disclaimer: This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Cost of electronics and software is <20% of the cost 10 years ago U.S. CAFE standards come into effect in 2016 New regulations to ensure vehicles must now average 34.1 miles per gallon decreasing vehicle architecture increasing model choice meaning there are smaller numbers of larger global players Greater numbers of customers utilising online Customers expect a seamless service across purchasing decisions, financing, and insurance Electronics systems contribute >90% of innovations and new features Timeframe for new vehicle launches is 3–4 years, the cycle for new vehicle software is measured in months The main challenge is that the global automotive market is uneven Trends affecting the automotive industry Increased electronics and software content Increasing regulatory requirements Next generation platforms and platform modularisation Changing face of retail Sales have plunged in Russia – down by 25 percent in August 2014 North America is enjoying robust forecasts of 16 million cars, up from 13 million in 2008 Meanwhile, the Indian market’s performance has been inconsistent Sales have plunged in South America – down by about 15 percent in August 2014 Europe is weaker as the region is emerging from a six-year slump Though the UK bucks this trend – here car manufacturing volumes are on course to break all-time records by 2017 1 And growth in China – the world’s largest vehicle market – has slowed, even though investments by most original equipment manufacturers (OEMs), which are betting big on future demand, continue to ramp up C o n s o l i d a t i o n of s u p p l i e r s OEMs are while meaning common components can be produced in greater numbers, more cheaply
