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Technical Paper

Next-Gen Business Models for the Automotive Industry for Connected Cars and Services

2018-04-03
2018-01-0045
As mobile data traffic expands 10-fold from 30 Exabytes in 2014 to 292 Exabytes in 2019, and the total mobile service subscriptions reaches 6.8 billion, in a global population of 7.3 billion, there is a compelling move towards connected cars and services. Though SDB research suggests US$ 18 billion additional revenue from these services, but most important question is “Are the consumers, who buy cars, willing to pay extra for these services”. Traditional business models of OEMs who buy parts from Tier-1 suppliers, and sell the vehicles to consumers as a one-time sales revenue per consumer, have to learn a lot for new successful business models. Telematics services, introduced in early 2000, bears testimony. For the New Business Models, the OEMs have to work with the ecosystem of service providers, who themselves have different a business model of operations. They do not believe in charging everything to the consumers.
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