Legacy automakers must drastically shorten their platform and product development cycles to compete with the rapid iterations of challenger automakers. This would require investing in modular vehicle architectures, adopting agile development methodologies, and collaborating with ecosystem partners.

To compete against challenger automakers with significant scale economies, legacy automakers should prioritise as a matter of urgency areas in the value chain to build scale and optimise productivity for greater cost leadership. Quick wins and ‘no regret’ moves could include integrating Tier 2 to 4 electronics parts suppliers across the region, and investing in local production capabilities for critical components.

In order to connect with the consumer at a deeper and more personal level, legacy automakers must transform their retail strategies by reimagining the automotive as a lifestyle experience. This means moving beyond a narrow focus on vehicle sales to explore a broader ecosystem of services, content, and experiences, and adopting more holistic approaches to capturing value.