Gone are the days when a select-few OEMs gatekept their technologies behind factory doors. Instead, today’s automotive industry is faced with sweeping innovations, regulatory shifts, and evolving consumer behaviors — often faster than they can keep up.
With this, leaders — automakers, suppliers, and mobility platforms — are going back to the drawing board, reimagining business models, adopting disruptive technologies, and forming strategic alliances with new ecosystem players, like technology providers.
In Frost & Sullivan’s latest suite of analyses, experts reveal growth opportunities stemming from these new mobility dynamics and radical business approaches. A glimpse:
Transformative Megatrends: Capitalizing on the Urban Mobility Revolution
In Asia’s bustling cities ridden with traffic, two-wheelers don’t just outnumber cars, they promise convenience, faster commute, and cost saving. Similarly, bike-taxis are proving to be a lifeline, enabling a cityscape where app-powered AI-supported two-wheelers anticipate demand and blend seamlessly into a sustainable urban fabric.
Innovative Business Models: Leasing in M/HCVs
Leasing models revolutionize the use of medium and heavy commercial vehicles as much as passenger cars. Therefore, in today’s era of fluctuating demand, trade barriers, escalating tensions, and black swan events, leasing is gaining traction, providing flexibility, scalability, and utility for a large base of underutilized vehicles.
Disruptive Technologies: Strategic Developments in ICE Innovations
Amid shifting environmental policies and rising material costs, OEMs are reimagining traditional internal combustion engine (ICE) technologies, and the business models that govern them. Synthetic fuels, hydrogen combustion, and hybrid solutions are emerging as competitive alternatives to bridge the gap between conventional engines and electric powertrains.
Industry Convergence: OEM Entry into Leasing
It was only a matter of time before automakers — recognizing the success of leasing businesses and witnessing declining sales — sought a piece of the pie, transitioning from traditional vehicle sales to comprehensive mobility solutions. This shift not only secures customer loyalty but also enables data-driven insights and recurring revenue opportunities across both passenger and commercial segments.
Read on to explore a selection of strategic imperatives, growth opportunities, and companies to action, from each of these spaces.
You can also directly engage with our experts in a Growth Workshop!
Strategic Imperative 1: Developing Autonomous Bike-taxis for Next-Gen Urban Mobility
Bike-taxis have already made their mark in Asia, but operational costs could drop significantly through automation and smart resource management — creating more affordable offerings for consumers, and more growth opportunities for ecosystem participants.
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Explore strategies for R&D, regulatory compliance, partnerships and commercialization of autonomous bike-taxis.
Growth Opportunity Spotlight:
- Collaborative Infrastructure Projects: Partnering with governments and urban planners to incentivize autonomous capabilities and modernize transport infrastructure, fostering a seamless and sustainable urban mobility ecosystem.
Company to Action:
- Grab: The taxi and food delivery service is leveraging AI and partnerships to optimize service delivery and customer engagement.
Strategic Imperative 2: Sustainable, Data-Driven Leasing Solutions
The regulatory landscape is constantly evolving, impacting safety, liability, and data privacy standards — but logistics companies operating M&HCVs fleets can consider this an opportunity to shift from traditional ownership models to dynamic leasing agreements. Leading players are already harnessing digital platforms that offer predictive maintenance, fleet management, and financial flexibility.
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Discover roadmaps for how logistics, freight, and transportation companies can adopt leasing to maximize profitability
Growth Opportunity Spotlight:
- Predictive Maintenance Solutions: Integrating AI and IoT for enhanced fleet uptime and operational efficiency.
Company to Action:
- Daimler Truck: The company is exploring leasing partnerships with a focus on customer-centric fleet services.
What innovative business models are your leaders and strategists prioritizing to help you achieve competitive success?
Strategic Imperative 3: Shift Toward Synthetic Fuels and Alternative Combustion
Internal combustion engines needn’t have to be phased out — simply reimagined. In fact, synthetic fuels and hydrogen ICE offer lower upfront costs and easier consumer adoption compared to EVs, especially in regions with limited charging infrastructure. For OEMs struggling amid the electrification era, this could prove a shot in the arm.
Want in-depth perspectives?
Discover more such growth opportunities spanning alternative powertrains and synthetic fuels.
Growth Opportunity Spotlight:
- Synthetic Fuel Production: Developing scalable synthetic fuel facilities to meet evolving demand and regulatory requirements.
Company to Action:
- Bosch: The German mobility giant is advancing hydrogen ICE solutions for commercial vehicles.
Strategic Imperative 4: Shifting to Vehicle Leasing as a Strategic Business Model
As global vehicle ownership models shift, OEMs are moving beyond traditional manufacturing and sales to offer leasing services. This transition taps into recurring revenue streams, bolsters financial resilience, and fosters stronger customer relationships in an evolving mobility world.
Want in-depth perspectives?
Understand how OEMs like you can preserve sales and profit from leasing at the same time.
Growth Opportunity Spotlight:
- Digital Ecosystem Partnerships: Partnering with fintech companies, telematics providers, and digital platforms to offer seamless, tech-enabled leasing solutions.
Company to Action:
- Mercedes-Benz Mobility: Despite being a pioneer in premium mobility solutions, Mercedes-Benz is now offering flexible leasing options and subscription-based services
What’s Next for Industry Leaders?
Innovative business models, latest technologies, and strategic imperatives like geopolitics and sustainability — companies that embrace such trends will unlock new growth avenues, enhance operational efficiency, and create competitive advantage., Frost & Sullivan’s growth analyses are the perfect starting point. We not only capture the details and big-picture of the transformation but also chart a course for industry participants to achieve and sustain success.
You can also directly engage with our experts in an exclusive Growth Workshop.
