How the Auto Industry is Preparing for the Car of the Future

This podcast has been developed by the McKinsey Center for Future Mobility.

A recent podcast asked two senior McKinsey partners, Asutosh Padhi and Andrea Tschiesner, their perspectives on the car of the future. Highlights from that discussion include: 

Asutosh Padhi: Our view is that the automotive industry will see more disruption in the next ten years than it has seen in the last 50 years. This disruption will be driven by four [trends] that we call the ACES. It stands for autonomous, connectivity, electrification, and ridesharing.

Andreas Tschiesner: Now building on this, while the individual trends are already shaping up the industry, it’s the [convergence] of those four trends that make completely new forms of mobility happen in the future.

We did analysis on how in certain cities – high-income, highly densely populated cities – we will see a future with fully connected robo-cars—robo-cars that are connected to vehicle control centers in the city and are fully integrated into the mobility infrastructure of cities and are really providing completely new forms of mobility.

Asutosh Padhi: All the growth in the future is going to come from the combination of the ACES. It’s new technologies, it’s new business models. If you recognize that, then we would say there’s a few things that they need to consider, which are very different than how the industry has historically operated. 

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