The Top 3 Disruptive Trends Impacting Automotive Sales

According to leading analysts and consulting firms, vehicle sales are lagging in major markets around the world. And in a recent Gartner survey, 35% of automotive CIO’s listed their top priority as growing their market share and sales (Gartner, 2017).


While the traditional car-making business won’t be going away anytime soon, it’s important that the industry recognize and prepare for certain trends now so they can capitalize on the diverse revenue pool emerging (which McKinsey estimates could create up to $1.5 trillion in additional revenue potential in 2030).


Below I have summarized the top disruptive trends impacting the automotive industry:

1. The Connected Car - Gartner forecasts that “by 2020, there will be 220 million connected vehicles globally, roughly a quarter of all vehicles in the world” (Gartner, 2017). What does this mean for the automotive industry? A lot. From unprecedented new business opportunities to “digitally upgradable” cars with shorter life cycles, CIO’s will not only have to prioritize smart mobility and data security, but they will also have to prioritize new business models which take into account the many new data points that connected cars will be able to provide.


2. Global Politics and Expanding Regulations - recently stated that “the biggest immediate threat to the auto industry is coming in the form of volatile global politics that are spurring major changes in global trade policy” (, 2017). With so many fluctuations and changes related to the Trans-Pacific Partnership, the North American Free Trade Agreement, and Brexit, regulatory actions or sudden shifts in policies have become very unpredictable. On top of this, a movement toward stricter emission regulations is increasing momentum for electric vehicles. Forbes recently reported, “US auto manufacturers have finally realized that they will need to have significant numbers of electrically powered models if they want to sell cars in China, the largest market in the world” (Forbes, 2018).


3. Rise of Transportation Services - According to KPMG, “Consumers are behaving differently around cars. They use technology to order rides rather than own cars” (KPMG, 2017). And with a steady influx of vehicles from services like Uber and Lyft across all major cities in the US, this trend doesn’t seem to be slowing down. Just this month Forbes reported that the automobile, once the second-largest purchase a person will make, is now something that many millennials seem to have little interest in purchasing, because they believe “why buy and own when you can have mobility on-demand?” (Forbes, 2018). While New York City just became the first major American city to halt new vehicle licenses for ride-hail services, it’s yet to be seen whether or not this policy will stick (and whether it will have a positive impact on the automotive industry).


While any one of these three trends is daunting enough on it’s own, the three together paint a very disruptive picture. But the good news is that there is still enough time to prepare for these emerging disruptions. To help out, CCH Tagetik recently created a solution guide for executives and finance teams which details a strategy to prepare for these emerging markets.


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