Industry Expertise

Automotive, mobility and smart transport

Compete as electrification, software and autonomy redistribute value across vehicles, mobility ecosystems and global automotive markets.

The automotive industry is becoming a competition between vehicle economics, software architectures and increasingly different regional models of mobility

We see automotive companies balancing electrification, software-defined vehicles and autonomy with affordability, supply concentration and difficult portfolio choices.

By September 2026, the automotive transition is no longer defined by electrification alone. EV development increasingly intersects with centralized vehicle software, AI-enabled functions and new electrical architectures, while commercially deployed autonomous mobility is expanding in selected markets. These shifts increase dependence on semiconductors, batteries and specialized technology ecosystems even as affordability, tariffs and regional industrial policies influence vehicle economics. OEMs and suppliers must decide where to invest, partner or simplify while managing combustion-era assets and avoiding technology portfolios too broad to fund competitively.

Focus

The car industry is becoming a software and semiconductor industry as well

EVs, software-defined vehicles and autonomy are shifting competitive advantage toward computing, architecture and continuous product evolution.

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Strategic Challenges

Who owns the customer when the vehicle becomes a software platform?

The challenge is moving from one-time vehicle economics toward digital services without weakening affordability or product reliability.

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Strategic Impacts

Software-defined vehicles are changing where automotive value is created

Centralized architectures and remote updates move differentiation from mechanical features toward software, data and digital services.

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Observed Patterns

Automakers often add digital features faster than they simplify vehicle architecture

Software complexity becomes expensive when legacy electronics, supplier structures and development cycles remain largely unchanged.

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Strategic Challenges

Who owns the customer when the vehicle becomes a software platform?

The challenge is moving from one-time vehicle economics toward digital services without weakening affordability or product reliability.

Read now

Strategic Impacts

Software-defined vehicles are changing where automotive value is created

Centralized architectures and remote updates move differentiation from mechanical features toward software, data and digital services.

Read now

Observed Patterns

Automakers often add digital features faster than they simplify vehicle architecture

Software complexity becomes expensive when legacy electronics, supplier structures and development cycles remain largely unchanged.

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Industry Challenge

Automotive players face a simultaneous reset of technology, trade and economics

Automakers are navigating a difficult transition in which electrification, software, tariffs, battery economics and regional industrial policy are changing at the same time. EV demand continues to grow globally, but adoption rates differ sharply across markets, while excess capacity and intense price competition pressure returns. Supply chains remain concentrated in batteries and critical components. The strategic challenge is to decide where to localize, which technologies to own, how to manage mixed powertrain portfolios and where capital can earn acceptable returns as regulation diverges.

Future Outlook

Mobility will converge around software, electrification and autonomous systems

The industry is moving toward vehicles that are increasingly defined by software, connected services, electric architectures and higher levels of automation. Over time, value will shift from the mechanical product alone toward batteries, compute, data, digital services and ecosystems around charging and mobility. Winning will require more modular vehicle platforms and faster software cycles, but also disciplined choices about partnerships and vertical integration. Manufacturers that align product architecture, manufacturing footprint and digital business models will be better able to adapt.

Market Outlook

EV growth remains strong globally as manufacturing and trade patterns diverge

The global automotive market in 2026 is being reshaped by record EV penetration, policy changes and increasingly regionalized production. Electric-car sales exceeded 20 million in 2025 and are expected to keep growing this year, although momentum is uneven across China, Europe, North America and emerging markets. China remains the dominant EV and battery manufacturing hub, while tariffs and localization policies are encouraging new capacity elsewhere. Competitive pressure is intense, with pricing, battery cost, trade access and local scale becoming as important as headline volume growth.

POV

The future automaker cannot remain a hardware company with a software department

As vehicles become continuously updateable platforms, software architecture becomes part of the core industrial model.

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Our approach

Treat automotive as an interconnected technology and industrial ecosystem rather than a sequence of vehicle programs

Our approach� connects vehicle demand, powertrain economics, batteries, software architecture, semiconductors, manufacturing, suppliers, distribution and mobility models. We examine how value is moving across this system and where regional differences change the attractiveness of technologies or business models. Rather than assume one transition pathway, we test portfolio choices across electrification, software and autonomy against affordability, capital requirements and supply dependencies. This helps distinguish strategic capabilities that require ownership from those better accessed through partnerships, platforms or ecosystem relationships.

The data and estimates presented are indicative and intended for illustrative purposes. Actual outcomes may vary based on each company’s specific context, market conditions, operating model, implementation choices, and the quality and consistency of execution, including actions undertaken by the client.

Keypillars

Explore the key pillars that define this capability and shape how we create focused, measurable business impact.

Mobility economics

Examines vehicle economics, ownership models, demand shifts, fleet dynamics, and changing profit pools across the mobility ecosystem

Industry architecture

Connects OEMs, suppliers, software, infrastructure, energy, and service providers across increasingly integrated mobility systems

Technology transition

Tracks electrification, autonomy, connectivity, software-defined vehicles, and intelligent transport infrastructure across the sector

Is your automotive business positioned for an industry where vehicles, mobility and technology are converging?

Get in touch with our Automotive, mobility and smart transport team to address the strategic and competitive shifts redefining the industry.

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Strategic Framework

Explore our Strategic Framework

Autonomous AI agents are changing how work is executed, enabling adaptive processes that respond intelligently to changing conditions instead of following predefined rules.

Discover our framework
01. Map ecosystem

Assess OEMs, suppliers, mobility providers, infrastructure, technology platforms, channels, and customer demand

06. Track transition

Monitor vehicle demand, technology curves, infrastructure, policy, competitors, and consumer mobility behavior

05. Define moves

Prioritize portfolio, platform, partnership, technology, market, manufacturing, and mobility-model choices

01 MAP ECOSYSTEM 02 TRACE DISRUPTION 03 ASSESS POSITION 04 MODEL PATHWAYS 05 DEFINE MOVES 06 TRACK TRANSITION 6 STEPS STRATEGIC MODEL
02. Trace disruption

Examine electrification, autonomy, software, connectivity, regulation, ownership models, and mobility behavior

03. Assess position

Evaluate product portfolio, platforms, technology capabilities, supply dependencies, brand, and geographic exposure

04. Model pathways

Test adoption, powertrain, autonomy, regulation, pricing, infrastructure, and competitive scenarios

How we help

Support automotive companies through portfolio and ecosystem choices as electrification, software and autonomy redistribute value across the industry

We help OEMs, suppliers and mobility businesses assess where future profit pools are moving and what that means for product portfolios, capabilities and capital. Work can address regional strategy, EV and software economics, supplier positioning, partnerships, operating-model change, manufacturing footprints, commercial models and new mobility propositions. We also help companies determine which technologies they need to control, where ecosystem participation is more rational and how legacy businesses should fund or adapt to the transition.

  • Automotive portfolio strategy
  • Electric vehicle strategy
  • Battery value chain strategy
  • Software-defined vehicle strategy
  • Connected vehicle services
  • Autonomous driving strategy
  • Automotive manufacturing transformation
  • Automotive supply chain resilience
  • Vehicle platform strategy
  • Automotive cost transformation
  • Dealer network strategy
  • Direct-to-consumer automotive model
  • Aftermarket growth strategy
  • Mobility services strategy
  • Vehicle residual value strategy
  • Automotive regulatory transition
  • Charging ecosystem strategy
  • Smart transport integration

Explore our FAQs

Find answers to the most common questions about this service, including key features, processes, and practical considerations. Explore our FAQs for additional insights and guidance.

Electrification, software, autonomous systems and new mobility models are changing product economics and sources of differentiation.

Balance demand uncertainty, regulation, platform economics and manufacturing capacity across conventional and electric portfolios.

Value is increasingly influenced by batteries, semiconductors, software, data and services alongside vehicle manufacturing.

Compare demand, trade policy, supply ecosystems, labor and logistics while accounting for costly capacity transitions.

Software can change product functionality, customer relationships and lifecycle revenue while increasing technology and integration demands.

Assess use-case economics, safety, regulation and operating complexity rather than technology capability in isolation.

Portfolio choices, scale, manufacturing efficiency and control of critical technology will shape returns as industry economics evolve.

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