Future-Oriented Innovation Strategies in Response to the Automotive Industry's Transformation

As of 2023, the global automotive industry is facing a historic period of transformation unlike anything it has experienced in the past 100 years. Technological advancements and shifts in the market are continuously reshaping the form and function of automobiles, and automotive companies are exploring various innovative strategies to survive.

CASE (Connected, Autonomous, Shared, Electric), which has established itself as a major megatrend, is completely revolutionizing the landscape of the automotive industry. Connected technology enables vehicles to link with external services, providing drivers with a customized environment, while autonomous driving technology significantly enhances safety and convenience. Moreover, the proliferation of shared services is shifting the paradigm from vehicle 'ownership' to 'usage,' and the transition to environmentally friendly electric vehicles is accelerating.

Amidst this unprecedented wave of change, automotive companies are striving to enhance their competitiveness through innovative strategies. Specifically, nine strategic positioning options are available: mobility providers, user experience creators, autonomous driving leaders, connectivity leaders, pioneers in the electric vehicle field, platform operators, data/analytics-focused companies, vehicle distribution companies, and lifecycle management companies.

To successfully execute these innovative strategies, clarity in value proposition to customers, a focus on developing core competencies, and differentiation within the value chain are essential. Furthermore, localizing existing business models and strategic alliances with collaborative partners will also be crucial factors in determining success.

Meanwhile, high-performance batteries and high-efficiency motor systems are attracting attention in the development of next-generation automotive technologies. It is expected that significant improvements in driving range and efficiency will be achieved through enhancements in battery energy density and rapid charging capabilities, as well as optimization and lightweight design of motor systems. In particular, all-solid-state lithium-ion batteries and integrated e-axle motor systems are garnering attention as core technologies that will lead next-generation electric vehicle technology.

However, securing a stable supply of key raw materials such as lithium, nickel, and cobalt used in batteries and motors is emerging as a major challenge. This is because most of these materials are currently dependent on overseas sources, leading to risks of soaring raw material prices and supply disruptions. As a result, developing alternative materials and securing resource recycling technologies are urgently needed.

Along with the development of eco-friendly technologies, the introduction of CO2 reduction manufacturing processes and improvements in environmental performance throughout the product lifecycle are also emerging as important tasks for automotive companies. Ultimately, more proactive efforts will likely be needed to achieve carbon neutrality by 2050.

Over the next 5 to 10 years, the automotive industry is expected to undergo the most significant period of upheaval in its history. Automotive companies must prepare for this upheaval through various innovation strategies spearheaded by CASE, and they must dedicate themselves to developing next-generation mobility technologies and establishing sustainable business models.