Currently in 2023, the global automotive industry is facing a historic turning point unlike anything it has experienced in the past 100 years. As technology advances and market changes, the form and function of automobiles are constantly evolving, and automotive companies are exploring various innovative strategies to survive.

CASE (Connected, Autonomous, Shared, Electric), which has become a major megatrend, is completely changing the landscape of the automotive industry. Connected technology allows vehicles to connect to external services, providing drivers with a personalized experience, while autonomous driving technology has significantly improved safety and convenience. The spread of shared services is also shifting the paradigm from "ownership" to "utilization" of vehicles, and the transition to environmentally friendly electric vehicles is accelerating.

Amidst this unprecedented whirlwind of change, automotive companies are striving to enhance their competitiveness through innovative strategies. There are nine strategic positioning options: mobility providers, user experience creators, autonomous driving leaders, connectivity leaders, electric vehicle pioneers, platform businesses, data/analytics-focused companies, vehicle distribution companies, and lifecycle management companies.

To successfully implement these innovative strategies, clarity of customer value proposition, focus on developing core competencies, and differentiation in the value chain are essential. Furthermore, localization of existing business models and strategic alliances with collaborative partners will be crucial to success.

Meanwhile, high-performance batteries and high-efficiency motor systems are attracting attention in the development of next- generation automotive technologies. Improvements in battery energy density and fast charging capabilities, along with optimization and weight reduction of motor systems, are expected to significantly enhance driving range and efficiency. Solid- state lithium-ion batteries and integrated e-axle motor systems are particularly attracting attention as key technologies that will lead the next generation of electric vehicle technology.

However, the secure supply of key raw materials, such as lithium, nickel, and cobalt, used in batteries and motors, is emerging as a significant challenge. The dependence on overseas sources, coupled with the risk of surging raw material prices and supply disruptions, is a pressing issue. Developing alternative materials and securing resource recycling technologies are urgently needed.

Along with developing eco-friendly technologies, the adoption of CO2-reducing manufacturing processes and improvement of environmental performance throughout the product lifecycle are also emerging as crucial tasks for automotive companies. Ultimately, more proactive efforts will be required to achieve carbon neutrality by 2050.

The automotive industry is expected to undergo its most significant upheaval in the next 5 to 10 years. Automotive companies must prepare for this upheaval through various innovation strategies led by CASE, and must dedicate their efforts to developing next-generation mobility technologies and building sustainable business models.