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Europe’s auto industry and the rise of the ‘passenger economy’

New technologies are giving rise to the ‘passenger economy’: a new paradigm under which car-sharing replaces car ownership, and mobility and digital services drive growth. To benefit, Europe’s OEMs must start preparing now, writes Axel Schmidt, Global Lead of Accenture’s Automotive practice

The trends of connected vehicles, self-driving technologies, car sharing and electric drivetrains will bring profound change to the automotive industry. But together, they will eventually even bring a revolution – the shift to what has been called the ‘passenger economy.’

Under this new paradigm, self-driving and connected-car technology will allow for the free sharing and on-demand use of ‘robot cars’ that can drive themselves, their owners or other passengers to wherever they need to go. Simple and robust electric drivetrains will ensure that these vehicles can run at high utilisation rates, with little need for maintenance and repairs….

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