Auto Parts Asia: Cognizant’s Chief Digital Officer of Manufacturing, Logistics, Energy & Utilities, Outlines a Winning Formula for Automotive OEMs

“Today, the automotive industry is undergoing a definite shift in terms of technology, as well as ownership models,” writes Prasad Satyavolu. “While there is a significant increase in autonomous technologies, there is also a noticeable decline in automobile ownership globally, thanks to the benefits of the shared economy.” Excerpts:

“To stay relevant in 2025 and beyond, the automotive manufacturing industry, more specifically OEMs or original equipment manufacturers, should adapt to the evolving trends by focusing on in-transit innovation and purpose-driven design, while transitioning to a service-based business model.

Customers will demand convenience and customization in car design, which will force OEMs to become large scale integrators of different self-contained modules with mechanical features with embedded intelligence. OEMs that do not have an evolving, high-quality offering of semi-autonomous capabilities in the pipeline will quickly lose even their loyal customers to competitors that do.

Consumers worldwide have grown highly comfortable with the idea of sharing rather than owning vehicles. Therefore, OEMs need to embrace flexible business and operating models, and form personal relationships with their customers and partners.

In the face of these trends, the daily commute is fast-changing into an end-to-end mobility experience conducted through a collaborative platform. Players in this ecosystem will need to define their own value proposition and form partnerships to deliver differentiated products and services.”

Click on the PDF to read the full article.