Due to the new revenue recognition standards recently issued, automotive entities may need to make changes. We highlight the key considerations and next steps.
The new revenue recognition standard — automotive
Automotive transactions and trends
Cash on the road 2014
Automotive Capital Confidence Barometer
Automotive industry: the quest for telematics 4.0
Deploying autonomous vehicles (AVs)
The value of big data technology
The case against auditor rotation rules
Changing lanes 2014-15: The automotive C-suite's agenda
Integrated services for automotive manufacturers, suppliers and retailers
Today’s automotive industry is affected by many trends. Governments are tempering the need for revenue with increased competition for labor and capital. Tax authorities are adapting their enforcement strategies, focus and policies in response to the changing dynamics of business. Companies are balancing competing priorities, ensuring they maintain compliance while adding value.
Through EY’s Global Automotive Center, we can assist you with these critical issues. Our 7,000 automotive-focused professionals collaborate and share knowledge around the world, to provide consistent, high-quality service to our automotive clients.
Key issues in today's automotive environment include:
- Mega trends impacting the next decade
The global recession reset the automotive industry landscape. As the industry recovers, automotive companies across the value chain must focus on:
- profitable and sustainable growth
- financial and operational flexibility
- investments in new technologies
- seizing opportunities in high-growth markets
Automotive companies should ask themselves the following five questions to help prepare for the next decade.
- How will products need to adapt?
- How will business models need to adapt?
- What are the new market dynamics?
- What are the supply/value chain issues and implications?
- How will demand for vehicles and mobility evolve?
When we thought about the possible ways automakers could answer these questions, those answers led us to identify eight mega trends shaping the industry over the next decade. Knowing more about these mega trends can help you understand how your business can leverage opportunities in the industry.
- Mega trends shaping the global off-road commercial vehicle industry
- Mega trends shaping the commercial vehicle industry
- Mega trends shaping the global light vehicle industry
- Mega trends shaping the Chinese light vehicle industry
- Mega trends shaping the Indian passenger vehicle industry
- Video: mega trends shaping the next decade, part I
- Electric vehicles and alternative technologies
The growing interest in alternative powertrain technologies, especially the increased electrification of vehicles, is affecting the entire automotive industry value chain and creating new mobility trends involving several new, non-automotive stakeholders.
Existing vehicle manufacturers (VMs) are adding alternatively powered vehicles to their product line-ups, such as plug-in hybrids and pure electric vehicles, while new market entrants are using transformation of mobility drivers as their door into the automotive industry.
Our Advanced Mobility Group is poised to help automotive companies navigate this transformation, including assistance with investment decision support, business process change, strategy and increased collaboration.
Increasing your understanding of new opportunities is our goal. In addition to traditional automotive companies, we also work with:
- Cities looking for a sustainable EV infrastructure strategy
- Policy-makers designing EV industry support mechanisms to jump-start the market
- Utilities looking for new revenue streams and greater client engagement
- Companies that need business valuations for EV-related assets
- Fleet managers evaluating new powertrain architecture
- Finance executives assessing the tax and finance implications of leasing EVs
- Manufacturers looking for government incentives for R&D and other projects
- Entrepreneurs trying to craft a winning business model
- VMs fine-tuning their downstream strategy
- Reinventing urban mobility
- Beyond the plug: finding value in the electric vehicle charging ecosystem
- Global consumer views on PHEVs and EVs
- Cleantech matters: Seizing transformational opportunities
- Video: North American International Auto Show
- Video: Perspectives on China from the 2011 Shanghai Auto Show
- Rapid-response guidance on current events
In moments of crisis or unforeseen transitions, it’s important to have a support network to turn to for guidance. From natural disasters to company mergers and changes in tax regulations, automotive companies are not immune to the effects of the unexpected.
Our global automotive analysts continuously monitor the industry's ecosystem to identify events that pose significant uncertainty - in terms of opportunities or risk - and assess potential outcomes and implications for stakeholders.
Turn to us for industry specific rapid response guidance when you’re faced with unexpected changes.
- Emerging markets changing the automotive industry
The rise of emerging markets gives the automotive industry a new business prospective. Challenges and opportunities exist in a growing middle class, evolving government regulations and increasing competition.
Whether you have a tight focus on the BRIC countries or want to see the full range of emerging market growth, we provide a global perspective.
- Mega trends shaping the Chinese light vehicle industry
- Mega trends in India's light vehicle industry
- Impact of Beijing’s license quota system
- Russian and CIS automotive industry
- The Central and Eastern European automotive market
- Video: Shanghai International Automobile Industry Exhibition
- Video: Mexico’s growing automotive industry
| Don Linsdell |
416 943 3466
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Listen now to our webcast: Revenue recognition considerations for automotive