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Wednesday, August 30, 2023

Legacy Automakers Lag Behind In Digitalization


If automakers were graded based on software alone, it seems newly established carmakers like Tesla and Nio easily beat out legacy brands like Jaguar Land Rover, Mazda, and Toyota.

Created by Gartner, a management consulting company, the Digital Automaker Index accesses carmakers in eight software centric-areas. Those scores are tabulated to come up with an overall ranking, which this year covers 20 automakers.

The categories include culture and leadership, talent, architectures, connected vehicle, autonomous driving, electrification, smart cockpit, and online sales potential.

CASE or Connectivity, Autonomous, Sharing/Subscription, and Electrification is seen as the guiding principals for the future of the auto industry. These are pivotal in changing the concept of the automobile. It is the reason why several carmakers have already pivoted from being a car company to a mobility company.

The core goal of the index is to determine which brands are in the best position to monetize their software capabilities, which will be an essential part of their future success.

Tesla finished No. 1 followed by China’s Nio and Xpeng, with U.S. EV startups Rivian and Lucid rounding out the top five.

Companies with a software-first corporate culture scored higher than those that are still talking about becoming technology companies.

For instance, Tesla and Nio got top scores in the culture and leadership category because they have “a high number of leadership members with strong experience in the digital world,” according to the index. Tesla and Nio also got the maximum score of five points for having a management structure where the chief information and chief digital officers report directly to the CEO.

Another key category is online sales because dealers are interested in selling cars, not the brand’s different software offerings. Therefore, automakers need to excel here if they want to monetize their software offerings.

Making up the bottom of the list in descending order are Honda, Toyota, SAIC Motor, Mazda, and Jaguar Land Rover.

See the full breakdown below:
  1. Tesla – 80.1
  2. Nio – 69.7
  3. XPeng Motors – 58.2
  4. Rivian Automotive – 48
  5. Lucid Motors – 46.8
  6. General Motors – 45.1
  7. Geely – 42.5
  8. Ford – 41.8
  9. Volkswagen – 41.8
  10. Mercedes-Benz – 38.2
  11. BMW – 38.1
  12. Renault Nissan Mitsubishi – 36
  13. BYD – 34.5
  14. Stellantis – 29.2
  15. Hyundai – 28.9
  16. Honda – 28.7
  17. Toyota – 28.7
  18. SAIC Motor – 28.5
  19. Mazda – 24.9
  20. Jaguar Land Rover – 24.7

9 comments:

  1. Thats dear legacy...not known for trailblazing, breaking tech/features😁😁😁. but later also make it n made it more mainstream, more affordable n reliable.Always late in fashion...but sometimes it makes sense to first observed consumers reaction/preference to new tech/features.

    ReplyDelete
  2. Notice how the more tech a car has, the less reliable it is?

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    Replies
    1. Jaguar Land Rover and the vehicles under Stellantis are all known to be unreliable

      Delete
  3. Toyota,Mitsubishi,Hyundai and Honda still selling vehicles with 1 DIN Radio ala 1990's πŸ˜‚ Mazda still uses very small infotaiment displays as if they're from 2000's.πŸ˜‚
    Jaguar Land Rover vehicles are unreliable,overpriced with outdated tech.

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    Replies
    1. Also, chinese cars have no spare parts and are unreliable AF. πŸ˜‚πŸ˜‚πŸ˜‚πŸ˜‚πŸ˜‚πŸ˜‚

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  4. SAIC Motor vehicles like MG uses old school infotaiment system though they didn't LKA and AEB on MG HS and ZST to keep the costs down.
    Infotaiment display and system of MG GT is kinda laggy to use.

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  5. No need to apply digitalization in everything. Just keep it simple and make the primary focus on driving. That's it.

    ReplyDelete
    Replies
    1. noobs like to have all the unnecessary gadgets in their cars.

      Delete
  6. How many buyers want all that tech? I still know dozens of people who aren't that tech-savvy. I am also in the crowd of people who do not like touchscreen everything in a car and still want physical knobs and buttons on the dashboard. Anyhow, as software-defined vehicles (SDVs) will be the future of mobility, I hope there will still be enough simple cars for people who do not want much tech.

    ReplyDelete

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