Automotive EMEAR in 2015Current Trends and a road map to the future for theauto industry in EMEAR

Michael Klemen

Vienna March 2015

Member of the Board BMOE

Germany

3,0

France

1,9

UK

2,0

Italy

1,4

SPIG

0,8

AT CH

0,7

Benelux

1,0

Nordic

0,8

New EU

0,6

Mio Cars 1 2 3 4

20 Year low 20 Year highEuropean Registration

Variance 1991-2013Peak and Low End marks

2012

2012

2012

2012

2012

2012

2012

2012

2012

2013

Source: Eurostat, ACEA, CISCO EBG, Jan2014 New EU= Bulgaria, Czech Republic, Estonia, Hungary, Latvia,

Lithuania, Poland, Romania, Slovakia, Slovenia / SPIG= Spain,

Portugal, reland, Greece / Benelux= Belgium, Netherlands,

Luxemburg / Nordic = Sweden, Denmark, Norway , Finland / AU

CH= Austria, Switzerland

Benefit / Years

to mainstream

Less than 2

years

2 to 5 years 5 to 10 years More than 10 years

Transformational • Cloud Computing

• Vehicle information Hub

• Autonomus Vehicles

• Internet of Things

• Vehicle-to-Vehicle Communications

• Virtual Personal Assitants

• Vehicle-to-Infrastructure

Communications

High • Gesture Control

• Mobile Device Integration into

Cars

• NFC

• Remote Diagnostics

• Augmented Reality

• Automotive HMI Technologies

• Car-Sharing Services

• Consumer Telematics

• Context Brokers

• Embedded Software and Electronics Design

• HTML5

• Individual Mobility Services

• Open Automotive Alliance

• Over-the-Air Software Updates

• Real-Time Parking

• Electric Vehicles

• Electro Mobility

• Hydrogen Fuell Cell Vehicles

• In-Vehicle Ethernet

• Public Telematics and

Intelligent Transportation

Systems

Moderate • Bluetooth in Automotive

• Commercial Telematics

• Navigation Solutions

• Satellite Digital Radio

• Automobile eCall

• Automotive Speech Recognition

• Fleet Vehicle Tracking

• Genivi Alliance

• Internet Radio

• Traffic Data Services

• Wi-Fi in Car

• Advanced Driver Assistance Systems

• Car Connectivity Consortium

• Eye-tracking automotive

• Haptics in Automotive

• Head up displays

• Hybrid electric vehicles

• In-vehicle Occupants Health Monitoring

• LBS in Automotive

• Mobile Advertising

• Mood Recognition

• Usage-based Insurance Solutions

• Electric Vehicle Charging

Infrastructure

Low • Terrestrial Digital Radio

Source: McKinsey 2015

SourceDBResearch

2015

Source KPMG 2015

Emerging markets.

• What’s the strategy for China as annual sales there increase to 30 million vehicles a year by 2020 and its aftermarket blossoms?

• How to respond if competition in China becomes too intense?

• Which other emerging markets demand the focus now?

Demand constraints.

• To what extent do our future growth plans incorporate the shifting attitudes of younger consumers toward car ownership, the impact of rapid urbanization, and efforts to fight congestion and other regulatory trends that could constrain demand?

Ownership models.

• How could developments such as car sharing change who purchases our vehicles, how they are used, and when people and organizations buy them?

Source: McKinsey 2015

Competencies and distinctions.

• What’s the plan for sourcing the digital talent they need?

• How can they ensure that the soul of the car, as reflected in our brand, endures—even as theofferings become more digital and more autonomous?

Connectivity.

• What value can they contribute and capture in an environment of increasingly networked mobility?

• What killer applications are needed and can be delivered to meet growing demand for integrated transportation, active safety, and seamless communication?

Mandated standards.

• What technology portfolio (engines, energy sources, and lightweight materials) will best address increasingly stringent emissions and fuel-economy requirements around the world—and still keep customers in different segments and geographies happy? Source: McKinsey 2015

Engaging the public.

• As the scope of regulation expands beyond well to wheels and as debates about congestion, pollution, carbon emissions,and safety intensify, how can they contribute to or manage the dialogue?

• How can they best ensure a fair hearing for the social and economic benefits of mobility and an equitable distribution of regulatory burdens across the value chain?

Source: McKinsey 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

Source: KPMG 2015

• The global connected car market will grow, but overall car life cycle revenues are expected to remain stable.

• Connectivity may trigger a significant redistribution of all major automotive revenue pools except car operations.

• The human-machine interface, car condition data, and dynamic real-time geoinformationwill become the key control points in the redistribution of profits.

• Car connectivity will require fundamental changes to some of the core processes of automotive OEMs as well as new partnerships.

• After 2020, (semi)autonomous driving will trigger the next wave of disruption with profound impact on the automotive industry.

• In general, these developments in the field of connectivity hold true on a global level; however, we also see significant regional differences in terms of customer needs and concerns.

Source: McKinsey 2015

Source: McKinsey 2015

Source: McKinsey 2015

Source: McKinsey 2015

Source: KPMG 2015