OEMs must construct smaller, more flexible, more efficient organisations in order to react to the changing automotive industry and economic challenges.

This may necessitate a thorough rethinking of the present organizational paradigm, including new organizational boundaries, procedures, and roles. Companies must consider themselves how they would build up their firm today and assess which functions are required at the local market level against which can be centralized to better support local markets. Adopting a zero-based approach might assist firms in focusing on future requirements.

Customers increasingly demand digital experiences from their automobiles, therefore Original Equipment Manufacturers (OEMs) must adapt and develop software-defined vehicles. Despite major hurdles, the benefits of this shift include access to new profit sources.

By 2030, 50% of all vehicles sold in Europe are expected to be Battery Electric Vehicles (BEVs), indicating an unparalleled change in the automotive industry. However, the move to electric cars involves a reconsideration of manufacturers’ and dealers’ traditional sales and after-sales tactics. Failure to do so might result in a large drop in profits of 50 to 60 percent.

Meeting consumers’ mobility demands is no longer enough for OEMs and dealers in the automobile sector, as car purchasers now want more responsible, virtual, and connected customer experiences.