What will WirelessCar’s increased presence in Japan mean for Japanese automakers?

In the fall of 2024, WirelessCar established an office in Tokyo. What will WirelessCar’s increased presence in the country mean for Japanese automakers? Let’s start by looking at four megatrends affecting the Japanese automotive industry.

1. Deglobalization halts market integration

We are witnessing a global trend where markets are turning inward and becoming more protectionist. In this environment, offering cost-efficient connected vehicle services will become more expensive and increasingly complex—both technically and legislatively—as global synergies decline.

By collaborating with a trusted tech partner offering off-the-shelf products, automakers can gain and expand their digital footprint in both mature and emerging markets. Equally important is finding the right partner to operate their connected vehicle services worldwide.

Since the costs for service development and operations are shared among OEMs, these connected vehicle services can be offered at a lower rate to the end customer. In emerging markets, that can play a key role in whether an automaker can successfully leverage its connected vehicle services there or not.

2. The need for decarbonization calls for new electric vehicles and EV services

The shift away from internal combustion engines (ICE) will continue, as will customer demands for a convenient EV ownership experience. How can traditional ICE vehicle manufacturers keep up, and leverage better electric vehicles and EV services?

The development of EV services – and ensuring that they can be added easily to an automaker’s existing service portfolio – is critical in addressing this growing business area.

3. Digitalization requires automakers to offer state-of-the-art digital services worldwide

Connectivity is no longer a luxury; customers expect it as a standard feature across international borders. By leveraging connected vehicle data, automakers can create better digital offerings and remain competitive globally.

As the demand for these digital services grows, so does the need for machine learning and data analytics and comprehensive data management. Connected vehicle service providers with deep expertise in these areas have an advantage, especially those who continue to expand their knowledge alongside global automakers.

Japanese automakers, with their extensive export markets and globally distributed manufacturing networks, stand to benefit significantly by optimizing these resources to enhance customer experiences around the world.

4. Demographic changes will see new customer bases emerge

Emerging markets present a growing number of younger, tech-savvy customers raised on smartphones and digital convenience. They expect the vehicles they use to seamlessly integrate into their connected lifestyles.

We are already witnessing the emergence of highly affordable, fully connected cars. Every automaker needs to act upon this development, and provide this evolving customer segment with attractive, affordable digital offers.