By Joni Paiva, Divisional Vice President, Africa, Middle East, India, and Oceania region at Nissan Motor Corporation
Stepping into a new fiscal year provides an opportune moment of reflection for automotive players to consider the current state of the industry, while setting sights on goals for the coming years. Yet, “What’s next?” is a complex question to answer – and one that cannot be addressed in isolation. The past two years in particular have demonstrated how the automotive sector’s second major revolution has been driven by three factors – customers, manufacturers, and markets.
We have seen each of these factors independently demonstrate their influence – empowered customers continue to impact business decisions, car manufacturers have embraced agility to enhance their product and service offerings in real time, and markets are making serious future-focused mobility and sustainability commitments. However, the evolution of the mobility ecosystem relies on these factors working in tandem towards a progressive, connected future. While mega-trends like electrification and autonomous driving continue to top the list of buzzwords associated with the automotive industry, they require closer introspection to be put into actions that deliver true impact.
Here’s a look at trends currently shaping the industry and what automotive brands can do to make the most out of them:
- The auto industry’s relationship with sustainability has seen a massive shift this year – and we expect it to continue. We have seen OEM’s, energy partners and governments alike move beyond passive acknowledgement to solid sustainability commitments in the past year, with some already taking initial steps to put these plans in motion. For example, Nissan announced its goal for carbon neutrality across the company’s operations and the life cycle of its products by 2050 – and has since backed this up with sizeable investments at a company level as well as within Alliance 2030 with Renault and Mitsubishi Motors. It is no longer enough to simply reiterate the importance of decarbonization – customers want to see companies put their money where their ambition is.
Conversations around sustainability are also increasingly moving beyond emissions to encompass a more holistic view – from the design and engineering stages, through to manufacturing and shipping, how vehicles operate, how they are serviced, and what happens to them after their lifecycle. This is in line with emerging consumer trends around conscious consumption and demand for mobility solutions that support the communities they live in. Car companies will therefore need to continue re-evaluating and redesigning their processes to better establish automotive circularity.
- The road to sustainability is electrified. While this is hardly a new development, electrification has received a recent surge that’s impossible to ignore – with global EV sales expected to grow to 11.2 million in 2025 and reach 31.1 million by 2030[1]. While still considered an aspirational purchase, brands like Nissan are leading the charge in EV affordability and accessibility for all – having already successfully demonstrated this with the LEAF, and building on this legacy with the introduction of 23 new electrified models (including 15 new EVs) by 2030. Nissan is also accelerating electrification by investing €15.6 billion over the next 5 years, adding to existing investments of €7.8 billion.
Alongside ramping up EV production, car brands need to also look at innovating existing drive systems and powertrains. This ties back to sustainability efforts, as well as educating customers about the benefits of EVs while offering a smoother transition to electrified products. At Nissan, we are seeing this approach work successfully with e-POWER, our 100% electric motor-driven system offering the same high-performance driving experience as an all-electric car, without the need to charge.
These product and technology innovations need to be matched at a market regulation level through cross-industry collaborations, public-private partnerships, and supportive policy frameworks and incentives. Furthermore, to facilitate long-lasting shifts in consumer behaviour – all these initiatives need to be underlined with consistent efforts to drive awareness about EVs amongst the general public – addressing range anxiety, cost parity and other potential barriers to adoption.
- Intelligent cars are on the rise. While the production of cars decades ago mainly focused on key functional elements such as the engine, suspension, and wheels; there is now an equal emphasis on ‘the brain’ of the car. Automotive brands have firmly moved into the automotive technology space, attracting innovative talent and emerging start-ups. We will see this trend intensify in the years to come with tech integration capabilities playing a major role in setting car brands apart from the competition. The aim is to elevate the traditional transport-focused role of a car into an integral part of people’s digital life – especially for a growing base of tech-savvy customers.
The rise of intelligent cars will focus on establishing new relationships with the car’s underpinning capabilities and technologies, offering seamless driver-vehicle interactions. We are also already starting to see driver assistance technologies like Nissan’s ProPILOT and autonomous driving no longer limited to luxury brands, but also integrated into mass-market automotive options.
- Customer-centricity still holds the key. With on-the-go, on-demand convenience becoming the norm, people now have zero tolerance for friction. Consumers are not just using different routes to engage with a brand, but are more likely to switch brands if they don’t get a consistent experience across channels, and abandon their shopping journey if faced with even the slightest of delays in the purchase process.
It is therefore essential for auto brands to continuously innovate and optimize its services in order to drive omnichannel customer journeys and facilitate impactful engagement across physical and digital touchpoints. We see that our showrooms continue to play an important role for car purchases even as more people now begin the discovery and consideration phases on our Shop@Home online platform. It is therefore vital to leverage technology in a way that empowers customers to take ownership of their shopping journey, and seamlessly transition across online and offline at their convenience.
Buckle up, it’s going to be a thrilling ride. The availability and adoption of advanced technologies are transforming how cars are made, powered, and integrated into society. With many macro-economic and industry changes impacting the industry all at once, OEM’s need to stay agile to keep up with the pace of the ongoing automobile revolution. It’s a fine line to tread – as innovations need to address global challenges and respond to customer needs, while maintaining economic viability and decreasing pressure on existing supply chains.
Car brands will need to take a holistic and guided approach to their mobility transformation – they will be held more accountable by industries and consumers alike, and will need to deliver greater efficiencies while future-proofing their businesses to be more resilient. How brands take charge of the next few years will set them up for an exciting new chapter for the industry. At Nissan, we’ve always embraced challenges and dared to do what others don’t – and we can’t wait to discover “what’s next” for mobility.
[1] https://www2.deloitte.com/uk/en/insights/focus/future-of-mobility/electric-vehicle-trends-2030.html
