Evolving Dynamics in the Luxury EV Space will Push OEMs to Look into Innovative Integration of Services and Experience as a Revenue Stream in the Future
Stringent emission regulations have pushed luxury OEMs to electrify their offerings to adhere to the standards. Although battery electric vehicles and plug-in hybrids are being touted as sustainable alternative transportation solutions, low adoption can be attributed to lack of consumer awareness and common misconceptions about electric range and e-technology.
While a set of tech savvy consumers and green environmentalists are the early adopters, OEMs need to offer more than a product to attract consumers across varying demographic segments. Moreover, the luxury space is evolving more rapidly than its internal-engine powered counterpart owing to the influential impact of the ACEC trend.
The future of luxury automotive banks on the Autonomous, Connected, Electric, and Shared Mobility (ACES) trend. Automakers are ever agile in the space of luxury electric cars, integrating next-gen technological features owing to the support of autonomous, connectivity, and mobility trends.
Automakers are embracing these trends and luxury electric vehicles are undergoing a major transformation in terms of features and branding. On the autonomous trend front, luxury OEMs will be subjected to a first wave of application of inductive charging and business models based on in-car experiences. But the impact on connectivity and HMI innovations is vital for brands looking towards differentiating themselves.
AI-based personal assistance and AI-based proactive navigation to eliminate range anxiety and optimal use of battery charge will be a few examples of features included in the car. With regards to HMI, intuitive touch-based systems are set to become a norm. Women-centric designs will also be in the radar of premium makers, especially in the SUV segments.
In the prospect of autonomous shared mobility economy only 2 distinctive segments will survive—premium and low cost. Therefore, it becomes essential for OEMs to look beyond the product and lean on customer experience (CX) to not only better enable a sustainable revolution but to also diversify their offerings to stay ahead of the competition.
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