Author
Leon Cheng
Leon Cheng is a Partner for YCP based in the US office and Head of our Mobility Practice.
The global automotive and mobility industry is undergoing a transformative shift driven by major international events, technological innovations, changing consumer behavior, and more. These forces are redefining industry dynamics, making innovation and adaptability tantamount to success in a highly competitive landscape.
Our Partner, Leon Cheng, shared his unique perspective on emerging megatrends that have been affecting the global automotive and mobility industry at YCP Group’s annual strategic session held in Bangkok, Thailand. During the recently concluded session, Leon provided a comprehensive analysis of three key megatrends, exploring each’s implication on the rapidly accelerating industry and highlighting what market players and consumers can expect in the years to come.
In the second half of his presentation, Leon also outlined a case study illustrating how YCP leveraged its expertise and deep understanding of the market to help an automotive client in successfully navigating market changes.
Megatrends Shaping the Automotive and Mobility Industry
Geopolitical Risks – Increasing global tensions and instability are affecting the automotive and mobility industries. Events such as regional conflicts and trade policy changes have introduced uncertainties that could disrupt supply chains and affect global business operations. These geopolitical risks underscore the importance for businesses to develop resilient strategies that can adapt to changing global dynamics.
Electrification & Beyond – As innovations such as hydrogen fuel cell vehicles (HFCV) gain momentum in the automotive and mobility space, many clients have turned to YCP to understand their implications. Clients are eager to learn how these emerging technologies function and how they will affect their operations in the future.
AI Revolution in Mobility – Businesses are rapidly integrating AI technology into their operations, optimizing processes and significantly enhancing efficiency across the board. This includes accelerating research and development, enhancing production capacity, and leveraging AI-driven insights for strategic decision-making.
The global automotive and mobility landscape is quickly evolving, shaped by rising geopolitical tensions and the increasing adoption of new technology, such as AI and hydrogen fuel cell vehicles. Staying competitive in such a dynamic market entails embracing market changes, innovating continuously, and strategically navigating the challenges and opportunities they present.
Case Study: Turning a Business Challenge into an Opportunity for an Automotive Client
One of YCP’s clients, a tier 1 global mobility company with USD $30M invested in China, approached the firm with the request to develop a carve-out strategy due to the growing geopolitical risks. The client tapped on YCP’s expertise with three goals in mind:
- Understand the business potential in China.
- Explore the ‘China for China’ strategy as a playbook pivot.
- Remain competitive in the market, even after the carve out.
The challenge for Leon was not only to develop a strategy but also to ensure that the company remained sustainable while increasing profitability. Due to the sensitive nature of the issue, collaboration with the Chinese office was restricted.
To address the situation, Leon assembled a team with extensive experience in the automotive aftermarket and business transformation strategies across the US and China. Together, they developed a scenario-based playbook and launched a licensing model in China to help the client redefine their business processes and unlock market potential.
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Leon Cheng is a Partner for YCP based in the US office and oversees our Biotech and Healthcare practice across North America and Asia. His consulting background includes providing International MNC's and MSE's with services related to strategy formulation, M&A, process improvement, implementation and supply chain consulting services.
