LEGACY VERSUS INNOVATION: HOW DO ESTABLISHED CAR MANUFACTURERS COMPETE WITH NEW ENTRANTS?

Established car manufacturers (ECMs) are increasingly challenged by new entrants (NCMs) introducing disruptive innovations in electric mobility, digital services, and business models. This study examines how ECMs perceive these emerging competitors and explores the extent to which the differences in business practices, organisational structures, and product architectures are confirmed in practice. Drawing on a multiple-case study design based on nine expert interviews, the findings show that while literature-based assumptions, e.g., ECMs’ slower agility and R&D-centric strategies are supported, important differences are also identified. ECMs have shifted towards modular vehicle architectures and perceive shared mobility and connected services less as core revenue drivers than previously assumed. The study contributes to theory by detailing existing models of disruption and dynamic capabilities in incumbent firms. For practice, it highlights the need for ECMs to accelerate agile transformation and rethink their digital value propositions. Future research should investigate how organisational legacy shapes transformation pathways and how emerging players scale sustainable business models in mobility ecosystems.