Speaking at the entrepr event in Shanghai

Bill Russo, Managing Director of Gao Feng Advisory Company, talked about China's Automotive Industry. 

The traditional value chain of the automotive industry is being fundamentally transformed by a new wave of "digital disruptors". Unlike traditional automotive OEMs and suppliers, these digital disruptors are leveraging mobile internet technology to present new and innovative "Connected Mobility" services to users, and in the process challenging the business model of the automotive industry. The century old hardware-centric business model of individual car ownership and product-based segmentation is transforming into a new form which leverages Internet technology to deliver a broader range of services to address mobility needs.

Such changes are happening faster in China than in the rest of the world, where the size and scale of the urban population and the sheer numbers of mobile internet usersare much greater than other markets. In such an environment, China's Internet giants (Baidu, Alibaba, Tencent) along with mobility disruptors such as LeEco and NexEV are vying to deliver an increasingly connected, electrified, smart and personalized mobility experience. Coupled with the Chinese government's regulatory push on new-energy vehicle adoption and sustainable transportation infrastructure, China has demonstrated strong potential to become a breeding ground for Connected Mobility innovation. Automotive OEM and supplier executives CEOs must learn to reimagine mobility in the China context in order to secure a strong position in this new competitive landscape.

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