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In California alone, 50 companies have a permit to test in California. Out of this 50, 10 are Chinese and just under 10 are European. It means that all of the testing knowledge is getting accumulated in the US because regulations in Europe have been much slower to adapt. However, we are seeing regulations in China beginning to change, which should begin to attract companies looking to test autonomous vehicles in China later this year or early next year. The investment rules are changing The calculus of where to invest is changing.

I think that fundamentally changes how auto makers and the rest of the industry allocate investment budgets, particularly when these auto makers and suppliers are already developing many of the technologies that underpin mobility as a service, autonomous driving and vehicle electrification. For example, there has been a lot of technology investment based on the status quo of one to one owned vehicles which can also be applied to shared vehicles in the future.

But the sheer pace of change within the industry is accelerating and the agility that companies need to be able to stay on top of it and not fall behind highlights how complex the challenge is from an investment perspective. So partnerships, investing in disruptive technology at an early stage, investing in suppliers and developing closer partnerships within the supply chain to develop those solutions will become a more important focus of any investment program.


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  • Jeremy Carlson: If we look at mobility as a service, regulation can certainly shape how the different business models evolve, particularly in terms of ride hailing with individual drivers. Certainly, we can see most markets have been pretty aggressive in trying to control different independent drivers engaging in these services and we do expect that to have an impact on how different mobility services progress. But the automotive industry is already very heavily regulated, especially in terms of passenger safety and security.

    These specialists range from robotics experts, cloud architects and even developers in the gaming industry, which shows the diversity of skills now required in the automotive sector. How quickly and efficiently the automotive sector copes with incorporating the required IT skills into a predominantly. As well as demand and supply, investment in education, the ability to transfer existing skills, as well as recruiting from the non-automotive sector will all ensure that the industry meets the sheer numbers and level of skills required?

    However, pressure on employment costs and the push for further collaboration and partnerships to up-skill the existing and new workforce will prove challenging. Will we see new skill sets emerging and how will the industry plug any gaps in the short to medium term? We have an example of Volkswagen looking for a thousand specialists in Wolfsburg, Germany alone.

    So we cannot only see how IT skills are vital, but we also see how IT skills needed are changing. We can also see this on the non-tech side where skills on evaluating and creating new business models for the automotive industry is increasingly important, whereas in the past the focus was much more on continuously improving margins and processes.

    So we are seeing how skills across the board are changing due to new mobility models. But as Christian says, looking forward there will be more and more focus on software rather than the engineering side. We already have a lot of movement with new players coming into the industry, as well as working with technology that is constantly evolving to cope with the new mobility market needs.

    Finding people with the right skills will become increasingly challenging when taking into account the sheer numbers of IT experts required. Looking forward, employment costs could be an issue. Egil Juliussen: Yes. The biggest requirement will be for software skills and there is already a shortage, particularly in the field of cybersecurity.

    If you look at all start-up companies in the autonomous driving and mobility service sector they are nearly all based in the US with China a strong second. There are a few in the UK and a couple in France. But I think the challenge will become much more acute due to how much of the vehicle will be software defined in the future. Does this herald a higher concentration of players in the mobility sector in future?

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    Christian Back: In Europe we see a lot of providers in the ride hailing and car sharing segment, which I think is very typical for a young and new market. But my expectation is that we will see market concentration within these segments further down the line. Egil Juliussen: I think it will depend on how mobility evolves, as well as how much influence there is from regulators. We are likely to see between three to five major players as well as a number of niche players focusing on specialized areas.

    But much will depend on whether cities start to exert control as they do in the mass transit sector. In which case there may well be a higher concentration of providers. Egil Juliussen and Jeremy Carlson, updated on 26 Sept While competition is going to be important, I certainly would expect some consolidation in future.

    Management

    With increasing signs that a shift from traditional powertrains towards electric and hybrid alternatives is underway, Louis Burns, Partner at Mazars looks at the sustainable mobility challenges the industry now faces and how paying closer attention to consumer behaviour can help manage the risks involved. Of course, if we take a look at overall car sales, ULEVs still make up only 4.

    So while indicators are pointing firmly in the direction of where the future of the automotive industry lies, the debate on how it gets there and how long it will take is currently concentrating the minds of OEMs and suppliers alike. A sustainable mobility model that enables movement with minimal environmental impact requires a much greater level of collaboration between a wider range of stakeholders that not only includes commercial partners, but also environmentalists, government bodies, town planners and local communities.

    While these working relationships help the automotive industry understand policies that will impact decision making on powertrain development, plant design and location, relationships with the end consumer are generally focused on the pre-purchase and purchase phase.

    Electric Mobility in Last Mile Distribution | ewumulitox.tk

    But by paying closer attention to consumer behaviour across the whole lifecycle of the car buying process, deeper insights can be gained that add value to the development of a sustainable mobility strategy. Rather than paying for an additional car that is used infrequently, consumers are killing two birds with one stone by assessing car hire and shared ownership options to contain costs and help reduce air pollution.

    More importantly, such trends open up doors to create or improve synergies between the automotive industry, car hire firms and car sharing platforms. Yet with consumers looking for a more fluid relationship with car ownership, plug and play systems that are intuitive and able to accept the widest possible range of consumer devices will become increasingly important when it comes to vehicle choice. Ease of use and increased access to charging stations in major locations will help increase consumer confidence in low emission vehicles.

    Combined with government subsidies, promotional offers on low emission vehicles such as cash rebates, a lower finance rate or special lease terms by car manufacturers and dealers have an important role to play in the consumer decision making process. Improved and continual financial incentives can help reach the critical mass needed to push sustainable vehicle sales further into the mainstream.

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    Feeding such insights on consumer behaviour through to the CFO and finance department can help formulate spending and investment budgets, as well as design and integrate sustainable development strategies. Taken into consideration alongside government policies, regulatory guidelines and global environmental plans, such insights can help the automotive industry manage financing and working capital arrangements more efficiently to give them a competitive edge?

    Importantly, it can help manage the many risks and challenges involved as the industry moves to a global sustainable mobility model. As the decision making process becomes more complex and the number of stakeholders involved increases, the industry has to have a clearer understanding of customer needs and behaviours across the lifecycle, not just during the purchase phase if it is to develop relevant and compelling sustainable mobility choices.

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    It is assumed that the current licensed car stock 2,, will grow at a constant growth rate of 1. The ICE-EV current ratio is taken to be equivalent to the amount of electric car stock outstanding in as by International Energy Agency to total number of cars. A ratio of 4 users is taken to calculate the cost per user, keeping charging costs equal, for a Shared EV 4-wheeler. Cost of public transit is taken to be GBP 0. China is powering ahead of other countries in developing a sustainable shared mobility market.

    Despite the current domination by a small number of companies in this space, there will always be room for niche services that cater for a particular market segments or exploit the growth in passenger experience innovation. But companies that have the technical capabilities alongside expertise in data management and governance going forward will have more of a competitive edge as expected tougher regulations kick in. Despite current high market concentration in China, which business model holds the balance of power when it comes to mobility solutions is far from clear cut.

    There are intermediaries such as Didi who aggregate data to act as a link between providers of cars, bikes, taxis etc. Then there are providers such as Mobike which manufacturers the majority of the distinctive orange bikes on its platform to capitalize on the growth of on-demand bicycle use.

    While there is the undoubted power of data, there is also control and expertise in the manufacturing process. Both use technology in different ways, but there are service synergies which more recently has seen Didi sign partnership agreements to help OEMs market auto-sharing services and electric vehicles.

    Either way, forging the right partnerships with a shared vision will continue to be key. However, with EV development very high on the agenda for the Chinese Government, there is still potential to create a globally recognized Chinese brand in this fledgling sector. Government regulations that ensure a certain percentage of car manufacturing in China are EVs are already filtering through to share mobility platforms where EVs are increasingly the norm.

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