What renewed demand means for the mobility sector

In this episode, Akshi Goel, EY Global Advanced Manufacturing & Mobility Analyst, shares her insights on the top themes discussed by mobility leaders during the 4Q20 public earnings calls.

The mobility industry continues to witness recovery in consumer demand as the pandemic acted as a catalyst for shifts in consumption patterns toward e-commerce and sustainability. However, demand recovery across sectors could further intensify raw material shortages. And, while the mobility sector did manage challenges posed by the pandemic through agility in decision-making, resiliency in operations, accelerated digitization and leaner cost structure, companies still need to prepare for rising uncertainty associated with geopolitical risks.

Key takeaways:

Developments in end markets: automotive peers are witnessing a strong recovery in consumer demand; however, the impact of disruption continues to reflect on performance. Logistics peers are witnessing sustained growth arising from e-commerce activity. Competitive positioning: achieving the optimum product price and customer mix remains a top priority with mobility peers. Original equipment manufacturers (OEMs) have set up a strong product pipeline with a focus on sustainability and connected vehicles. Business reorganization: several peers are reporting performance improvements due to lean cost structure and rationalization of product portfolios toward high margin segments.