Global Megatrends and their Impact on the

Future of Automotive Mobility in Latin America

What is a Mega Trend?

What is a Mega

Trend?

Mega trends are

transformative, global

forces that define the

future world with their far

reaching impact on

business, societies,

economies, cultures

and personal lives

Megatrends have local

and regional implications

and timing of impact

varies geographically

Urbanization

– City as a

Customer

Smart is the

New Green

Social

Trends

Connectivity

and

Convergence

Bricks and

Clicks

Innovating

to Zero

New Business

Models: Value

for Many

Beyond

BRIC: The

Next Game

Changers

Future

Infrastructure

Development

Health,

Wellness

and Well

Being

Future of

Mobility

2

Future

of

Energy

Mega Trend:

Urbanization

“City as a

Customer”

3

Mega CitiesBy 2025, it is Expected that 86% of the Population (567 million people) in Latin

America Will Be Living in Urban Areas.

People per Square

Kilometre

Highly Urban Countries More than 200 people

Medium-high Urban Countries 100 – 200 people

Medium Urban Countries 50–100 people

Low-medium Urban Countries 10–50 people

Low Urban Countries Less than 10 people

Mexico CityPopulation 2025:

24.6 MillionGDP 2025:

$713.5 Billion

BogotaPopulation

2025:11.4 MillionGDP 2025:

$298.0 Billion

Rio de JaneiroPopulation 2025:

13.6 MillionGDP 2025:

$327.1 Billion

Buenos AiresPopulation 2025:

15.5 MillionGDP 2025:

$327.1 Billion

Sao PauloPopulation 2025:

23.2 MillionGDP 2025:

$643.9 Billion

Mega Cities in 2025

Emerging Mega

Cities (4-8 Million

population in 2025)

SantiagoPopulation 2025:

7.1 Million

Belo HorizontePopulation 2025:

6.6 Million

GuadalajaraPopulation 2025:

5.7 Million

Source: United Nations, Department of Economic and Social Affairs Statistics; other regional and country level statistics bureaus; and Frost & Sullivan analysis.

LimaPopulation

2025:11.5 Million

Mega Cities and Emerging Mega Cities, Latin America, 2025

City as a Customer—Concept and Definition

City as a customer is an implication of urbanization,

wherein cities (and not countries) are looked at as potential

customers and hubs of investment, wealth creation, and

economic growth. Every city will be highly unique in its

infrastructure demands by offering cross-sectoral micro

implications and opportunities in the following industries:

• Mobility

• Building

• Healthcare

• Energy

• Materials

• Automation

• Security

• Retail

This, in turn, will drive:

• Companies to internally revamp in house-competencies

and products/services portfolio to target cities as

customers.

• The city infrastructure market to develop into a new

industry offering new white space market opportunities.

• Highly customized and innovative city solutions and new

urban business models.

• Cities to wield economic and investment clout that is on

par with countries.

City as a Customer

Photo credits: Dreamstime

Source: Frost & Sullivan analysis.

City as a CustomerUrbanization will Create Numerous Cross-sectoral Micro Implications and Opportunities in

Latin America.

Water and Sanitation

MarketWater treatment systems,

integrated power sources,

and zero waste for industry

SecurityData on nearby police

stations or officers along

with tracking high-value

goods and monitoring crime

MobilityCar sharing, bike sharing,

integrated door-to-door

multi-modal transport

solutions

HealthcareRemote monitoring of

patients and ability to

conduct surgeries from

remote areas

Civil Construction

IndustrySmart Infrastructure

Smart homes, green

buildings

Source: Frost & Sullivan analysis.

Mega Trend:

Connectivity &

Convergence

Connected WorldOver 80 Billion Devices will be Connected Globally in the Future. Latin America to have about 1.3 Billion Connected

Devices in 2016.

4G rollout is expected in

2012 reaching 28.9

million of connections

in 2016

Total Pay TV

subscribers expected to

reach 61.2 million by

2015

416 million 3G

broadband subscribers

by 2016

Broadband

subscribers expected

to grow at 16.6%

CAGR

29.9 million (2010)*

77 million (2015)*

Internet users

212.4 million (2010)

311.4 million (2015)

The mobile

subscriber base

705.6 million (2016)

Source: Frost & Sullivan analysis.* Data for Argentina, Brazil, Chile, Colombia, Mexico and Venezuela

Connecting the Car Wirelessly!

10

Wireless Cars Over the Air Updates

Vehicle Telematics

Integrated with

Connected Living

Connected Platforms Connected Cars

• 4G LTE

• Wi-Fi Hotspots

• Smartphone Tethering

• End to End Software

Management

• 50% potential savings in

recall spending

• Vehicle to home charging

• Geo-fenced home automation

• Vital vehicle functions in the

car (e.g. Infotainment, vehicle

maps)

Cloud Interface

Why Big Data in the Auto Industry – The Business Case

11

Digital Leads

Warranty Costs Reduction, Predictive

Maintenance

User & Dealer Satisfaction

Internet Aggregators to Enter Market

Product Performance Analysis, Production

and Supply Chain

Advanced Mobility services, Dynamic

Navigation and Parking

12

Future Autonomous World Anything that Moves, Could be Autonomous in the Future

1414

Source: Frost & Sullivan

Connected Home – 31% Connected Work –15% Connected City – 54%

• Home Automation

• Home Energy

• Home Health

• Home

Entertainment

• Mobility - Mobile

email, Unified

Communication

• Mobile Working

• Enterprise Social

Networking

• eGovernance

• eCitizens

• Personal and Freight

Mobility

• E-learning

• Mobile banking

Sub Trend: Future Connected Living EcosystemConnected life contains three important aspects of connected home,

connected city, and connected work

Connected Living Total Market: $730 Billion in 2020

Mega Trend:

Bricks and Clicks

15

Evolution of Bricks and Clicks Model in New Car RetailingRetail Model Will Evolve From a Single/Multiple Channel to an Integrated

Cross Channel Model

Source: Frost & Sullivan analysis.

Conventional dealership model Online car

configuratorGoogle search Mobile Apps

Bricks (pre-2000) +Advent of Clicks (post-2010)

Interactive Stores

(motion sensor displays)

Mobile Stores

(Ambient mobile retail)

Flagship stores

(modern retail)

The Future - Bricks and Clicks (2015 and

Beyond)

16

Emerging New Retail Formats in the Automotive Industry

Digital Flagship Stores Lifestyle Stores Pop Up Stores

On-line retailing 3rd Party Online StoresMobile retailing

Mega Trend:

Future Of Mobility

1818

19

Car sharing & pooling

Car Leasing Car Rental

Demand Responsive

Transport (taxi, BRT)

Dynamic Parking

Intracity & Intercity Public

Transport

Extended Eco System

Partnerships

Freight Mobility

Micro-Mobility Solutions

Connected Living

Trains/Flights integration

PHYD Insurance

Energy Management

Apps, Journey Planning, Big

Data

Concierge services

Future Integrated Mobility Solutions Will Provide

Door to Door Seamless Mobility

Future of Mobility

Micro-mobility

Integrated

mobility

Global car

sharing

New Business Models (E.g. Taxi Apps)

Connected

cars

Telematics

based insurance

Autonomous

Cars

Overview of Micro Mobility Models by Key Global

Mainstream OEMs - About 115 micro mobility models

globally, 50% to go into production by 2015-2016GM Ford Chrysler Renault VW Audi BMW Daimler Fiat PSA Hyundai Honda Toyota Nissan Suzuki Geely

1-W

heel

Four-

Wheel

Thre

e-W

heel

Tw

o-W

heel

4 4 1 5 8 11 12 4 2 20 10 13 7 7 5 2Total

Source: Frost & Sullivan analysis.

Car sharing Business ModelsWith consistent growth in the market, the carsharing business

model is evolving into new segments

Car sharing Business Model

- A to B to A

- A to B

- X to X- Free

- Fee

- PAYD

- ICE

- EV

- Hybrid

- B2C

- B2B

- Corporate

- Cooperative

- For-Profit

- Non-Profit

- 24X7

- City Centers

- Day/night

- Dedicated

- Public

- Host

Vehicle

Infrastructure

Parking

Structure

Membership

Customer

Confinements

-P2P

- Traditional

- Hybrid

Type

Source: Frost & Sullivan analysis.Note: Highlighted in red are models that are gaining prominence

Future of Parking Dynamic in operation with innovations in the areas of reservation, navigation, payments and sensor

assisted real-time parking sessions

Source: Frost & Sullivan

Peer-to-Peer ParkingParking Analytics

and Big Data

Real-time parking

and wireless sensor

integration

Parking Enforcements

- Camera based

Mobile apps for

parking reservation

Parking Payment by using

NFC and QR code

In-vehicle parking

reservation payment

Future of

Parking

Increasing footfall

and consumer

spend

Competitive

advantage

New Collaborative Business Models – “Mobility for

Loyalty”OEMs are Evolving Mobility Models into a Total Lifestyle Solution

Increased service

use/membership

Touch points and

product promotion

Integration into

lifestyle

service/product

Synergies –

attractive

collaboration

Discounts and

loyalty rewards

Mobility

Services

Retail/

Leisure

Consumers

Gains: Convenience Brand Financial

Conclusion: Is the Future of Mobility

James Bond.................

25

...............................or Jason Bourne!

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