DIGITAL AUTO REPORT 2021 - ACCELERATING TOWARDS THE "NEW NORMAL" VOLUME 1 - PWC STRATEGY
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Digital Auto Report 2021 Accelerating towards the “new normal” VOLUME 1
Volume 1
Assessing global mobility
market dynamics
• Market outlook – penetration of technologies and mobility types
• Technology – shifting gears in connected, electric, automated
Digital Auto Report • Customers – changing mobility preferences: everything-as-a-service?
• Regulation – slowdown or acceleration of key policies?
2021 – Volume 1 Volume 2
Capturing value with new
mobility business models
✓ Tenth annual Digital Auto Report,
developed by Strategy& and PwC What to offer and how much to gain?
✓ Global consumer survey with a focus
on the US, EU and China (n = 3,000)
plus new view on Japan (n = 1,000)
✓ Quantitative market outlook up to 2035, Volume 3
based on regional structural analysis Building software-defined
✓ Interviews with industry executives at vehicles and services
OEMs and suppliers, and with leading
academics and industry analysts How to build up required capabilities?
Strategy& | PwC
Strategy& 2
2
The mobility ecosystem is entering a new normal world,
with different adoption patterns and use cases by region
Executive summary – Volume 1
In the “new normal” world, two themes are having a major impact on auto executives’ strategy with regard to connected, electric, automated and smart mobility –
1) rising market attention on decarbonization / sustainability and 2) competitive pressure from maturing digital disruptors / “new kids on the block”.
97% of Chinese consumers want to change their mobility behavior to improve their CO2 footprint – vs. 70% in Germany and 52% in the U.S.
Switching to an electric vehicle is the preferred measure for achieving this goal in China and in the US, while Germans would like to do more walking / cycling.
In light of the ongoing pandemic, demand for public transport and shared mobility remains low – about half of the survey respondents (n = 4,0001) say they use
those modes less often than pre-COVID; ~30% of Germans / Americans now want to use their own vehicle more (59% in China).
Total vehicle parc projections up to 2035 see a stagnation in Europe2 (-0.6% p.a.) and Japan (-0.9% p.a.) – vs. marginal growth in the US (+1.3% p.a.) and
stronger growth in China (+3.9% p.a.); driven by 1) growing mobility demand, 2) customer preferences for own car and 3) vehicle disposal rate.
Vehicle connectivity is advancing, with 50% of total parc connected in Europe by 2025 (US by 2023, China by 2029). While OEMs are reaching a critical size with
their connected service customer base, they still struggle with reliable service delivery at scale (over-the-air update functionality).
E-mobility is at an inflection point in Europe, driven by a strong government drive (incentives and regulations), with 27% BEV share of new car sales in 2025 –
ahead of China (19%), US (6%) and Japan (5%). Slow charging infrastructure build-up will soon become the biggest growth hurdle.
Automated driving outlook is similar to previous year: in passenger transport, the technology will penetrate the market with a range of specific use cases that are
difficult to scale – L4 share of new cars at 14-15% by 2035 in Europe / China / Japan; industrial / logistics applications likely to grow faster.
Despite consumer reluctance to share vehicles or rides during the pandemic, smart mobility modes beyond vehicle ownership are expected to grow in the long term.
With rising number of car-subscription offerings, shared-active (e.g. rental, subscription) is expected to grow strongest in Europe (10% of total person kilometers by
2025), while shared-passive (e.g. ride-hailing) is expected to grow significantly more in China (10% vs. 1-3% in US and Europe).
Conclusion: differentiated view on CASE strategy and investment priorities is crucial for maintaining “license to operate” and creating value in automotive.
(→ covered in upcoming report volumes 2 and 3)
1) n= 1000 GER; 1000 US; 1000 CN; 1000 JP – focus in respective section on GER; US; CN 2) Europe refers to EU 27 + Norway + Great Britain + Switzerland within this report
Strategy& Note: Please refer to respective section for detailed assumptions and sources behind stated propositions 3CASE themes continue to
drive the automotive
transformation – Connected Electric
Electric currently has
greatest impact”
Automated Smart Mobility*
*Smart Mobility describes a transportation ecosystem where stakeholders use data and
connectivity to move people and goods sustainably and efficiently.
Shared mobility remains as a sub-segment and an important value pool in this ecosystem
focusing on people transport with passenger vehicles.
Strategy& Source: Strategy& 4As the mobility ecosystem adjusts to the new normal, many auto players will need to reboot their CASE strategies Consumer Technology Connected Automated Consumer spend Flex-work is here to With increasing digital Consolidation of ADAS reaching pre-COVID stay, pushing demand service portfolio and players; OEMs review levels; preference for for remote tech; chip functions-on-demand their partners; L4 people own (EV) car vs. public shortage unlikely to be now available, car OS movers and robotaxis in transport remains high resolved before Q4-21 becomes top priority trial mode everywhere Regulation Economics Smart mobility Electric EU/US decarbonization As auto toplines recover, Preference for private Public incentives and measures accelerate; CEO attention is shifting modes has paused growing model choice rising attention on from liquidity towards smart mobility growth, has boosted EV demand; (open) data, privacy sustainable growth but cities encouraged to tipping point is near; infra- and cybersecurity investments run new transport trials structure next bottleneck Strategy& Source: Strategy& 5
Sustainability has become a major driver for change in auto
2021 Highlight I: Sustainability
Sustainability transformation drivers CASE implications
Public perception Regulation Net zero CO2 pathway Capital markets • More holistic view on ESG forces
players to re-evaluate measures
• Customers demand • EU taxonomy and ESG • Portfolio shift towards • Booming demand for ESG – from drivetrain to cyber/data
genuine ESG1) actions reporting standards sustainable vehicles investment classes
• Connected: Emission reductions
• Employer brand to meet • Compliance system to • Invest balance of “old” • Growing relevance of top via predictive driving/analytics,
ESG talent expectations fulfill new regulations, (e.g. EURO7) vs. “new” ESG rating positions but pressure on sustainable high-
e.g. on cybersecurity tech (e.g. cell production)
• Higher transparency on • Maturing ESG investor tech production
social responsibility • Recalibration of KPI • Decarbonization of full reporting and changing
along supply chain, systems to ESG topics, product lifecycle OEM equity story • Autonomous: Emission
e.g. for battery materials e.g. for executive pay including supply chain efficiency via optimized driving,
but growing energy consumption
for data compute
73% … of customers want to 41% … Ø Zero Emission €1T …EU Green Deal funding, €120bn
change their mobility Vehicle sales required for of which sustainable All-time high inflows in Q1/21 • Smart: Environmental benefits
behavior to lower CO2 CO2 compliance in 2030 mobility is a central pillar for EU sustainable funds2) from multi-mode mobility, but
emissions (plus 18% vs. Q1/20) overall higher mobility demand
as urban populations gain wealth
86% … of employees prefer Nr.1 55% …reduction in passenger 6/10
…barrier to ESG … of best-performing
to work for firms that
effectiveness is the lack car emissions by 2030 funds in EU were related • Electric: Zero emission vehicles,
care about the same
of reporting standards (EU Green Deal) to ESG in Q1 2021 but need for sustainable battery
issues they do
production and recycling
1) Environment, Social and Governance 2) Morningstar – European sustainable fund flows Q1 2021
Strategy& Source: PwC and Strategy& analysis 6New entrants redefine the rules of the automotive value game
2021 Highlight II: New kids on the block
Build and run Supply Design and Retail Finance Operate Retail mobility
infrastructure components build vehicles vehicles vehicles fleets and services Selected key facts
Traditional OEMs Illustrative
~45%
New Kids (charging, vehicle, service) 1 Overall profit expected to be
generated from software in 20251)
$199
2 Tesla’s monthly subscription price
for full self-driving capability2)
1 2 3 4
Value chain coverage Recurring sales Efficient production Lean portfolio
• Revenue generation • Instead of selling • Software-defined • Lean portfolio with 2024
along entire value one-time vehicles or vehicles replace the various software 3 Year in which BEV will achieve
chain and especially services, new entrants traditional monolithic upgrade possibilities production cost parity with ICE3)
from software (from sell recurring OEM lifecycle • Fewer chassis, body
charging infrastructure
to mobility services)
mobility services
and subscription
• Chassis and body
change less frequent
and interior selection
possibilities
~11+ vs. ~7
4 Average model runtime years
based products while software is (package-based) Tesla Model S vs. traditional OEM
updated much more models
quickly
5
$99bn
5 Raised via automotive SPACs
Ease of capital raise (e.g. through SPACs) in 20204)
1) UBS Research – EV operating profits 2) IHS Markit 3) CMBI – NEV Sales April 2021 4) SPAC figures display cash made available trough SPAC; not post-SPAC valuation
Strategy& Source: Strategy& 7Acceleration of technology penetration will occur at varying
times and speeds globally, as local mobility is transformed
Key considerations for anticipating tipping point of exponential technology adoption
Technology Consumer Regulation Economics Expected tipping points
• Connected service • “Digitally savvy” share of • Scope and timing of • Indirect value capture by
content and UX population enforced connectivity OEM
requirements
• Vehicle system/EE • “Freemium” segment • Effective end consumer
architecture services • Scope of data sharing and pricing
Connected privacy restrictions
earlier 2030 later
• Network infrastructure
• Battery and powertrain • Premium/early adopter • Emission target levels • Superior total cost of
performance segment size ownership (TCO) of BEV
• BEV/PHEV incentives vs. ICE in relevant number
• EV manufacturability • “Rational green” segment
and production capacity size • Diesel/ICE bans/ of segments
restrictions in cities • Additional revenues/ earlier 2030 later
Electric • Charging infrastructure savings from V2G/V2X
charging
• ADAS capability by use • Premium/early adopter • Scope and timing of • Superior TCO vs. non-AV
case segment size enforced ADAS safety in first commercial cases
features
• Data processing • Technology openness • Additional value capture
• Geographic range and from riders
• Driver UI earlier 2030 later
Automated quantity of AV test drive/
• Network and traffic vehicle approvals
infrastructure
• Smartphone penetration • Intermodal openness • Private car restrictions/ • Superior TCO vs. own
taxes vehicle
• Access and fleet • People/traffic density
availability “Frequent user” segment • Passenger transport • Dynamic pricing for opt.
size regulation use and availability earlier 2030 later
Smart
Mobility
ADAS = Advanced Driver Assistance Systems; EE = Electric/electronics, V2G = Vehicle to grid, TCO = Total cost of ownership
Note: A tipping point is defined as the start of exponential growth within a segment of the mobility transformation
Slow down Acceleration
vs. 2020 vs. 2020
Strategy& Source: Expert interviews, PwC AutoFacts®, Strategy& 8Total car parc growth strongest in China; electric forecast up
from last year’s prediction; automation notable only after 2025
Total vehicle parc and technology penetration of new car sales (in million, %)
New LV sales 317 332 350
308 294 281 289 310 302
(million) 272 250 34
206 31
15 17 17 17 17 17 17 18 64 60
Total LV parc 24 28 68 68
(million) 4 4
5 5
100% 100% 100% 100% 100% 100% 100% 100% 88% 100% 100% 89% 100% 100%
Connected 44% 52%
(eCall, % new LV sales)
78% 44% 55% 45%
Electric 50% 33%
27% 19% 19% 10%
9% 2% 6% 6% 1% 5%
(BEV, % new LV sales)
34% 29%
20% 29% 12% 16% 15%
Automated 6% 11% 4%
0% 4% 3% 0% 1% 0%
(L3/L4/L5, % new LV sales) 2021 2025 2030 2035 2021 2025 2030 2035 2021 2025 2030 2035 2021 2025 2030 2035
Strategy& Source: PwC Autofacts®, Strategy& LV = Light Vehicles = Cars + Light Commercial Vehicles < 6t GVW BEV = Battery Electric Vehicle ICE = Internal Combustion Engine 9Every second vehicle on EU/US roads will be connected by
2025 – China/JP follow later due to less regulatory pressure
Total vehicle parc and connected car share (in million units, %)
350
332
317 308 310
294 302
281 289
272
24% 250
49% 31% 206 72%
52% 35% 56%
70%
79% 92% 33%
93%
68 68
12% 21% 64 60
42% 74%
2021 2025 2030 2035 2021 2025 2030 2035 2021 2025 2030 2035 2021 2025 2030 2035
Connected Vehicles Non-Connected Vehicles Source: PwC Autofacts®, Strategy&
As the number of connected cars increases, more OEMs will be able to offer
over-the-air updates (OTA) and other features for greater consumer
Strategy&
convenience, however security and data protection remain important concerns. 10While BEV penetration in EU has accelerated faster than
expected, China leads in total volume; Japan/US much slower
New vehicle sales by powertrain (in million units scaled to 100%)
15 17 17 17 17 17 17 18 24 28 31 34 5 5 4 4
3% 2% 2% 6% 1% 6% 5% 1% 5% 3%
9% 1% 19% 2% 19% 10%
7% 27%
1% 33%
50% 44% 6% 45%
9% 55%
7%
78% 1%
97% 92% 92% 99% 95%
84% 16% 89%
80% 74% 9% 26%
64% 60%
54%
34% 32%
13% 26%
6%
2021 2025 2030 2035 2021 2025 2030 2035 2021 2025 2030 2035 2021 2025 2030 2035
FCEV BEV PHEV ICE (incl. HEV) Source: PwC Autofacts®, Strategy&
The recently announced EU Green Deal seeks a 100%
reduction in CO2 from 2035. Similar announcements
from other countries are expected in the next few years.
Strategy& 112021 has seen first deployments of L3 and L4 around the
world, but relevant share of >20% expected only after 2030
New vehicle sales by SAE level (in million units scaled to 100%)
15 17 17 17 17 17 17 18 24 28 31 34 5 5 4 4
4% 7% 1% 5% 2% 1% 1% 4% 6% 1%
14% 11% 1% 14% 8% 3% 15% 15%
13% 9%
14% 18% 12%
100% 96% 97% 94% 100% 99% 100% 96%
88% 84% 89% 85%
80%
71% 66% 71%
2021 2025 2030 2035 2021 2025 2030 2035 2021 2025 2030 2035 2021 2025 2030 2035
L0-2 L3 L4 L5 SAE = Society of Automotive Engineers Source: PwC Autofacts®, Strategy&
ADAS players will strive in the coming years for selected, feasible automated
driving applications in transport/fleets and logistics/industrial areas to recover
investments – Germany first to pass national law for automated vehicle use.
Strategy& 12Preference towards shared mobility still varies across the
major markets; EU/Japan expected to lead by 2035
Market penetration by mobility mode (in ‘000 trillion person-kilometer scaled to %)
4.9 5.1 5.3 5.4 5.8 6.1 6.4 6.7 8.8 10.4 12.2 13.8 0.9 0.9 0.9 0.9
6% 2% 1% 2% 1% 2% 1% 2% 1% 2% 1% 3% 2% 7%
2% 10% 9% 2% 10% 2% 11% 2% 12% 2%
3% 16% 21% 7% 14%
5% 11%
7%
92% 97% 97% 97% 97% 97% 94%
87% 89% 88% 87% 86% 86%
79% 75%
72%
2021 2025 2030 2035 2021 2025 2030 2035 2021 2025 2030 2035 2021 2025 2030 2035
Shared active Shared passive Private active/passive
[e.g. car sharing, rental] [e.g. ride hailing, (robo-)taxi] [e.g. own vehicle] Source: PwC Autofacts®, Strategy&
Despite demand shock for shared mobility due to COVID-19 in 2020/21,
long-term outlook remains positive – driven by a growing number of sharing
options on multi-mode transport platforms and increasing regulatory pressure
Strategy&
for private car ownership, in particular in European and Japanese cities. 13This report series is laid out in three volumes 1) CASE drivers,
2) economic opportunities, and 3) capability implications
Volume 1 Volume 2 Volume 3
Consumer Technology Regulation Economics Capabilities
Connected
Automated
Opportunity Build-up
sizing and and
Smart Mobility investments partnering
Electric
Strategy& 14Image to be updated
Volume
Strategy&
1 Assessing global mobility
market dynamics
15Digital Auto Report 2021 – Volume 1
Consumer Technology Regulation
Connected
Consumers are seeking
convenient and safe Electric
mobility – private
transport modes remain Automated
important in 2021”
Smart Mobility
Strategy& Source: Strategy& 16Consumer – Overview
Latest consumer attitudes within CASE are reflected in a
survey of 3,000 respondents in Germany, US and China
Overview consumer survey
Key results
3 14
1. Remaining % up to 100% “not specified”/ “do not wish to 3,000
regions questions respondents • Order of preferences of connected services remains
answer” stable – safety and navigation still most important
• Willingness to pay for on-demand car functions much
n = 1,000 n = 1,000 n = 1,000 higher than for connected services
• PHEVs and BEVs are most preferred type of powertrain
Gender 51 49 44 56 50 50
(%) only in China; Hydrogen gains popularity in Germany
• Insufficient driving range and concerns about charging
Age
options put respondents off driving electric cars
33 35 33 29 26 45 33 33 33
(%)
18-34 35-54 55+ • Respondents indicate lower trust in the use of
automated cars compared to last year’s survey
Household • High willingness to pay for automated driving among
9 23 27 11 6 6 10 18 15 10 7 13 16 41 23 12
income those respondents who do trust the technology
(%, gross 43
monthly) 10T USD
• Moderate intention to purchase a new or used car,
Occu- but car subscription models gaining traction
8 55 13 6 10 4 43 14 6 19 26 40 29 1
pation
(%) 3 3 11 • Even as immediate COVID-19 risk declines, using one’s
Pupil/Trainee/Student Self-employed Unemployed own car remains most popular while costumers are
Worker/employee Civil servant Without occupation reluctant to use shared and public transport
Strategy& 17Consumer – Connected
Order of preferences for connected services remains stable
– safety and navigation still most important
Connected services – By importance for consumers
Question: “Which connected
69% 66% 97% service categories are
Safety
particularly important to you?”
71% 62% 94%
Navigation
Vehicle 34% 47% 87%
management
On-demand 62% 57% 81%
car functions
Infotainment/ 35% 38% 68% Safety and navigation still
Enterntainment most important feature for
respondents across all regions.
Mirror smart- 41% 44% 70%
phone in car
With lifestyle and comfort
Lifestyle and 19% 46% 87% features, OEMs mainly
comfort
attract Chinese consumers.”
2021 2020 2021 2020 2021 2020
Strategy& Source: PwC Strategy& consumer research 2020; n=3,000 (1,000 DE, 1,000 US, 1,000 CN); PwC Strategy& consumer research 2021; n=3,000 (1,000 DE, 1,000 US, 1,000 CN) 18Consumer – Connected
More than 2 in 3 respondents are willing to pay for connected
services; but respective amount varies greatly between regions
Connected services – Average willingness to pay1)
Ø Willingness to pay (annual) vs. Reference prices of other digital & media services
…for a “full set” of connected Music Adobe Home internet
services in the vehicle subscription2) Photoshop with premium/
license Sport TV3)
$ 180
$ 142 $ 338 $ 1,300
at 69% willingness
Acceptance of paying at all for
$ 148
$ 120 $ 250 $ 1,200 connected car services has increased
at 62% willingness across regions
However, there are strong differences
in perceived value among consumers
$ 524) – Chinese are willing to pay least for it,
$ 28 $ 138 $ 520 while consumers in US/Germany are
at 94% willingness prepared to pay a sum comparable to
a music subscription.”
Strategy& Source: PwC Strategy& consumer research 2021; n=3,000 (1,000 DE, 1,000 US, 1,000 CN) 1) Local currency conversion to USD 19
2) For GER and US “Individual” plan Spotify, for CN Kugou Music VIP membership 3) For GER Sky, for US Xfinity; for CN Tencent 4) PwC Strategy& consumer research 2020: n=1000 CNConsumer – Connected
With first on-demand functions becoming available, GER/US
users rate air conditioning/headlights/engine power highest
On-demand car functions – Importance for consumers
Air condition
activation
67% 78% 86% Question: “How important
would be on-demand car
Advanced headlight
functions/performance
59% 60% 70% function [...] to you?”
Extension of battery
56% 59% 90%
range (e.g. +80 km)
Seat heating
49% 43% 56%
activation
Increase of engine
45% 64% 79%
power (e.g. +50 hp)
Traffic jam pilot 43% 33% 84%
Particularly basic functions like
Parking pilot 28% 23% 81%
air conditioner activation
Automated valet ranked most important,
24% 17% 69%
parking whereas sophisticated
functions like parking pilot or
Ø annual willingness automated valet parking do not
to pay1) for car that $ 675 $ 760 n/a yet seem very important – at
offers a full set of least in Germany and the US.”
multiple on-demand at 60% at 45%
car functions willingness willingness
Strategy& Source: PwC Strategy& consumer research 2021; n=3,000 (1,000 DE, 1,000 US, 1,000 CN) 1) Local currency conversion to USD 20Consumer – Electric
>50% of US and Germany consumers retain strong preference
for ICE – even young segments; Chinese prefer PHEV/BEV
Preferred type of powertrain/engine by age (%)
Question: “Assuming you would
Gasoline Diesel Gasoline Diesel Gasoline Diesel Age segment
buy, lease or subscribe to a
40 23 Σ 63 59 10 Σ 69 21 2 Σ 23 18-34 years passenger car, what type of engine
ICE – would you like?”
Gasoline 30 22 Σ 52 52 6 Σ 58 22 Σ 22 35-54 years
& Diesel
31 20 Σ 51 51 4 Σ 55 17 1 Σ 18 >55 years
PHEV BEV PHEV BEV PHEV BEV
11 13 Σ 24 13 16 Σ 29 40 36 Σ 76
US consumers retain a strong
PHEV preference for ICE (55-69%) followed
16 15 Σ 31 18 19 Σ 37 34 41 Σ 75
& BEV by Germany (51-63%), while Chinese
15 11 Σ 26 23 18 Σ 41 32 47 Σ 79 clearly prefer BEV/PHEV (75-79%).
Despite the common image of being a
climate-aware generation, younger
11 2 1 segments in Germany and US have
– +
clear preference for ICE.
H2 O2
Hydrogen 17 3 3
Hydrogen gains popularity in
21 4 3 Germany – likely due to increasing
press coverage and public debate.”
Strategy& Source: PwC Strategy& consumer research 2021; n=3,000 (1,000 DE, 1,000 US, 1,000 CN) Percentages may not total 100% due to rounding 21Consumer – Electric
Range anxiety and charging options are major obstacles to buy
an electric car – price is less of an issue, in particular in China
Deterring factors using an electric car
Question: “What is holding you
back from choosing a car with an
electric powertrain?”
78%
73%
66%
60% 58% 59%
56%
53%
36%
28%
25%
13% In Germany and the US, insufficient
driving range with one battery charge
is the biggest deterrent, whereas
Chinese respondents raise concerns
about whether there is sufficient
charging network coverage.”
Insufficient driving range Concerned about sufficient Relatively high Limited choice and
with one battery charge charging options/stations purchase price availability of cars
Strategy& Source: PwC Strategy& consumer research 2021; n=1,897 (645 DE, 677 US, 575 CN) - respondents who are not interested in electric cars 22Consumer – Automated vehicles
Trust in automated cars is not growing – and has even
declined in US and Germany from last year
Automated driving – Consumer attitudes and usage of time gained
Question: Would you personally use a fully
autonomous car? 62% 62%
55% 57%
52% 51%
would 14% 18% 45%
use AV (36%) (38%)
Top 3 39% 39%
39% activities to
would use
AV only at 24%
(59%) use within
18%
low speed/ (28%) (26%)
time gained
parking (% of
respondents)
Media and Relaxation Work and Relaxation Media and Work and Relaxation Media and Social
enter- and productivity and enter- productivity and enter- exchange
tainment recovery (e.g. email) recovery tainment (e.g. email) recovery tainment (e.g. video
48% (e.g. video (e.g. sleep) (e.g. sleep) (e.g. video (e.g. sleep) (e.g. video conferen-
would 64% (32%) streaming) streaming) streaming) cing)
62%
not use (36%)
(36%)
AV
14% In general, willingness to use fully automated cars has
(9%)
declined, especially in Germany and the US. Trust in automated
driving is seen as susceptible to change, and consumer
attitudes might fluctuate rapidly as critical headlines emerge,
(xx %) = Previous year's values
e.g. following accidents and cybersecurity threats.”
Source: PwC Strategy& consumer research 2020; n=3,000 (1,000 DE, 1,000 US, 1,000 CN);
Strategy& PwC Strategy& consumer research 2021; 1st question n=3,000 (1,000 DE, 1,000 US, 1,000 CN); 2nd question n=1604 (383 DE; 356 US, 865 CN) 23Consumer – Automated vehicles
High willingness to pay for automated driving experience
among respondents who would use a fully automated vehicle
Automated driving – Willingness to pay
Question: “When using car
sharing or ride hailing, what would Premium Premium
be the extra price you would be
ready to pay to get an autonomous
10 3€ 10 4 $ n/a
Base price Base price
car driving you around?”1)
84% 79% 98%
willingness willingness willingness
USD
0 16% 21% 2%
7.1T 3% 4% 3%
Source: PwC Strategy& consumer research 2021; 1st question n=198 (57 DE, 141 US) , 2nd question n=1604 (383 DE; 356 US; 865 CN) respondents who would use an AV
Strategy& 1) Extra-price you to pay for a 5 km/ 3 miles ride (knowing the amount for a traditional car is 10 EUR/ 10 USD/ 40 CNY) 24Consumer – Smart Mobility
More than 40% of respondents want to purchase a new or used
car in next 1-2 years; subscription models attracting attention
Likelihood to buy/lease/subscribe to a car
Question: “How likely might you or
your household purchase, lease, or
subscribe to a passenger car in the
44% 44% 63% next one to two years?”
Purchase of
a new car
47% 41% 40%
Purchase/ lease
of a used car
As the economic impact of COVID-19
Lease of a 20% 15% 31% appears to be more predictable in
new car Germany, the intention to get a car grew
in that country compared to last year’s
survey.
Subscription
of a car 14% 15% 44%
Subscription is gaining in popularity –
in China, it is seen as more attractive than
leasing; in US it is on a par with leasing,
Likely/very likely and in Germany its popularity is clearly
growing (14% vs. 8% last year).”
Strategy& Source: PwC Strategy& consumer research 2021; n=3,000 (1,000 DE, 1,000 US, 1,000 CN) Difference to 100%: no/low likelihood 25Consumer – Smart Mobility
Even as immediate COVID-19 risks decline, own car remains
popular as people shy away from shared and public transport
Mobility pattern after COVID-19 restrictions (%)
Question: “COVID-19 has temporarily
changed our mobility behavior in many
aspects. How do you plan to use modes
Own
bike
19 49 31 8 39 53 26 34 41 […] of transport once we have left the
pandemic behind us?”
By foot 20 67 12 9 49 43 32 41 27
Own car 27 64 9 31 64 5 59 29 12
Public
7 40 53 3 33 64 16 37 47
transport
Own car is still seen as the safest and
Shared
micro- most convenient means of
3 14 83 3 22 76 19 35 47
mobility transportation – and therefore has the
(e.g. scooter)
highest increase in demand, in particular
Car-
sharing
5 18 77 2 37 61 11 31 59 in China.
Taxi,
4 20 76 3 32 66 15 38 46
Across all regions, consumers plan
Uber, …
reduced use of shared modes as well
as taxi and ride-hailing – even after
More Same Less/not at all the pandemic.”
Strategy& Source: PwC Strategy& consumer research 2021; n=3,000 (1,000 DE, 1,000 US, 1,000 CN) Percentage may not total 100% due to rounding 26Consumer – Smart Mobility
Respondents want to contribute to CO2 reduction – mainly by
switching to an electric car or more walking/cycling (in GER)
Top-3 contributions to CO2 reduction
Switch to an
electric car
Short distances more Question: “What major personal
often on foot/ by bicycle Short distances changes would you like to do to
more often on
61% contribute to a reduction in CO2
Delete foot/ by bicycle emissions?”
completely of 45% Switch to an
electric car
short-haul
flights 26% 60%
30%
18% 49%
22% Short distances
more often on foot/
Switch to an by bicycle Use public
electric car 12% transport more
Use public frequently
transport more
High willingness to contribute to
frequently CO2 reduction, esp. in China (97%)
Do
and in Germany (70%) whereas
3%
nothing US respondents are less willing
30% (52%).
48%
52%
Main contributions will be short
70% distances more often on foot/by
Change 97% bicycle, or switching to an
behavior
electric car.”
Strategy& Source: PwC Strategy& consumer research 2021; n=3,000 (1,000 DE, 1,000 US, 1,000 CN) 27Consumer – Smart Mobility
Price and availability are by far the top drivers for increasing
the use of sustainable transport
Factors encouraging sustainable transportation modes
Question: “What would encourage
you to use sustainable transportation
(e.g. bike sharing, car sharing, public
55% 63% transportation) more frequently?”
35% 59%
27% 44%
39%
37%
23% 17% 16%
20%
17% In Germany and the US, cheaper
8% prices are most likely to encourage
6% respondents to use sustainable
transportation.
Chinese respondents, meanwhile,
Cheaper price Incentives by the employer Family offers
(e.g. job bike, car sharing (e.g. 4 bikes for the price of 2, ...)
focus on better availability.”
benefit package, ...)
Better availability User-friendly access
(e.g. more bikes) (e.g. cashless payment via app, ...)
Strategy& Source: PwC Strategy& consumer research 2021; n=3,000 (1,000 DE, 1,000 US, 1,000 CN) 28Consumer – Connected, Electric, Automated, Smart Mobility Japan
Contrast: Japanese consumers display varied preferences –
skeptical towards BEV, but open to AV and car subscriptions
Key highlights from Japanese consumer survey
Connected Electric Automated vehicles Smart Mobility
“How important would be on- “[…] what type of engine would “Would you personally use a fully “How likely might you purchase,
demand car function [...] to you?” you like?” autonomous vehicle?” lease, or subscribe to a car?”
Gasoline Diesel
Extension of battery
range (e.g. +80 km) 76% ICE – 51 9 Σ 60 Purchase of
Gasoline would 31% 29%
Advanced headlight 31 7 Σ 38 a new car
functions/performance 76% & Diesel use AV (26%)
23 4 Σ 27
Traffic jam pilot 68% PHEV BEV Purchase / leasing
of a used car
35%
Air condition
67% 19 14 Σ 33 would use
activation
PHEV 40 14 Σ 54 AV only at 41%
Increase of engine and BEV low speed/ (37%)
66%
power (e.g. +50 hp) 35 26 Σ 61 parking Leasing of a
new car
22%
Automated valet
parking 49%
3 18-34 years
Parking pilot 47% would (xx %) =
1 35-54 years 28% Subscription
– +
Hydro- not use Previous 21%
Seat heating
H2 O2
AV (37%) of a car
43% gen 2 >55 years year's values
activation
Different order of preferences Gasoline still most preferred In contrast to other countries, Lower intention to purchase/
of on-demand car functions in type of engine among youngest positive development compared lease new/used car than in other
Japan from other countries – respondents. However, esp. with previous year – Japanese countries. However, subscription
extension of battery range is rated PHEV most popular among respondents gaining trust in AVs is gaining interest when
most highly, along with advanced 35-54 and 55+ year old compared to last year´s survey
headlight functions/performance respondents (15%)
Strategy& Source: PwC Strategy& consumer research 2021; n=1,000 JPN BEV = Battery Electric Vehicles AV = Automated Vehicles 29Digital Auto Report 2021 – Volume 1
Consumer Technology Regulation
Technology progresses fast Connected
– software-defined vehicle
architecture and chip Electric
shortage most pressing
topic in 2021” Automated
Smart Mobility
Strategy& Source: Strategy& 30Technology – Connected
Enabling connected services will become the make-or-break
factor for OEMs in the coming years
Connected services
Still in its infancy
Data/Insights Services 5th Screen Services
Vehicle optimization • Connected car services have the
Value added services potential to transform the driving
Cloud-supported vehicle analytics experience and to unlock new
Access to value-added services
and optimization of configurations revenues streams for OEMs
and revenues
Visibility • After initial hype, however, OEMs
Vehicle-Centric Today Beyond Vehicle have lessened their focus on
Connected Services Services connected services. Available vehicle
functionality is largely in its infancy
Automated driving Fleet management
• New entrants are likely to enter the
Cloud-supported situation Support of fleet management and automotive market and differentiate
analytics and driving assistance tracking services themselves with new cloud-based
services and an ability to adapt
Secure software update Navigation and traffic information
vehicle software on demand
Over-the-air update to elevate
2015 2020 Time Access to up-to-date navigation • First movers will set the standard for
functionality and fix issues and traffic information future connected car technology and
revenue models
Alarming and assistance Drive efficiency and safety • Traditional OEMs need to reconsider
Vehicle Features as a Service strengthening their commitment so
Automatic notification in case of Information exchange between that they can transform their vehicle
severe accidents or vehicle issues Feature activation road users and infrastructure and cloud platforms swiftly, and
Dynamic activation/ deactivation provide the foundation and scale for
of paid add-on services future growth
Strategy& Source: Strategy& 31Technology – Connected
For connected services, OEMs are currently rethinking their
build vs. buy strategy on key technology components
Connected service components of a software-defined vehicle
Enabler Hardware Software Data / Integration Content/Service Sales and CRM
Plan – Build – Ship – Update – Sunset
Key value Hardware and electronics Vehicle OS and Automotive Security and Offering bundling and
blocks Cloud infrastructure Vehicle services and apps
architecture Automotive cloud platform Compliance pricing
Communication Integrated Circuits and Vehicle OS and Data Analytics, Privacy Cloud/hybrid services incl. User identification and
technology (5G, V2x) Semiconductors Automotive cloud platform and Ethics vehicle health services personalization
Terrestrial and satellite I/O devices (e.g., sensors, Secure Over-the-Air User interface and 3rd party content and
Customer support
communication networks displays) Update management controls services
Current • Regional regulations • Transformation of E/E • Software capabilities • System test capabilities • Data ownership • Customer access/
• Cybersecurity concerns architecture • Development processes • Decision on closed vs. • Revenue models identification
limitations
• MNO costs • Semiconductor • Cybersecurity open systems • Data privacy
availability regulations • Certifications
Current • Buy into cellular and • Development of own/ • Development of own • Increase in automated • Expansion of cross- • Centralization of sales
develop- satellite networks tailored semiconductors software stacks test and compliance industry and technology processes
• Build-up of cloud/edge • Modular and • Build-up of own app processes alliances • Cross financing/
ments infrastructures expandable hardware stores • Build-up of own data/ subscription contracts
architectures analytics platforms
Source: Strategy&
Strategy& V2x: Vehicle-to-everything I/O: Input/ Output E/E: Electric/Electronic HW: Hardware SW: Software Crucial value blocks 32Technology – Electric
Technology progress in e-mobility must be evaluated in the
context of tech trends across various alternative powertrains
Alternative powertrain developments
– +
ICE PHEV BEV H2 O2 FCEV
Internal combustion engine Electric drivetrain (electric motor, inverter, transmission) Fuel cell system
Efficiency improvement Cost reductions
Electrification Stack
Recuperation and boost as standard Silicon carbide power semi- Bar windings and increased notch Increased integration of
conductor switches (inverter) filling degree in electric motor Increase of power density
features with 12V (budget) or 48V inverter and motor
Optimization of catalyst
Increased electrification of auxiliaries
compositions (reduction of Pt)
(water/oil pumps, cam phaser, etc.) High voltage system and architecture and nano-scale microstructure
P2 topology avoiding drag torque Architecture Auxiliaries Optimization of bipolar plate
coatings
Reduction of friction losses Integration of power-units Top models up to 800 V, Increasing commoditization
(OBC, DCDC, DC charger) standard in volume 400 V of electrified auxiliaries
Coatings and microstructural
modifications on cylinder Balance of plants
Optimization of crankshaft bearings HV battery system Stack internal humidification
Ball bearings for turbocharger and simplified water mgmt.
System design Cell innovation
Structural integration of System design Increased cell capacity through larger cells
Combustion/emission optimization housing into vehicle body incl. recyclability Tank
Cathode cost reduction by minimization of cobalt
Increasing injection pressures (cell-to-vehicle) Optimization of fiber winding
content and cobalt-free cells (e.g. iron-phosphate)
Variability in valve trains layout and process
Dry (solvent-free) processing of electrode coatings
Particle filters for most powertrains Mixed materials to reduce
Increased anode energy density via silicon
including DI gasolines costs
Intrinsic safe cells by application of solid state
Variable compression ratio through Compressed H2 as standard
variable connection rod electrolytes (polymers, inorganics, blends) for passenger vehicles
Strategy& Source: Strategy& 33Technology – Electric
By the end of the decade, BEVs will be the most economic
powertrain solution for almost all segments
Electric powertrain operating cost break-even timeline (vs. ICE)
Vehicle Viable Break-
segment Range powertrains Evolution of TCO leader even
– +
2020 2025 2030
150 H O
Low km
2 2 2019
300
– + There is no fixed point in
A/B Mid km
H
2
O
2
2025
Budget 600
time when battery
70 kW Long km
2035
electric vehicles will
Mid
300
km
H
2
– +
O
2 2022 offer an operating cost
C/D Long
600 –
H
+
O 2027 advantage over internal
km 2 2
Volume
100 kW Extra-long
800
2032
combustion engines – it
km
depends on factors such
–
as the vehicle segment
+
300 H O
Mid km
2 2 2018
E/F Long
600
km
–
H
2
+
O
2
2022 and range"
Premium 800
– +
250 kW Extra-long H O
2028
km 2 2
Main assumptions: electricity and fuel prices as for Germany 2020; H2 price 5€/kg; PHEV driving modes 40% EV mode/60% ICE mode; FCEV driving modes 40% EV mode/60% FC mode
Strategy& One-time buying incentives not considered Source: Strategy& 34Technology – Automated
Hardware, software & infrastructure of automated driving are
improving, but still not reached level necessary for scaling up
Automated driving technology developments
Current status and limitations
Emergency
vehicle
recognition • Existing radar and camera technology will be
improved to achieve better resolution. LiDAR
technology has still not reached the cost point
• The appropriate sensor setting for future Level
Blind Surround 3/4 vehicles has not yet been finally defined.
spot view Ongoing discussions between camera-only
Lane assist
Hardware solution and other solutions
Rear collision e.g. sensors
warning
• New ADAS computers based on low power tech
Emergency Collision are under development
Driver Cross Topo- braking avoidance
Environment Park Park • Different driver assistant systems mandatory
monitoring traffic graphy
mapping assist assist alert detection Environment Pedestrian beginning 2022 in EU
Mapping detection
Traffic sign • Test and validation not yet mature
recognition • Motion prediction still not completely solved
Rear Surround • Very large amounts of test data complicate
view view Software traditional analytics
e.g. smart
data usage
• So far, there are only a few test tracks that are
fully developed for automated driving
• Expansion of 4G by 2022 for motorways in GER
as basis for 5G
Ultrasound Short-/medium-range radar Camera
LIDAR Long-range radar Microphone
Infrastructure • For the time being only pseudo 5G based on 4G
e.g. 5G (non stand-alone)
Strategy& Source: Strategy& 35Technology – Automated
Once reaching maturity at L3 with broad use case deployment,
rapid breakthrough of L4 technologies expected soon after
Automated driving SAE levels and AD function mapping
Environment Fallback for
Vehicle monitoring and dynamic System
SAE level Narrative definition control user interface driving task capability Exemplary AD functionalities
…under all environmental and • Universal pilot (full autonomy)
HIGH
Full driving road conditions that can be All driving • Interactive pilot driving (control via touch/gesture UI)
5 automation managed by a human driver
(not ODD specific
modes • Robo-taxi and automated people-mover (all
conditions)
System
The system performs …even if a human driver does System • Urban/rural/highway pilot with multi-lane change
Most
High driving all aspects of not respond appropriately to a • Robo-taxi and automated people-mover
4 automation dynamic driving
(driving-mode
request to intervene (ODD
specific)
driving
modes
• Urban last-mile delivery
• Automated valet parking
Alternative or
specific)…
…expecting the human driver System conventional • Urban/rural/highway assistant (e.g. hands-off traffic
Conditional user interface
to respond appropriately to an jam, intersection movement, single lane change)
3 driving
automation
intervention request (ODD
specific)
• Parking chauffeur
• Assisted fleet operations (on-site, off-highway)
…executes both steering and
AUTOMATION Partial acceleration/deceleration • Adaptive cruise control
d Driving
automation The human driver
(driving-mode specific and
depending on ODD)…
Some
driving
• Remote/key parking assistant
• Lane change assistant
modes
performs remaining Human Human
aspects of dynamic
driving, while the …executes either steering or • Adaptive cruise control
Driver system… acceleration/deceleration • Driver assisted parking assistant
1 assistance (driving-mode specific and
depending on ODD)
Human and
System
Conventional •
•
Lane keeping assistant (system steers)
Blind spot monitoring rear/side (system steers)
user interface
The human driver performs all aspects of dynamic
No driving • Pre-/forward- collision braking
LOW 0 automation
driving, potentially “enhanced” by warning or intervention
systems Human
n/a
• Front/rear cross-traffic alert with braking
Strategy& Source: “SAE International Standard J3016”, SAE; Strategy& ODD = Operational design domain 36Technology – Automated
Commercially viable automated driving applications at L3 and
beyond will start becoming available for specific use cases first
Automated driving timeline of commercial road availability
Current developments
People mover (Sub-)Urban 30 50
• ADAS1) technologies require
Restricted Restricted
Areas Areas
Pre-defined route(s)
7-12 seats higher development cost
and efforts than anticipated
Last mile logistics
Pre-defined route(s) Urban 20 40 • ADAS sensors still far
Restricted Restricted
Areas Areas
e.g., parcel station
above target cost, due to
small production volumes
(Sub-)Urban 60 Restricted
and sensor fusion/
Areas
Robo-taxi
No defined routes 60 Restricted
Areas recognition challenges
2-6 seats Rural
• Regulation is advancing,
Urban 50 50 Restricted
Areas
with UN/ECE technical
framework being finalized
Owned vehicle Rural 100 100 Restricted
Areas and e.g. German law for
No defined routes
2-5 seats automated and autonomous
Highway 130 60 130 130
Restricted
Areas
driving already in place
• First L3 vehicle is already
2021 2023 2025 2027 2029 2031 2033 2035 approved up to 60 km/h
Commercial availability (beyond pilot projects)2)
according to UNECE ALKS.
Further vehicles expected
Level 2+ Level 4 xx Max. speed
Construction
area capable
Closed compounds Urban: Traffic situations with many traffic interactions and low speeds for 2021/22
Sub-Urban: Traffic situations with moderate traffic interactions and moderate speeds
Level 3 Level 5 Automated
Area restriction Vehicle follows user Rural: Traffic situations with few traffic interactions and higher speeds
lane changes
1) ADAS = Advanced Driver Assistance Systems
Strategy& 2) Indicating start of availability. Tipping points of significant adoption expected significantly later in certain fields Source: Strategy& 37Technology – Smart mobility
Individual mobility divides into private vs. shared and active
vs. passive driving modes, each with increasing automation
Private/shared mobility modes with selected automated driving use cases
PRIVATE 1) Personally-owned vehicle SHARED 2) Collective vehicle or ride
AUTONOMATION LEVEL
L5 Universal pilot L5
Automated
Robotaxi
Urban/rural/ Automated people mover
L4 L4
highway pilot valet parking
PASSIVE3)
"I am a passenger” Urban/rural/highway Parking assistant Urban/rural/highway
L3 L3
assistant (for private driver) (for private driver) assistant (for public driver)
L0-2 Private/family driver L0-2 Taxi, ride hailing/pooling
AUTONOMATION LEVEL
L5 L5
Interactive pilot driving Interactive pilot driving
(vehicle control via touch/gesture UI “for fun”) (vehicle control via touch/gesture UI “for fun”)
L4 L4
ACTIVE4)
"I am the driver” Urban/rural/highway Urban/rural/highway Assisted fleet operations
L3 Parking/pick-up assistant L3
assistant assistant (on operator site)
L0-2 Self drive L0-2 Car sharing, rental, subscription
Differentiating AD use case
Traditional base use case
1) Includes self-owned, family-owned, credit-financed, long-term leased, personal company car 2) Includes rental, subscription (up to 1 year), ride-hailing, ride-sharing, car sharing, pool car, car club
3) “Passenger” determines mobility purpose / destination and selects means of transport with certain expected time of arrival; “mobility system” determines detailed routing and actual time/place of arrival
4) “Driver” determines mobility purpose / target and selects means of transport with certain arrival time; “driver” determines detailed routing and actual time / place of arrival through User Interface (UI)
Strategy& Source: PwC Autofacts®, Strategy& 38Technology – Smart mobility
Car sharing/subscription platforms rely on micro-mobility
technology stacks when migrating towards electric car fleets
Smart mobility technology platform building blocks – Example of e-vehicle fleet provider
Key benefits Technical platform capabilities Current developments
• Providing a seamless electric vehicle
Partner integration (API) and external data sourcing
Intuitive digital User interface and apps sharing/subscription experience,
user experience (drivers, fleet operators, partners)
requires a holistic technology
architecture and IT platform approach
Customer operations covering functionalities on five levels
Easy electric Onboarding Charging and Incident
(identity, access, …) maintenance management • The IT platforms need to address very
vehicle access
different performance requirements
Calculation and contracting Billing and payment
(e.g. operating telematics/fleet
monitoring vs. managing back-end
Asset and fleet management billing processes)
High vehicle
availability Vehicle condition Asset lifecycle Maintenance and
monitoring/telematics management repair management • To enable fast scale-up in multiple cities,
API/open standards/interfaces are
Reliable & Charging and battery management key to swift onboarding of external
fast charging Energy demand Charge point Battery replacement partners and adoption of local
prediction management and recycling
(regulatory) requirements
Efficient business
Internal Business Operations • Cloud-based systems ensure high
operations Customer acquisition/ Finance and controlling, IT mgmt (IoT, data and reliability/scale-up flexibility, while
marketing risk and legal, HR, .. analytics, cyber, ..) supporting efficient process execution
Strategy& Source: Strategy& 39Digital Auto Report 2021 – Volume 1
Consumer Technology Regulation
Regulation is aiming to Connected
accelerate the mobility
transformation – but Electric
various regions have
followed very different Automated
approaches”
Smart Mobility
Strategy& Source: Strategy& 40Regulation
China and EU leads regulatory discussions on CASE trends –
EV penetration and AV enablement are leading focus areas
Latest regulatory initiatives and discussions (excerpt)
USA GLOBAL
AUTOMATED:
AUTOMATED U.S. Department of Transportation released CONNECTED International regulation on cybersecurity and
Connected:
software updates as well as their respective management systems
Automated Vehicles Comprehensive Plan laying out strategy
enacted by UNECE (01/2021)
for safe integration of Automated Driving Systems (01/2021)
AUTOMATED
Connected: UNECE establishing uniform provisions
AUTOMATED NHTSA issued a Standing General Order to concerning approval of vehicles with regard to Automated
report crashes of L2-L5 vehicles to identify safety issues Lane Keeping Systems (ALKS) (03/2021)
emerging from automated vehicles (06/2021)
ELECTRIC Several measures from Biden administration to AUTOMATED Release of new ISO 22737 defining minimum
requirements & test procedures for low-speed autonomous driving
accelerate deployment of EV charging infrastructure
(LSAD) systems (designed to operate L4 automation) (07/2021)
(04/2021)
Recently introduced regulations at UN level with positive
Lagging behind other regions; New impulses from
impact on CASE adoption, further steps required
Biden administration particularly for EVs expected
EU China
AUTOMATED Germany is first country to ELECTRIC EC adopted a package under AUTOMATED
Automated Draft to amend Road Traffic ELECTRIC New Energy Vehicle Industrial
Electric:
pass regulation for completely driverless European Green Deal incl. CO2 emission Safety Law clarifying requirements for AV road Development Plan for 2021 to 2035 with 5
vehicles allowing commercial deployment of L4 standards1) (07/2021) testing and regulating liabilities for traffic strategic tasks released2) (10/2020)
AV use-cases with focus on MaaS (05/2021) Shared:
ELECTRIC EC promoting deployment of violations and accidents (03/2021) Electric:
ELECTRIC Regulations on Recall of Motor
Autonomous:
AUTOMATED France to allow future use alternative fuels infrastructure with directive AUTOMATED Vehicle Emissions extending original safety
Autonomous: Guide for Admission of
of vehicles controlled by automated driving revision and Strategic Rollout Action Plan recalls to emission recalls (07/2021)
Intelligent and Connected Vehicle Manufacturers
systems on predefined routes or zones starting EU states with a siloed / bottom-up and Products drafted regulation of safety Top-down approach based on long-term
from 09/2022 (07/2021) approach towards CASE regulation requirements for AV manufacturers (04/2021) strategy with positive impact on CASE
Positive expert sentiment Neutral expert sentiment Negative expert sentiment
Note: (1) average emissions of new cars to come down by 55% from 2030 and 100% from 2035 compared to 2021 levels (2) 1: improve capacity for technology innovation; 2: build an NEV industry ecosystem; 3: advance industrial
integration and development; 4: build a sound infrastructure system; and 5: increase openness and deepen international cooperation
AV = Automated vehicle; EC = European Commission; NCAP = New Car Assessment Program; NHTSA = National Highway Traffic Safety Administration; UNECE = United Nations Economic Commission for Europe
Strategy& Source: Strategy& 41Regulation
Developing capabilities to comply with data regulation is vital
if OEMs are to exploit CASE opportunities fully
Major data regulations (excerpt)
Objective Objective Objective
Data governance Strengthen data sharing
Domain and sector
Federal
act mechanisms Specify right of privacy
privacy specific regulations for Civil code
laws of natural persons
privacy protection
Trade secret Define and protect
protection act trade secrets
Protect data e.g. by
State-level China
Grant rights for data storage of personal and
Digital markets Regulate gatekeeper privacy cybersecurity
laws privacy protection important data within
act platforms law the PRC
Digital services Regulate online inter- Federal Provisions on
mediaries and platforms Make government-held Regulate handling of
act gov data management
publica- information accessible personal and important
to public
of automotive data in automotive
tion laws data security
Ensure data protection
GDPR
and privacy
Driver’s Governs privacy and
Foster measures to
Facilitate data sharing Privacy Multiple national protect data and prevent
Further regulations Protection disclosure of personal
among public and standards unauthorized access
accelerating data sharing Act information
private bodies and abuse
Increasing complexity and requirements to
Framework for data sharing/ usage under Heterogeneous regulation across states,
meet privacy requirements as well as national
ultimate premise of protecting customers balancing privacy concerns and adoption of
interests
privacy and data rights new technologies
→ need for China-specific data solutions
Strategy& Source: Strategy& 42Network contacts
Jörg Krings Andreas Gissler Jonas Seyfferth Hartmut Güthner Jörn Neuhausen Claus Gruber
joerg.krings@ andreas.gissler@ jonas.seyfferth@ hartmut.guethner@ joern.neuhausen@ claus.gruber@
strategyand.de.pwc.com strategyand.de.pwc.com strategyand.de.pwc.com strategyand.de.pwc.com strategyand.de.pwc.com strategyand.de.pwc.com
Automotive Europe Digital Transformation Connected & Smart Mobility Automated Driving Alternative Powertrains Software Development
Contributors
Felix Andre Andrew Higashi Anil Khurana
Kunal Arora Steffen Hoppe Patrick Lill
Akshay Singh Steven Jiang Kentaro Abe
akshay.singh@ steven.jiang@ kentaro.abe@ Steven van Arsdale Sebastian Jursch Nicola Schudnagies
pwc.com strategyand.cn.pwc.com pwc.com Thilo Bühnen Tobias Killmeier
Automotive US Automotive China Automotive Japan
Christoph Faller Felix Kuhnert
© 2021 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. Mentions of Strategy& refer to the
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