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On the Road to Success: What’s Driving Change in the Global Automotive Sector?

The automotive industry is changing in a big way, are you ready to cope with the transformations?

automotive industryDisruptions in the automotive industry are fast-changing and the sector is now largely dominated by changing customer expectations, accelerated adoption of modern technologies, and shifts in competitive power. The advancements in the automotive industry have not only brought about convenience to customers but the sector now majorly fuels growth in both developing and developed economies by offering better job opportunities. However, amidst the rapid changes in the sector, players in the automotive industry will have to make tough decisions to stay ahead of the curve.

In this blog, we offer perspectives on some key questions that are a top priority, especially for the C-suite.

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How is the automotive industry evolving?

Over the past couple of years, the automotive industry has recovered from the economic crisis. By the end of the next year, our automotive industry experts expect the global automotive sector’s profits to increase exponentially. Although that is good news, the benefits will not be distributed equally across all geographies or segments. Instead, some regions and segments will perform better than others. Interestingly, the growth of the automotive sector in BRIC nations have outperformed that of regions including Europe, North America, and Japan over the past decade. Not only did emerging markets including BRIC and RoW account for a good majority of the global automotive profits last year, but these regions are poised to outpace growth in established markets over the next decade as well.

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What are some of the key challenges that can be expected in the future of automotive industry?

Experts at Infiniti predict three challenges to shape the near and medium-term future of automotive companies. These challenges will be more crucial for established markets when compared to emerging ones.

Complexity cost pressure

Due to the increase in regulations in environmental and safety standards, not only will the costs increase but will also result in rising complexity. This is especially true in the case of non-domestic markets. OEMs’ will have to identify ways to address this issue while extracting economic value.

Digital demands

Research shows that currently digital channels form the number one source for customers to source primary information before buying a car. This may soon result in online sales channels to purchase a vehicle, posing threat to the existing dealership model.  

Changing industry landscape

With the changing landscape in the automotive industry, OEMs must ensure that their suppliers’ production footprints especially in emerging markets are in line with their future market demands and their own production plans.

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Creating a Successful Customer Buying Journey in the Automotive Industry

The growth of the U.S. automotive sector is expected to show a positive trend this year. As a result, original equipment manufacturers (OEMs) are investing heavily in new designs, technology innovations, and differentiating services to boost sales and retain customers. With the advent of the internet, now consumers have several touchpoints to an automotive brand including reviews and rating sites, social media, and virtual test driving. This gives companies in the automotive industry several opportunities to influence the target customer buying journey.  Automotive companies have abundant customer data at their disposal. The right data strategy will help companies in the automotive industry to increase the efficacy of their audience targeting and deliver relevant content along each point in the customer buying journey. Let’s examine how players in the automotive industry can boost their customer experience and enhance the overall customer buying journey.

With access to ample data, auto marketers are well-positioned to drive engagement among new customers and retain loyal ones. Request a free proposal to know how we can help you transform data into actionable insights.

automotive industryEnrich customer profiles with data

The first-party data available with OEMs in their CRM provides details relating to direct transactions, vehicle and owner information, service records, past purchases of cars or accessories and much more. This data will be highly useful for automotive industry players to better understand their customer buying journey. This data can be used to build customer profiles and further adding third-party data can help gain powerful results. Data on lifestyle and preferences can take audience profiles one step ahead by adding more attributes to factors that influence consumer buying behavior. This gives an understanding to automotive companies on how they can personalize digital experiences and enhance their customer buying journey.

The holy grail of any marketing campaign is knowing your audience and delivering content that will inspire them to act. Get in touch with us to learn how our solutions can help your business strategize to win over the right audience.

Examine audience segmentation

By analyzing existing buyers or the ideal prospects, companies can build additional audience profiles based on similarity in characteristics and attributes. For instance, if a company is targeting consumers who prefer to purchase directly from the dealership versus an auto parts specialty store, look-alike modeling may help to expand their reach to new audiences who are more likely to buy their products. Another way to uncover new targets is through custom segments. Custom segments allow companies in the automotive industry to find new prospects by creating whole new audiences based on specified parameters which combine pre-existing segments including the make/model/year ownership details, propensity to buy data and other attributes.

Adopt a multicultural strategy

In the US automotive sector, the buyer dynamic has shifted to multicultural consumers. The spending power of these consumers in the US automotive industry is increasing rapidly. Companies that want to survive must learn how to target these groups of consumers by understanding cultural nuances and identifying attributes, such as language spoken and language of the content they consume, family values, personal or professional interests, brand preferences, and monetary impact.

Learn more about Infiniti’s solutions for the automotive industry.

US automotive industry

Automotive Industry Trends: Key Takeaways from The First Half Of 2019

The first six months of 2019 has been eventful with some key automotive industry trends and takeaways that will be useful for industry analysts and dealers alike to plan for the next half. Last year’s gradual sales slowdown gave rise to several speculations on how the sector would shape up this year. Although its too soon to make any conclusions, our automotive industry analysis shows that year-on-year sales depict a sluggish pattern. In this blog, experts at Infiniti Research examines the key factors that could have resulted in the dismal performance of the sector in the first half of this year and also some key takeaways based on these automotive industry trends that companies can use to revamp their strategies for the second half.

Unable to keep up with the latest automotive industry trends in the market? Request a free proposal to know how we can help you stay abreast of the latest automotive industry trends and formulate strategies to stay prepared for the challenges coming your way.

Automotive industry trends and key takeaways

Automotive industry trends and key takeaways (1)Tariff war with China

Since the last quarter of 2018, there has been a significant threat of high tariffs being imposed on Chinese goods. Many of these items are used in automobile productions. This news was a big blow to many branches of government as well as automakers in the US. Experts at Infiniti Research expect that increase in the tariffs on Chinese goods could significantly diminish the demand for new vehicles and hamper automotive industry sales. This hearsay about the rise in tariffs has also resulted in a slowdown in the automotive market in China, diminishing profits for western automotive companies doing business there.

Trade dispute with Mexico

Not just China, Mexico was also in danger of having tariffs levied on all imports. Mexico is a primary source of low-cost factory labor and materials to several automakers in the U.S. An increased tariff means that these automakers will lose out on much of their cost-savings. Several companies in the automotive industry claimed that they could incur millions of dollars in losses if the tariffs came into effect. Fortunately, President Trump has decided to do away with the tariffs indefinitely. However, this issue can be expected to come up again anytime in the future.

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Booming used cars market

One of the prime reasons for the first half of 2019 to begin with a sluggish start can be attributed to the increasing competition in the used-vehicle market. This is one of the key automotive industry trends dominating the sector right now.  The rising price of new cars and the increasing interest rates are prompting customers to purchase used vehicles. If the affordability of new cars continues to become a problem, automotive industry trends like booming used car sales will become prominent in the next couple of years.

Final thoughts

The first half of this year had a sluggish start for the automotive industry. Some automotive industry trends like increasing competition from the used vehicles market, weather-related events, and the federal government shutdown are some of the key factors contributing to the slowdown in the automotive industry. If all the above mentioned automotive industry trends come into play in the second half as well, our industry experts expect this year to be even more challenging and crucial for automakers.


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Infiniti’s Competitive Benchmarking Solution Assists an Automotive Company Establish Market Presence in Germany

Business Challenge

Companies in the automotive industry are facing a period of rapid competition and increased capital spending in an effort to compete with major automakers in the industry. This coupled with the adoption of autonomous technology by top competitors has increased the pressure on automakers to innovate their offerings, understand competitors’ key strategies, and develop a competitive benchmarking strategy to achieve their business goals.

The client is an automotive industry player in Germany and was new to the market. The company was facing predicaments in profiling competitors’ and promoting their service offerings in Germany. The client wanted to gain a fair perspective of how well they performed compared to other major companies in the automotive industry. Additionally, the client encountered a decline in its sales rate for their automotive products. They wanted to improve their market share by understanding the potential game-changing efforts and initiatives undertaken by their competitors. Also, with the help of competitive benchmarking analysis, the client wanted to improve their product and service quality, efficiency, and enhance customer experience.

Is your inability to adapt to key strategies employed by your competitors resulting in revenue losses for your company? Our competitive benchmarking solutions help firms outperform their competition with real-time insights. Request for a FREE brochure to learn more about our services.

Solutions Offered and Value Delivered 

To identify and profile the key competitors in the automotive market space, the experts at Infiniti Research carried out extensive qualitative and quantitative research by conducting interviews and discussions with top market players in the industry.

The competitive benchmarking solutions offered by Infiniti Research helped the client to profile direct competitors in the market space. This helped them to assess competitor’s offerings and focus on performance gaps. The client also witnessed a gradual improvement in their service offerings and curtailed issues related to their automotive products. Infiniti’s competitive benchmarking analysis also helped the client differentiate their business from other players in the automotive market. Moreover, gaining a competitive advantage further helped them create a new marketing strategy and brand image by relying on the key differentiators. Within one year, the client was able to establish their market presence in Germany.

Market Intelligence Engagement also helped the client to:

1. Improve the quality of their service and product offerings
2. Increase productivity while reducing cost
3. Prioritize the areas of improvement compared to their competitors
4. Improve their performance standards to stay relevant in the automotive marketspace

Benchmarking competitors remain to be a major challenge faced by players in the automotive sector. Our competitive benchmarking process simplifies the entire process. Request for a FREE proposal to know how.

What is Competitive Benchmarking?

Competitive benchmarking analysis is the process of comparing an organization’s performance with that of its direct competitors in the industry. Apart from giving an organized overview of the company compared with their competitors, competitive benchmarking analysis also reveals performance gaps, improvement opportunities, and highlights competitors’ strategies that need to be countered. In this competitive world, a competitive benchmarking analysis is a common practice to establish baselines, define best practices, and identify improvement opportunities.

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The Real Challenge Facing the Automotive Industry and the Way Forward

Globally, the automotive industry has grown more attractive than ever before. All kinds of new and exciting technologies such as powertrain systems, mobile connectivity, advanced driver-assistance systems, maintenance monitoring, and several others are attracting more buyers in the automotive industry. In the eyes of several industry experts, this sector will grow at a steady rate, given the stable rate of oil prices and the advent of newer technologies. However, this does mean that we can completely rule out some critical automotive industry challenges. The success of automotive companies largely depends on how they take advantage of some surprising opportunities that come their way to effectively tackle some serious automotive industry challenges that they may have to face. Industry players must make huge investments in meeting tightened mpg and emissions requirements, develop new powertrains, continue to expand in markets around the world, and develop new vehicles to feed changing transportation needs.

While the feasibility of advancements such as autonomous vehicles is still in talks, many in the industry feel that the vision of self-driving vehicles populating the roads in the next decade is highly optimistic. Especially after several cases of loss to life and property reported from autonomous vehicle accidents, looks like further advances in technology and affordability are required until we are finally ready to welcome such innovations. However, focusing so much attention and resources on the captivating prospects of the self-driving world may make for good reading, marketing, and investor interest. But it could prove to be a dangerous distraction for the auto industry and the real automotive industry challenges faced.

Emissions and fuel consumption requirements

This is perhaps one of the most pressing automotive industry challenges that players in this sector are undergoing. Adhering to the increasingly restrictive emissions and fuel-consumption requirements in the western world are becoming a hurdle for automakers. One might think that the easiest solution to this can be to build a single car model that adheres to these requirements. However, In the US, an automaker’s entire model lineup, including SUVs and light trucks, has to maintain an average level of higher mpg and lower emissions. Currently, automakers are expected to have to improve fuel efficiency by at least 20 percent and this is expected to shoot up to 60 percent by 2025, depending on the company and regulation.

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Automotive Manufacturing Company Customizes Value Proposition for their Customer with The Help of Market Assessment Solution

Infiniti PR Infographic Case Studies 2LONDON: Infiniti Research, a global market intelligence solutions provider, has announced the completion of their latest market assessment solution for a renowned automotive manufacturing client. The global automotive industry has started to witness a large flow of investments in research and development in order to comply with stringent regulatory measures and increase overall profits.

“Market assessment solutions provide insights into the automotive manufacturing space regarding the demographic and economic overview, competitor analysis, location mapping, and key demand drivers. Additionally, it also provides an accurate understanding of the market dynamics thereby helping companies frame value-creating strategies,” says an expert at Infiniti Research.

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The market assessment solution offered helped the automotive manufacturing client to gain a detailed assessment of the business characteristics in terms of the organic and inorganic growth. The solution also offered insights into the prevailing market condition in order to develop a customized value proposition.

Additional benefits of the market assessment solution

  • Develop positioning based on customers preference
  • Understand potential market entry bottlenecks and help client mitigate such barriers



To know more about how our market assessment solutions helped the automotive manufacturing industry client

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Business Forecasting

Automotive Components Manufacturer Determines Product Positioning with the Help of Competitive Intelligence

automotive industry

LONDON: Infiniti Research, a global market intelligence solutions provider, has announced the completion of their latest competitive intelligence analysis for automotive components manufacturer. Low-interest rates and declining fuel prices are currently the key drivers for the growth of the automotive industry. With the growing concern for improving the ROI, top manufacturers are focusing on reinventing their business models to connect with the customers and drive loyalty.

“With the implementation of stringent government regulations to curtail emissions, customers in the automotive industry are moving towards the use of greener, fuel efficient, and sustainable vehicles, “says an expert at Infiniti Research.


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The solution offered helped the automotive industry client to understand the bottlenecks for market entry. The client was also able to identify lucrative markets and gain unique market insights to increase the market share. With the help of the analytics solution the automotive industry company also gained substantial information about the competitors and the latest technologies to stay relevant in the market and gain substantial information about the competitors and the relevant technologies

Additional Benefits of The Competitive Intelligence Solution

  • Helped to anticipate the market disruptions and interpret events
  • Analyzed the strengths and weaknesses of the competitors to help make better business decisions
  • To know more, request a free proposal

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Answers to the questions

Automotive Market Analysis – How Competitive Intelligence Can Help Automotive Firms to Offer Low-cost Solutions

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LONDON: Infiniti Research, a global market intelligence solutions provider, has announced the completion of their latest analytics engagement for a leading automotive sector client. Current innovations taking place in the automotive space are compelling manufacturers to commercialize their businesses and revenue models to better connect with the customers and drive loyalty. Also, there is a concurrent demand for automobile products from emerging economies, which is further pushing companies in the automotive industry to improve business outcomes through M&A and better investment decisions.

The recent economic crisis has caused a considerable decline in the growth of the automotive sector and manufacturers are facing the need to adapt to stay competitive in the market. Competitive Intelligence helps companies to gather information about the competitors and their offerings and tailor their product offerings to suit the customers’ requirement.

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The solution offered helped the client to keep track of the competitors’ plan and actions and the activities of the suppliers. Furthermore, they were also able to compare the prices of the services offered with that of the competitors and provide low-cost solutions to customers.

Additional benefits of the competitive intelligence solution 

  • Gained accurate information on the stakeholders
  • Identified lucrative markets for their product offerings


To know more about how our competitive intelligence solution helped the automotive sector clientAsk an analyst

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The Bright Side: Opportunities and Challenges in Automotive Manufacturing

Over the past few years, the global rate of automotive manufacturing has been at an all-time high. Despite this success, several factors deprive automotive manufacturers from the pleasure of resting on their laurels. Wonder why? The increasing expectations of the customers from the automotive sector and the mounting competition in the market are some of the key reasons behind this competitive scenario. Cars are no more seen only as a status symbol that they once used to be. Today, automotive manufacturing is more about making machines that are smarter, easier to use, and more connected. Also, with a wide range of competitors in the market, customers are spoilt for choice in terms of the features and design of cars. Therefore, automotive manufacturers are put in a challenging situation when it comes to responding to these changes in the market. But what the players in automotive manufacturing need to do is to figure out ways in which they can turn this adversity into advantage.IR_Brochure

Stand out from the rest

What attracts a potential customer first towards a car is its design. This is one of the critical challenges that players in the automotive manufacturing sector face. Companies in the automotive manufacturing sector must ensure that their vehicles are designed to stand out from the crowd and attract more eyeballs from the crowd. Customers of today like things that are unique and give them a sense of value for money. Especially in this very competitive scenario, companies operating in this industry have to continuously re-invent themselves and provide new and varied product offerings to the customers. The pressure from the competition must motivate the automotive manufacturers to develop and maintain a healthy design team.

Smarter vehicles

Except for the designs and very few additional features, the cars on the roads today are very much similar to the ones that were developed a decade or two back. But with companies such as Google and Tesla introducing driverless cars and electric cars, the future of automotive manufacturing holds a lot more potential. These innovations are expected to bring about radical changes in the automotive industry. Therefore, it might look far-fetched and hard to be put into practice on short notice. But in the longer run, automotive manufacturing companies have to experiment with these technologies in their designs to prevent themselves from being considered obsolete or not up-to-date.

Fuel efficiency

Fuel prices are expected to go up in the coming years; this has become a significant concern not only for the customers but also for companies in automotive manufacturing. At this rate, customers are growing more inclined to cars that are most fuel-efficient. Therefore, automotive manufacturers need to focus their efforts on designing vehicles that use lighter materials, have better designs, and are more fuel-efficient. Manufacturers can also aim to create new models of cars with new materials in mind. For this, the design and the manufacturing process need to work hand in hand. For instance, if an automotive manufacturing company wants to experiment with aluminum or lightweight composites, then this must reflect throughout the designs and manufacturing workflow.

To know more about the latest trends, opportunities, and challenges in automotive manufacturingAsk an analyst


Infiniti’s Competitive Intelligence Solution Helps a Renowned Client in the Automotive Industry Offer Low-cost Compatible Solutions

Business Challenge 

A renowned automotive industry client with numerous offerings spread globally wanted to keep track of the competitors’ plan and actions and the activities of the suppliers. Moreover, the client wanted to compare the assortment prices for the services rendered and offer low-cost compatible solutions to focus on customer requirements. The primary concern of the automotive industry client was to profile the major automotive players in terms of the lines of product and devise a business plan that meets customers’ expectation.

Inaccurate customer intelligence strategies results in wasting up of company resources! Get in touch with our experts to leverage our customer intelligence strategies and figure out the right target customers to market your products.

Solutions Offered and Value Delivered 

To assess the current product line and understand the projected profit margins, the competitive intelligence experts at Infiniti carried out extensive research including interviews and discussions with leading stakeholders in the automotive industry. To maximize profitability and identify the growth opportunity, the experts further compiled information from secondary sources such as trade shows, competitor interviews, and government records in the automotive industry.

The competitive intelligence solution offered by Infiniti helped the automotive industry client gauge information about the competitors and their offerings and tailor their product offerings based on the customers’ requirement. The engagement further helped the automotive industry client gain accurate information on the stakeholders and predict the future market conditions. The solution offered by Infiniti also allowed the automotive industry client to focus on long-term issues such as the key risks and opportunities and identify lucrative markets to scale their product offerings.

As the preferences of customers' change, it is important to re-think the strategy. So, don’t delay, Request for more info on customer intelligence solutions.

Automotive Industry Analysis

In recent years, automotive industry players are focusing on improving the return on capital and to keep pace with the ongoing rates; the stakeholders are developing new business models. With the latest innovations taking place in the automotive space, leading manufacturers are planning to commercialize their businesses and revenue models to better connect with the customers and drive loyalty. Also, with the increase in the demand for automobile products from emerging economies, companies in the automotive industry are planning to improve business outcomes through M&A and better investment decisions. Although the industry is witnessing promising growth, several factors will influence the growth of the market in the coming years. These include:

  • Political uncertainty: The ongoing fluctuations in policy, leadership, and other dynamics have affected the vehicle sales both in the US and Europe. The policies proposed by the countries regarding trade and environment regulations are changing – creating uncertainty in the purchase of newly launched vehicles.
  • Economic crisis: With the recent economic crisis, there has been a considerable decline in the growth of the market and car manufacturers are facing pressures to adapt their offerings to stay competitive in the market. Various automotive manufacturers are refining their product architecture to offer low-cost models to efficiently reach out to the customers and sustain their presence in this ever-competitive world.

The shrinking customer base results in fewer sales, which finally leads to direct loss of revenue! So, is your company prepared to meet the requirements of your target customers?

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Future of Automotive Industry

The future of the automotive industry will be marked by digitization and increasing automation in terms of autonomous driving and electrification. These changes will transform the traditional manufacturing space and help industry players diversify toward on-demand mobility services and data-driven services.


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