MOBILITY SERVICES:THE CUSTOMER PERSPECTIVE5 challenges for auto manufacturers, as seen by customers Copyright © 2019 Accenture. All rights reserved. 1CONTENTFIVE CHALLENGES NOW AND FOR THE FUTURE#1 BRAND STRENGTH #2 VEHICLE OWNERSHIP#3 SERVICE MONETIZATION#4 CITY VS. COUNTRYSIDE#5 IN-CAR PERSONALIZATIONRESEARCH & SUMMARYTEAM & CONTACTSCopyright © 2019 Accenture. All rights reserved. 235 CHALLENGESNOW AND FOR THE FUTUREThe potential in mobility services is unparalleled and exciting, but despite all the attention there remain many misperceptions about what customers really think and want. Based on our results and region-specific insights, weve set out to review 5 key challenges for OEMs (Original Equipment Manufacturers) and auto executives around the globe. 3To shine a light on the customer perspective, weve conducted a comprehensive, demand-led survey encompassing over 7,000 respondents in the US, China and Europe. 21Copyright © 2019 Accenture. All rights reserved.CHALLENGE #1Copyright © 2019 Accenture. All rights reserved. 4#6#105#1 BRAND STRENGTH ANSWER:Today, OEMs are able to realize significantly higher price points than competitors due to their brand. In a service future however, the importance of the brand will erode significantly if nothing changes.Note: The drop in importance is smallest for premium customers in China (from 2nd to 4th place). Here, brands will still have a central role to play in (premium) car sharing.For non-premium car ownersacross the US, Europe and Chinathe brand will only play a minor role in car sharing.Of the sixteen criteria (which included price, speed, flexibility, comfort, environment, and privacy, among others) our respondents overall see the brand as the 6th most important factor for buying a carbut only the 10th most important factor for car sharing.IS BRAND STILL ROSY OR IN THE PAST? It depends on customer type, and countryheres why.Copyright © 2019 Accenture. All rights reserved.6All OEMsFocus on the core criteria for your car sharing services and make sure the brand represents all of them: China: Safety, car performance, price EU: Price, safety, flexibility / availability US: Price, safety, convenienceOUR RECOMMENDATION:ACT NOW TO REPOSITION YOUR BRANDOEMs need to act now and use their (sales-) reach to reposition their brand.Premium OEMs in ChinaDevelop the brand as a Mobility-as-a-Service status symbol.Non-premium OEMs Option 1: Broaden the scope of the brand from car ownership to other fields such as service offerings and lifestyle products. Option 2: Become the leader for new mobility brands (focus on Europe and US, since in China the competition is already very strong).ALLCopyright © 2019 Accenture. All rights reserved.CHALLENGE #2Copyright © 2019 Accenture. All rights reserved. 78#2 VEHICLE OWNERSHIPANSWER:OWNERSHIP OR PAY-AS-YOU-GO, WHO WINS?Most people expect that they will own a car in the future, but when asked to imagine an autonomous vehicle future many are also ready to give up ownership.According to our survey of 7,000 respondents, half would consider giving up car ownership in favour of using autonomous mobility solutions. But this varies greatly depending on country, and category of user.The transition from car ownership to Mobility-as-a-Service seems inevitable. The risk of losing customers to new mobility service providers is high once they establish mature service offers.The key is to identify future value pools and calculate the investments that are necessary to tap into them: Is it worth it to keep trying to sell vehicles to customers who are ready to jump into services altogether while risking losing them to service providers?PREMIUM CAR OWNERSNON-PREMIUM CAR OWNERSUSEUROPECHINA39%55%78%21%41%69%Share of respondents that would consider giving up ownership for autonomous mobility solutions.Copyright © 2019 Accenture. All rights reserved.9Premium OEMsSince the existing customer base in the premium segment is more willing to give up ownership in all markets, the urgency for action is higher here.OUR RECOMMENDATION:START POSITIONING MOBILITY SERVICES AS A VALID ALTERNATIVE TO CAR OWNERSHIPOEMs need to finally fully embrace alternatives to the ownership model instead of just experimenting with them if they dont want to lose the grasp on their customers. OEMs in ChinaYou need to act now and aggressively push alternatives to ownership since a vast majority of customers is already willing to substitute ownership for service models.OEMs in the USFor most US customers, the ownership model is not in question as of yet. OEMs can in large parts continue to cash in on sales and aftersales margin for a foreseeable time and follow the Chinese market at a later point in time.Copyright © 2019 Accenture. All rights reserved.CHALLENGE #3Copyright © 2019 Accenture. All rights reserved. 10