Rising to the challenge of zero-emission transportation

OEMs face an unprecedented challenge in 2020. The COVID-19 outbreak demands precautions and social distancing which will deeply affect the automotive industry. Our global customers are experiencing difficulties that influence their daily operations as well as their long-term business strategies.

However, in a recent study by MSX Research regarding consumer behavior during the COVID-19 outbreak, 50% of respondents said they would still service their vehicle if it was due. Similarly, 41% said they would still consider buying a new vehicle despite the outbreak, proving that manufacturers still have a responsibility to deliver a positive service to their customers.

Despite these challenges, manufacturers must also continue to prepare for the inevitable transition to low and zero-emission vehicles. A complete overhaul is needed, not just to products and the way consumers identify with them, but to entire operations.

Governments are enforcing emissions targets, but it’s crucial the infrastructure is in place to support electric vehicles (EVs) and hybrids, and that the changes are viable for consumers.

Meanwhile, OEMs must be able to develop desirable and affordable vehicles while sustaining profits in sales and aftersales. Dealerships too need to continue protecting their existing businesses while exploring new opportunities for growth, finding new revenue streams and embracing digitalization in place of traditional models.

The April 2020 issue of Benchmarker explores the current impact of EVs on the industry, and, through the knowledge of some of our experts, speculates on possible outcomes for the future. We examine how EVs are affecting sales and aftersales services, and what it means for parts profits. We look at the effects of EVs on the warranty business, how manufacturers will have to train dealer staff and technicians, and how retail networks can prepare. We also hear from some of our leaders on the status of EV transition in some of the most influential markets.

There’s no doubt that this transition will be challenging. Some markets have surged ahead, investing heavily in EV infrastructure and providing incentives to help drive sales. But manufacturers will have to work hard to sustain business success.

At MSX, our mission is to support our customers in navigating the challenges ahead. We can, and will, support the industry across many business functions – even remotely as this period dictates. Our team members are committed to providing you with high-quality services and solutions independently of their physical location. Rest assured, we are working tirelessly to ensure your new business needs are met, so thank you for your continued trust. We will face these challenges together.

Patrick Katenkamp
CEO, MSX International