Today’s car buyers expect their vehicles to be like their smartphones: cutting-edge, connected, and easily updated. Technology now permeates our lives like never before and has transformed our approach to roads and urban mobility. Accelerated by the pandemic, digitization initiatives are changing our approach to mobility services, and businesses must be able to adapt to meet new demands.

“Most of these mobility service companies and car-sharing companies were offering ride-sharing services where you could share the ride with the unknown person sitting next to you. Now, with such a big risk of infection, there is a question mark on these services and there is a shift away from carpooling or ride-sharing services and car-sharing or any kind of shared mode of transportation.”

- Vivek Vaidya, Associate Partner, Frost & Sullivan

No aspect of the mobility industry has remained untouched by the COVID-19 outbreak. Services capable of maximizing their capacity while still adapting their fleet to minimize occupancy and focusing on safety, security, and cleanliness through contactless mobility can help rebuild trust with consumers.

The pandemic will also hasten the demand for increased in-vehicle infotainment and other connected driving products and services, as consumers remain cautious in making big-ticket purchases and look to reduce person-to-person interactions.

Cyril Leman (above) is HERE Technologies’ Global Automotive Product Marketing Lead.

As such, digital solutions will be the way forward for the automotive industry. The change in consumer behavior and perspective impacted by the pandemic – the decline of ridesharing, interest in short-term car ownership, digital retail, and more – will provide key areas that OEMs can explore to conquer the challenges posed by the pandemic. Digital is the way forward.

When considering Asia Pacific as a mobile-first region in most markets coupled with avoidance of physical contact being the key driver moving forward, growth areas for the automotive industry include:

Rise of location-enabled companion apps for remote vehicle management
Growth in connected commercial fleet segments to support last-mile deliveries
Uptake in vehicle subscription services versus long-term ownership

“In Singapore, where customers don't want to own the vehicle, they have the option of getting a subscription on a weekly or monthly basis. Connected cars are what makes it possible to build a completely new market space around customers, by making personalized location-based offers by receiving real-time and ongoing customer usage data.”

- Marina Arbuzova, Head of Product Marketing, BMW Thailand

The new normal has made way for an on-demand digital era where the consumer expects in-car connected services, personalized digital experiences, and remote connection. Automakers need leverage on technology to optimize all areas of the driver journey, while considering areas they can expand into to better serve a post-pandemic world.

“One thing is very clear: digital technologies will play a humongous role going forward. OEMs need to be very well-prepared to adopt these technologies and values, including contactless services, digital payments, and somewhere to monitor or manage your car remotely.”

- Santhosh Vasanthakumar, Senior General Manager, Mahindra Electric Mobility

For further information on how digital technology can help the automotive industry weather and thrive in the new normal, download the full ebook here.