Top Five Trends in Automotive and Mobility

April 2025

This report highlights key trends in the global automotive and mobility sector in 2025. Rising geopolitical tensions and trade disruptions create more uncertainty for businesses and disrupt supply chains, encouraging production network changes. To deal with uncertainty and erosion of consumer spending power, companies will need to focus on affordability, resource sharing and creation of new revenue streams.

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This report comes in PPT.

Key findings

Changing trade landscape to impact supply chains

Rising geopolitical tensions and US trade policy changes will significantly impact the automotive industry in 2025, with potential profit margin drops of up to 30% due to higher import tariffs. Short-term fixes to maintain market share and long-term production localisation will be crucial to mitigate these effects.

Market changes to drive growth of affordable EVs

Rising costs and economic uncertainty will make affordability a critical factor in EV purchases, with 60% of consumers citing high costs as the main barrier to purchase. Rising competition from China will also pressure Western companies to offer more affordable models or risk losing market share.

Meeting stricter regulations will remain among priorities

Stricter emissions regulations, such as the EU's 2035 ban on internal combustion engines, will drive the automotive industry’s push towards net-zero emissions. Early adaptation and supply chain improvements will be crucial for survival and market advantage; otherwise, companies risk steep fines.

Subscription services to remain under radar

The subscription model remains a novel sales concept in the car industry; however, a changing consumer base is likely to create stronger demand for such services. If companies manage inventory levels well, subscription services can unlock new and more stable revenue streams.

Shared mobility providers to capitalise on AI

The rise of multimodal mobility platforms, driven by urbanisation and AI integration, is forecast to accelerate over the next five years. Shared mobility companies are expected to develop super apps that promise to solve last-mile transportation issues and offer new revenue streams through data monetisation and dynamic pricing.

Our expert’s view of automotive and mobility in 2025
Key findings
Automotive faces slower growth while shared mobility market continues to boom
Top five trends in automotive and mobility
Top five trends uncovered
Supply chain resilience will be among the top priorities from 2025 onwards
Case study: Hyundai invests in US onshoring to create localised supply network
Case study: GM leans on extensive supplier network and experience to minimise risks
Collaboration and resource sharing can ease the pain of supply chain restructuring
Rising cost of living and influx of cheaper alternatives drive focus on affordable EVs
Case study: Hyundai launches trade-in programme to make EVs more attractive
Case study: Volkswagen plans a range of affordable EVs
Offering attractive price and financing deals can help to withstand Chinese competition
Meeting stricter environmental regulations will be critical for the industry’s survival
Case study: LG collaborates with Ford to support electrification efforts
Partnerships with tech companies can ease supply chain redevelopment
Younger consumers are forecast to drive stronger demand for subscription services
Case study: GM is using a subscription model on connected vehicle features
Case study: Honda and Sony collaborate to offer new mobility solutions
Subscription services can help car companies to create more stable revenue streams
Ongoing urbanisation and AI to shape the shared mobility market
Case study: Grab implements AI solutions to streamline mobility services
Companies must prepare for stricter regulation, but potential gains are significant
Future implications
Opportunities for growth
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