24 Mar Bill Russo Speaks on China’s Automobility Revolution at the European Chamber of Commerce
Shanghai, China, March 23, 2018
Bill Russo spoke to the Auto Components Working Group on the topic of China’s Auto Industry in the Age of Disruption – The Birth of the “Automobility” Business Model on the 23rd of March 2018 at the European Chamber Shanghai Office. Mr. Bill Russo is the Founder & CEO of strategy and investment advisory firm Automobility Ltd and shared his perspective on the future of mobility.
For global automakers and their suppliers, China represents the greatest opportunity for growth in the 21st century. Since 2009, China has been the world’s largest market by volume, and surpassed 28.8 million units in annual car sales in 2017. Over the coming decades, we believe that China will remain the key battleground for dominance of the global auto industry. However, this battle will not be waged using the conventional automotive technologies which have been refined over the past century. We believe several driving forces, which are particularly evident China, have the potential to disrupt the status quo of the automotive industry:
- The unique context of China’s urban transportation challenge, the high penetration rate of mobile internet, combined with the rapid and aggressive introduction of alternative mobility and ownership concepts, are compressing the time needed to commercialize smart, connected car technology and related services.
- The automotive value chain is being disrupted by non-traditional players as they enter and compete to deliver mobility solutions. Disruptive new entrants are utilizing big data to draw insights about customers’ mobility patterns in order to address their “pain points” and offer new solutions for their mobility needs. Such mobility needs are increasingly being met through on-demand and shared services versus individual ownership.
It is the confluence of these forces, along with rapid innovation to address “pain points” associated with mobility in the China context, are positioning China as the catalyst to drive the transformation of the business model and technological underpinnings of the global auto industry.
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