With the ownership model turned on its head, OEMs will need to scramble to retain some sense of brand loyalty. But then again, brand loyalty is already in the midst of an evolution. Brand is very much a different thing to what it was a few years ago for cars. 20 years ago branding depended on the hardware, the type of engine, how the car sounded and felt. These days, branding is more of a design thing, a feeling that can be easily adjusted by software. The trend of platform sharing across brands by larger OEM Groups, such as VW Group, where small adjustments are made within the interior or software. It’s going to be a lot more related to the software, to what the consumer uses every day rather than the hardware itself.

In the future, we will see vehicle manufacturers move away from manufacturing, focus more on the brand and introduce themselves as a service

The vehicle brands that will survive these changes are the ones that will develop a different perspective of brand loyalty. There are going to be more and more owners of code and owners of software rather than owners of hardware. We’ve seen that already, and manufacturers are giving more and more responsibility to system suppliers. They’re moving into branding rather than building cars themselves. In the future, we will see vehicle manufacturers move away from manufacturing, focus more on the brand and introduce themselves as a service.

And the big money makers in this scenario? Not the hardware, not the manufacturing. It is coming from the service providers – either the owners of the brand or whoever provides that service of transportation.

It’s reached the point where there has to be drastic change, because it’s what consumers are demanding.

Along the way, some brands will disappear. There’s simply no room for so many brands, especially when external players outside of the automotive market come into play; they are going to gain some market share as well.

At the moment, the rate of change is faster than it has ever been. The automotive industry has never worked in revolutions; over the last 110 years, it’s always been a case of evolution. Now it’s reached the point where there has to be drastic change, because it’s what consumers are demanding.