How the pandemic triggered a shift toward sustainability

Advanced Manufacturing and Mobility Business Minute

In this episode, EY Global Advanced Manufacturing & Mobility analysts Avinash Sagar and Akshi Goel share their insights on some interesting findings from the 2Q21 public earnings calls.

The mobility sector has been among the hardest hit during the COVID-19 pandemic. However, the picture is improving. Pent-up demand is driving growth in the automotive sector, with considerable growth recorded in the US and Asia-Pacific. This demand will continue to dominate in the next quarter. In an exciting shift arising from the pandemic, consumers are turning toward sustainability — and they expect mobility players to expand their offerings in the electric vehicle (EV) segment. Automakers are also driving innovation with a commitment to sustainability across the value chain. This trend is likely to continue for the next few months.

Key takeaways:

• “Demand patterns” has emerged as the leading market force. The US is witnessing record growth in the automotive segment. While sales in Europe are gradually improving, the robust consumer demand in Asia-Pacific is likely to achieve pre-pandemic levels by the end of 2021.
• On the company response side, businesses are focused more on competitive positioning than on customer acquisition and connectivity. Logistics companies are leveraging differential pricing strategies to stay competitive.
• Supported by a substantial shift in consumer demand toward green products, many automakers are driving innovation with a commitment to decarbonization across the value chain.