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automotive supply

Winning in the Automotive Supply Industry: Strategies for Emerging Companies

The proliferation of automotive technology and intensifying competition between well-established automotive supply companies and emerging market players remain at the top of the agenda for the C-suite. Notably, the emerging market players are radically disrupting a wide range of industry segments, due to which leading automotive supply firms face challenges in terms of market differentiation, expansion, go-to-market opportunity, and product development.

Businesses in the automotive supply industry must devise effective strategies and keep track of decision criteria to adapt and make organization-wide changes. Ideally, the strategies must be based on three aspects, i.e., product development, technical expertise, and innovative go-to-market methodologies.

Get in touch with our research experts for industry-specific insights and custom market intelligence solutions.

Succeeding in the increasingly competitive automotive supply industry

To better understand these aspects, we interviewed representatives of leading automotive supply companies. Based on these insights, we have curated a list that explains the strategies to succeed and win globally in the increasingly competitive automotive supply industry.

Retaining leadership in new product development

A majority of automotive companies with a global reach have innovation and product development as a topmost priority on their business agenda. Global leaders within the automotive supply industry set aside many resources and invest in R&D when compared to the other players for whom product development is not a priority. Moreover, product research and innovation are considered crucial in addressing end-customer needs and retaining market position in most cases.

Maintaining a technology advantage by bridging the gap

The use of innovative technology can aid businesses to gain an edge in the automotive market. Keeping abreast of technology must be a strategic priority for executives looking to capture a fair share of the market. However, addressing these issues will require businesses to invest in research and analysis. The need to maintain a technology advantage comes not only from well-established market players but also from stricter compliances and industry standards in both developed and emerging markets.

The rising industry standards for fuel efficiency, stricter recall policies, and enforced repair and replacement guarantees by OEMs will require automotive supply companies to improve product technology and quality to stay in the market.

Whether you’re an emerging automotive supply company or a well-established player looking to expand into new market segments, our best-in-class research methodologies can provide you with accurate data on market developments and insights you need to know to break into a new market. Request a free proposal right away.

Differentiating through value-added services and go-to-market methodologies

In today’s scenario, automotive supply firms must provide solutions and value-added services to differentiate themselves. This is especially important if you’re an emerging market player who has just set foot and looking to expand your business in a new market segment. An in-depth comparative analysis of go-to-market strategies used by leading automotive supply companies and emerging players reflects the fact that they are starting from different points but wish to achieve a similar end goal.

Automotive industry experts at Infiniti Research recommend emerging market players must devise a global branding strategy backed with in-depth brand research insights to expand reach outside their home markets.

A three-step approach for emerging automotive supply companies

Our experts have outlined a three-step approach for emerging companies to succeed in the quickly changing competitive landscape based on our market knowledge and expertise in creating branding strategies for leading automotive supply companies.

1. Gather extensive intelligence on the competition

Given the remarkable speed at which players from emerging markets are setting foot in the automotive supply industry, it is crucial for businesses to track and analyze the competitive landscape. Emerging companies must also form a vision of future industry developments and growth aspects to survive amid the competition in global markets.

With in-depth market and competitive intelligence, businesses can identify areas for action and create breakthroughs in product innovation, product development, branding, and many such areas.

2. Develop a winning mix of strategies to address your needs

Developing a winning mix of strategies requires in-depth market research insights. Acting upon market data can help automotive supply companies find specific areas that require an overhaul or end-to-end transformation comprising diagnostics and changes to address their business needs. Our research experts can provide tailor-made solutions based on your unique requirements and help you address your challenges. Request a free brochure to know more.

3. Prepare for the global shift

Keys to creating a successful global competitive strategy in the automotive supply industry include M&As, partnerships, and alignment of business goals and strategic plans. Hence, finding the right balance of authority, setting KPIs to track performance, and developing a robust governance model are critical to preparing for future shifts.

In today’s complex business world, the tectonic shifts and pace of change are faster than one would have expected them to be a few years ago. This requires automotive supply companies to stay proactive and prepare their businesses for the inevitable shifts in the future. Besides these shifts, globalization is expected to impact developments within the automotive supply industry. And leading players in the automotive supply industry agree that a globalized market offers more opportunity than pose a risk for companies well-equipped to tackle dynamism.

Based on research, several factors are found to impact growth in the automotive supply industry. Request more information to gain comprehensive insights into each of these factors and learn how you can tackle these challenges with custom market intelligence.

qualitative vs quantitative research

Champion Your Industry and Spearhead Progress with Competitive Benchmarking Solutions

Rising competition, changing market dynamics, and the constantly increasing population has made every industry a challenging and competitive space. Previously demanding sectors, such as healthcare, manufacturing, and telecommunications, have become increasingly competitive, and companies struggle to establish themselves. Staying ahead of the curve, keeping track of competitors’ strategies, identifying and meeting a certain standard – these are necessities in a competitive world.

Tracking competitors’ strategies and keeping abreast of new initiatives in the market is difficult and requires a specific set of skills. Therefore, many industry leaders have turned to research firms to leverage competitive intelligence solutions and gain an unparalleled strategic edge. Competitive intelligence solutions include company profiling, developing competitive pricing strategies, understanding customers’ response to pricing, and competitive benchmarking.

Overcoming industry challenges and staying ahead of competitors requires unparalleled strategies and a comprehensive understanding of your market. To learn how our competitive benchmarking solutions provide in-depth insights into your industry, request a free proposal.

What is Competitive Benchmarking?

Competitive benchmarking involves analyzing a company’s performance as per various metrics and comparing it with key competitors’ performance. This helps businesses and professionals understand their standing in the market, gain insight into competitors’ strategies and market share, and keep abreast of performance gaps or weaknesses within the market. Additionally, with these insights, companies in all industries can identify successful strategies and recent technological advancements used by industry leaders, adopt them, and improve the position of their business in a competitive market.

Infiniti’s competitive benchmarking solutions have helped companies overcome various industry challenges, reduce costs, and improve profit margins. Our experts assist businesses in varying industries and help professionals develop data-driven strategic decisions, innovative initiatives, and leading marketing approaches. In this article, Infiniti’s competitive intelligence experts discuss the value of competitive benchmarking in various industries using our recent successes as examples.

Learn how competitive benchmarking can propel your company forward, expand business operations, and overcome potential risks, by speaking to our experts.

Launched a Successful New IoT Platform with Competitive Benchmarking

Internet of Things (IoT) has taken the world by storm and created niche markets within various industries, including industrial manufacturing. An industrial manufacturer based in the United States sought to enter the IoT services market, optimize production, and increase customer satisfaction. To ensure this initiative was successful, the manufacturer required a comprehensive understanding of current suppliers in the IoT services market. This included understanding pricing strategies, changing market dynamics, and product offerings. Infiniti’s competitive benchmarking experts developed a four-phased approach to help the industrial manufacturer, including planning, data aggregation, data analysis, and reporting. The insights procured from this helped the manufacturer understand the IoT services market, route investment in profitable segments, and leverage predictive maintenance and planning. Lastly, Infiniti’s competitive benchmarking solution helped the client launch a cloud-based IoT platform that provided various benefits, including reduced costs and improved visibility into operations.

Reduced Operating Costs and Realized Significant Savings

The automotive industry is highly competitive and requires data-driven decision making. Infiniti’s competitive benchmarking solution helped an automotive manufacturer tackle challenges such as the demand for new technologies, supply chain shortcomings, and financial issues. The competitive benchmarking engagement involved process benchmarking, strategic benchmarking, and performance benchmarking. The insights procured from the varying types of benchmarking helped the automotive manufacturer successfully understood their current market position. With our engagement, the client gained a comprehensive understanding of how industry leaders addressed similar challenges and gained perspective regarding where their business stands in the market. With the insights from our competitive benchmarking engagement, the automotive manufacturer identified and adopted improved business models, reduced operating costs by 20%, and realized $7.8 million.

Improved Operating Margins and Increased Productivity Substantially

A US shipbuilding company sought to gain a comprehensive understanding of key players in their industry, competitors’ strategies, and industry leaders’ decision-making processes. The shipbuilding industry player witnessed a steady decline in productivity, difficulties with cost growth, and high operating margins. With Infiniti’s competitive benchmarking engagement, our experts assisted the client by providing them with in-depth information regarding the market. Our experts conducted in-depth market research, an industry best practice assessment, and a market opportunity analysis during the engagement. With these three phases, the insights procured enabled crucial changes within the shipbuilding company and propelled its growth. Our solution helped the client improve their operating margins by 10%, increase productivity by 31%, understand and replicate efficient cost-cutting strategies, and identify unmet needs in the market.

Identifying and adopting the best strategies for your business can be a highly challenging prospect. Request more information to learn how our competitive benchmarking solutions can tackle these challenges efficiently.

Automotive Cybersecurity Market + Market Opportunity Analysis

The Automotive Cybersecurity Market: The Development of Autonomous Cars and Other Notable Growth Drivers

As dependence on digitization increases, all industries must take an extra step to ensure the safety and security of all consumers. Similarly, connectivity within the automotive sector has progressively increased, and Bluetooth systems, among others, have taken the industry by storm. To ensure the safety and security of consumers, OEMs have started to cooperate with suppliers, and automotive cybersecurity has become a primary focus. This has propelled growth in the automotive cybersecurity market.

Personal mobility and the increasing need for communication due to hectic schedules require consumers to stay connected constantly. Consequently, establishing and maintaining the safety of this connectivity has become a focus for consumers as well. There is an increasing number of vehicles on the road, and crucial parts like steering, brakes, and engines are dependent on computer systems. This dependence on computer systems has given rise to the need for the automotive cybersecurity market.

Why is automotive cybersecurity vital? The automotive cybersecurity market works towards ensuring that computer systems within vehicles are properly protected. Without this protection, car owners, for instance, risk losing important data or, in certain cases, even control of the car to hackers. Automotive cybersecurity protects personal data, crucial systems within the vehicle, and the consumers themselves from theft or harm.

The automotive cybersecurity market has grown exponentially over recent years, and it continues to grow unencumbered. Therefore, automotive cybersecurity market players must be aware of the opportunities for growth in their market and take pre-emptive initiatives to stay ahead of their competitors. In this article, Infiniti’s market opportunity analysis experts discuss the notable growth drivers and challenges in the automotive cybersecurity market. Additionally, the experts detail how a market opportunity analysis can help companies grow.

Digitization will continue to grow as industries adapt to the post-COVID era. Request a FREE proposal to learn how automotive cybersecurity market players can capitalize on increasing connectivity and technology dependence.

Notable Growth Drivers in the Automotive Cybersecurity Market

The need for the automotive cybersecurity market is no longer a debate. However, demand alone cannot propel growth in the market. Therefore, Infiniti’s market opportunity analysis experts analyzed the automotive cybersecurity market and identified the following three notable drivers that significantly prompt growth in this market:

Development of Autonomous Vehicles

Recently, major automakers and OEMs have been investing in and developing autonomous vehicles. These vehicles are highly dependent on efficient autonomous vehicle systems and high levels of connectivity. Developers are aiming to make vehicles completely automatic and minimize human input substantially. While this is a sign of tremendous growth and technological development, without appropriate security, it can put consumers at significant risk.

This advancement in the automotive industry has led to increasing demand for the automotive cybersecurity market among OEMs and automakers. As R&D continues, the need for automotive cybersecurity systems will continue to grow. Market players must shift their focus to creating all-encompassing systems that can ensure the safety of data and consumers in autonomous vehicles.

Electronic Control Units (ECUs) and Cloud Computing

The incorporation of radios in vehicles is one of the most enjoyed additions to vehicles for many consumers with hectic schedules or professions that require long-distance travel. Over time these systems have shifted from fixed in audio systems to screens that allow consumers and mechanics to access and control in-vehicle systems. These electronic control units enable consumers and mechanics to conduct complete diagnostics on vehicles without dismantling the vehicle. However, if these systems are hacked, it could give hackers access to crucial safety features, such as airbags, and put consumers’ lives at risk.

Additionally, ECUs allow consumers to connect their phones, laptops, and various other cloud-based applications to the car. This may be used for music, infotainment, or other forms of entertainment and communication by car-owners. However, cloud computing includes access to various types of data that may be present on the consumer’s phone and other personal devices. If ECUs are not protected, hackers will have access to the vehicle and the personal data of the consumer. Therefore, automakers and OEMs need to ensure the safety of ECUs, which has led to increasing demand in the automotive cybersecurity market.

Regulatory Mandates and Standards

Governments worldwide have become aware and highly cautious of cyber threats and the theft of personal data. Identity theft, stolen access to financial information, and hacking into citizens’ communication and interaction are some of the recent cyber threats that governments are attempting to curb. The increasing number of personal vehicles on the roads and high dependence on connectivity has encouraged governments to enforce regulations regarding cybersecurity across platforms.

Similarly, the US government proposed legislation to isolate critical software systems and safeguard the entire vehicle against cyber threats. Additionally, major automakers, OEMs, and suppliers are establishing standards and promoting the use of appropriate automotive cybersecurity systems across vehicles. As the adoption of cybersecurity systems increases steadily, the automotive cybersecurity market is expected to grow.

Staying ahead of market trends and growth drivers is the first step towards leading your market. Speak to our industry experts and understand what your next step to being a leader in the automotive cybersecurity market should be.

Restraints in the Automotive Cybersecurity Market

Although the automotive cybersecurity market has been growing exponentially, there are various restraints to this trajectory of growth. The supply chain in the automotive industry is highly fragmented, which leads to a higher number of stakeholders and a combination of contributors to every unit. Additionally, OEMs do not have the technical capabilities to incorporate cybersecurity systems into the vehicles and require cybersecurity system suppliers to do the same. This often leads to a time lag in the delivery of cybersecurity updates and hampers the growth of the automotive cybersecurity market.

Why does The Automotive Cybersecurity Market Need Market Opportunity Analysis?

In a rapidly evolving market like the automotive cybersecurity market, companies need to keep abreast of market opportunities. To stay ahead of competitors, one must identify, evaluate, and strategize for market opportunities before other market players. Infiniti’s market opportunity analysis enables automotive cybersecurity market players in the following ways:

  • Companies can identify ideal M&A opportunities to scale
  • They can also understand and solve for consumers’ pain points
  • Keep abreast with competitors’ performance issues
  • Identify growth opportunities and assess the market’s readiness for their offerings

In the automotive cybersecurity market, a market opportunity analysis can also assist companies in understanding regulatory mandates, stay ahead of market dynamics, and devise appropriate strategies to cope with changing ECUs and vehicle software systems. Staying a step ahead of the market can be the biggest differentiator for companies in a fast-growing market.

Infiniti’s market opportunity analysis can help your organization set an industry standard. As competition grows, learn how our research solutions can propel you to the top by requesting more information.

Electric Vehicles Market + Market Trends Analysis

The Evolving Electric Vehicles Market: What trends and challenges do the future hold?

The automotive industry has seen a major change in recent times. As technology advances, the need for personal mobility increases, and the demand for environmentally friendly options increase, the automotive industry has shifted its focus towards better alternatives. This search for alternatives has led to increased demand for alternative fuels and electric vehicles.

The electric vehicles market has seen immense growth over the past decade. Moving from prototypes to popular luxury electric cars and electric busses, the market is on the ideal path to proliferation. There is a range of options within the electric vehicles (EVs) market, including hybrid EVs, plug-in hybrid EVs, and battery EVs. This range enables consumers to choose the best option for themselves while shifting from vehicles that use traditional petroleum fuels.

Some of the most significant contributors to the increasing demand for electric vehicles have been the need to reduce personal carbon footprints and the high prices of petroleum. As economies struggle due to various factors, and fossil fuels run short, millennial and Gen Z consumers are willing to invest more in safer, environmentally responsible alternatives.

While the COVID-19 pandemic took a huge toll on the automotive industry, experts forecast further growth for the electric vehicles market as most countries work towards recovering their economies and industries. However, as electric vehicles market players aim towards recovery, it is important to identify and understand the trends influencing demand and the market. Therefore, Infiniti’s industry experts discuss the impact of COVID-19, major trends, and challenges in the electric vehicles market in this article. Additionally, they discuss the role of market trends analysis in an evolving and easily influenced market, such as the electric vehicles market.

As the world recovers from the COVID-19 pandemic, find out how the electric vehicles market can effectively prepare for the post-COVID era by requesting a free proposal.

The Impact of COVID-19 on the Electric Vehicles Market

The automotive industry and electric vehicles market witnessed a substantial decrease in demand since the advent of the COVID-19 outbreak. The pandemic has negatively impacted the global economy and significantly damaged GDPs in many developed and developing countries. This has led to job losses, further economic disparity, and reduced income for working professionals in every stratum of the corporate hierarchy. With lower disposable income, consumers are focused on near-time expenses, and major investments such as personal automobiles have been termed an unnecessary expense.

Additionally, due to nationwide lockdowns and imposed safety measures, many manufacturers were required to pause all production for an indefinite amount of time. The economic toll and supply chain challenges posed by this sudden disruption has caused significant losses for companies. Although electric vehicles require lower consumption costs daily, the initial investment is higher than that for most traditional fuel-run vehicles. Fuel prices have seen a momentary reduction in many markets, affecting the demand for electric cars shortly. However, all industries are on the path to recovery. Electric vehicle market players must prepare for the trends and challenges that await them on the other side of the pandemic.

Major Trends in the Electric Vehicles Market

As the electric vehicles market continues to grow, various trends will impact this growth and propel or challenge it. Infiniti’s industry experts identified the following three major trends that continue to impact the electric vehicles market:

Electric Vehicles Market + Market Trends Analysis

Rising Environmental Concerns

Increasing awareness about the impact of various industries on the current environmental situation has changed consumers’ buying behaviors substantially in recent years. The automotive industry and automobiles particularly are notoriously known to produce an extremely high amount of carbon emissions. This has led to consumers being more cautious and selective about their transport and automobile investments. With a range of electric vehicles, from bicycles to large vehicles like busses, consumers are now more likely to choose EVs over vehicles that require fuel. However, this has also led to an increase in more stringent government policies and regulations. With particular stipulations for the emission levels permitted in different vehicles, electric vehicle market players must be particularly careful in their development and production processes. This requires major investment, increased scrutiny, and compliance with various regulations.

Investment and Government Support

Due to the rising concerns regarding carbon emissions and environmental safety, governments and automakers have increased investments in the electric vehicles market. Governments worldwide are taking initiatives to increase deployment of EVs on the roads. Additionally, through the shock of the COVID-19 pandemic on economies, many governments launched schemes and offers to encourage investment in automobiles. As the industry starts to recover, governments are attempting to promote EVs and reduce dependence on fossil fuels.

Consumers’ Preferences

In a challenging and competitive market like the automotive industry, understanding consumers’ preferences are crucial to success. As consumers shift their focus from fuel-dependent vehicles to EVs, the demand for variety and options is expected to rise substantially. While many automakers have started offering EVs ranging from hatchbacks to luxurious sedans, there will be a growing demand for more options as this shift takes place.

Additionally, since vehicles are widely-used for personal mobility of varying kinds – short trips to work, weekend trips, or long road-trips – consumers will demand a higher battery range. The presence of gas stations along highways and within cities enables consumers to travel long distances conveniently. This requires companies to ensure that their vehicles have lasting power and can be conveniently recharged, even on long trips. Many car rentals companies have shifted to EVs, and are often preferred by Millennial and Gen Z consumers. However, to attract a wider audience, including older consumers, or consumers with hectic schedules, the electric vehicles market will need to adapt and grow.

In a fast-paced and growing market, staying ahead of the trends is the first step to long-term success. Speak to our industry experts to learn how Infiniti’s market trends analysis can help your organization prepare for the future of the electric vehicles market.

Challenges in the Electric Vehicles Market

While the electric vehicles market is expected to witness growth in the post-COVID era, automakers must be aware of and strategize for the various challenges within the industry. Due to the low demand for EVs currently, R&D costs require automakers to attribute higher prices for EVs. While these costs will reduce as demand increases, demand for EVs will not be par with the demand for fuel-dependent vehicles shortly due to the price difference.

Additionally, the lack of available charging stations along highways or within cities can affect the demand for EVs. Electric vehicle market players must set up a higher number of charging stations for consumers with EVs. These challenges can be tackled if the market continues to grow. However, these challenges may simultaneously be a detriment to growth. Therefore, electric vehicle market players need to strategize for these challenges and help the market grow.

The Importance of Market Trends Analysis in the Electric Vehicles Market

The various trends in any industry can propel or disrupt growth in the market. In the automotive industry, various trends can have a major impact on the development, investment, and production processes for automakers. The different market trends similarly impact the electric vehicles market. Therefore, market players must identify, evaluate, and understand the various trends in the market.

Infiniti’s market trends analysis is among the best ways for automotive industry players to understand their market, prepare for the various market trends, and succeed. Here’s how Infiniti’s market trends analysis can help:

  • This analysis helps companies study the market and identify major market trends that may impact their operations soon.
  • It also enables companies to strategize for these dynamic market trends appropriately and avoid sudden shocks within their supply chain and production processes.
  • With market trends analysis, companies can forecast possible growth drivers within trends and stay a step ahead of their competitors with pre-emptive production according to consumers’ needs and market dynamics.

In the electric vehicles market, market trends analysis enable companies to understand how the varying environmental changes affect them, understand and comply with the various government regulations, and forecast consumers’ demands. This helps players stay ahead of their competitors, increase consumer satisfaction, create effective market expansion plans, and realize huge savings within their organization.

Understanding a complex market requires expertise and appropriate guidance. Request more information to learn how Infiniti’s experts can guide companies in the electric vehicles market.

Chinese automotive industry

Devising a Response Framework for a Chinese Automotive Industry Client to Combat COVID-19 Challenges

The coronavirus outbreak has had a major impact on the Chinese automotive industry and has led to an unforeseen disruption of business operations. After the SARS outbreak in 2003, China had never witnessed such a huge impact until the coronavirus outbreak. As such, leading automotive companies in China have already begun implementing changes in business operations to ensure business continuity. While some others are still struggling to maintain productivity and retain employees. Implementing a sound business continuity plan is the key to survive through these tough times and emerge stronger.

This case study outlines how our market potential analysis helped a company in the Chinese automotive industry to create a threat-map dashboard, devise sound marketing strategy, and develop better digital capabilities amidst the coronavirus outbreak.

To rebound from the impact of coronavirus pandemic and rise stronger post-COVID-19 crisis, companies in the global automotive sector will need to address the immediate challenges that COVID-19 brings and create a detailed plan to ensure business continuity. Our market intelligence experts can help you to achieve these strategic objectives. Learn more here.

Business Challenge

The client is an automotive manufacturer and supplier based out of China.

As the Chinese automotive industry client had to make difficult choices such as closing production facilities and suspending discretionary spending owing to the fast-spreading COVID -19 pandemic, the company witnessed a decline in sales by 20%. Also, the client faced difficulties in addressing near-time cash management challenges and ensuring organizational resiliency.

The Chinese automotive industry client, therefore, wanted to prepare themselves to survive through these tough times and emerge stronger in the post- COVID -19 environment. In addition, as the number of individuals infected by the COVID -19 pandemic was decreasing in China, the client wanted to undertake a robust strategy to revive the supply chain, match demand and supply requirement, and protect their workforce to restart their production facilities. They also wanted to evaluate the market potential for their products and services in the post- COVID -19 environment and plan accordingly.

Other key objectives of the Chinese automotive industry client included:

  • To safeguard the supply chain operations by understanding supply chain risks and taking actions to address disruption
  • To implement robust marketing and sales strategies that suit the changing customer behavior
  • To manage cash outflows and improve liquidity
  • To identify internal and external risks and develop a range of scenarios to predict future outcomes
  • To increase local production and temporarily stop reliability on foreign imports

Wondering what to do next? Get in touch with us for more insights on COVID-19’s impact on consumers and businesses across various sectors.

Our Integrated Approach

Our market potential analysis followed a five-phased approach:

In the initial phase, the experts helped the Chinese automotive industry client to create a threat-map dashboard that provided them with real-time data. The threat-map dashboard also helped the client’s employees, suppliers, and customers to keep pace with the potential impact of COVID -19 and the company’s response.

In the second phase of the market potential analysis engagement, the experts helped the Chinese automotive industry client to develop contingency plans and implement safety protocols to tackle the coronavirus challenges.

In the third phase, our experts worked closely with the client’s direct suppliers to gain insights about their production capacity and potential issues. Also, the experts segmented the client’s key suppliers based on their production capacity. Besides, the experts helped the Chinese automotive industry client to identify the right set of suppliers to deal with product shortages.

The fourth phase involved devising a sound marketing strategy. After closely analyzing customer data, the experts recommended the client to consider supporting dealerships in providing demonstrations and test drives for customers at home.

The final phase of the market potential analysis involved conducting financial stress tests to examine the client’s current cash flow and balance sheets.

Business Outcome

With Infiniti’s help, the Chinese automotive industry client was able to devise a thoughtful approach to revive the supply chain, match volume to actual demand, and protect the workforce post- COVID -19 -crisis. The experts also helped the client to identify alternative suppliers in non-impacted regions of the world and improve visibility to supply chain risk.

By leveraging Infiniti’s market potential analysis, the client was able to adjust production needs as per the requirement and ensure employee safety. Also, by identifying and mitigating the risks of declining sales, the client was able to maintain financial health. Besides, the experts helped the client to understand potential supply chain risks and take actions to address disruption.

The creation of the threat-map dashboard helped the Chinese automotive industry client to encourage transparency and stay updated about the potential risks of the coronavirus outbreak. Also, by analyzing the potential for product shortages and possible revenue decreases, the experts helped the client to set new production priorities to manage demand-supply requirements.

The experts at Infiniti Research also helped the Chinese automotive industry client to identify local suppliers to support them at times of immediate requirements and product shortages. In addition to this, the client was able to understand how COVID-19 affected customer concerns, adjust marketing to focus on available models, develop better digital capabilities, and enable online sales channel.

We can help you to prepare for the rebound, gain agility, and ensure rapid response post- COVID -19 crisis. Request more info here.

automotive industry

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.

Request a free proposal to gain region-specific insights on the challenges and opportunities in the automotive industry.

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.

Looking for solutions to address your key business challenge? Get in touch with an expert for unparalleled business insights.

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.

Learn how our solutions can help you stay updated with the latest automotive industry trends

Automotive collision repair

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.

Chinese 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.

 

Get in touch with our experts to know more about the latest automotive industry trends and learn how our solutions can help overcome potential challenges.

demand management

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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demand management

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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