Tag: automotive industry trends

US automotive industry

Identifying Lucrative Market Opportunities for a European Automaker

“For automakers looking to enter the international market, the US automotive industry is still the one of the most lucrative markets in the world, after China.” says a market intelligence expert at Infiniti Research.

With the fast pace of change in the automotive space and related technologies, the US automotive industry is expected to witness several risks and challenges over the coming years. However, new technologies such as driverless cars, increasing preference of luxury vehicles by the millennial group and Gen Z customers, and rise of tariff wars will drive future demand. In order to succeed, automakers will need to adapt quickly to the evolving landscape and embrace challenges and opportunities coming their way. In addition, automakers looking to enter a new market must invest in market opportunity analysis to revamp business models by understanding the current and potential market requirements.

Establishing a foothold in the US automotive industry is extremely challenging for automakers due to rising trade pressures and legal hurdles. This is where our market opportunity analysis can help. Request a FREE proposal today!

Business Challenge

The client is a well-known European automotive company looking to expand their business operations to the United States. Although the client had over 7 years of experience in serving customers across the European market, they did not wish to take a chance. Before making the market expansion to the United States, they wanted to conduct a market opportunity analysis. To do so, they approached the experts at Infiniti Research.

Top challenges faced by the company were:

US automotive industry challenge #1: Tariff wars

With the US automotive industry introducing higher taxes on steel and aluminum imports from China and US leaders inflicting taxes on car imports from the European Union, the client wanted to understand all the tariff risks in the US automotive industry. In addition, the client wanted to understand the impact of emerging regulations on the automotive industry in the US.

US automotive industry challenge #2: Divergent trends

The US automotive industry trends, especially the digital transformation and technological advancements have put automakers in a state of disruptive transformation. Also, US consumers’ demand for more digitalized experience compels automotive companies to incorporate technological offerings. Hence, before entering the US automotive industry, the client wanted to identify the right scale of opportunities and identify the changing trends in the market.

US automotive industry challenge #3: Identifying lucrative customer segments

With the millennial group and Gen Z customers becoming the active car buyers in the United States, understanding millennial customers’ needs and requirements are becoming vital for companies operating in the US automotive industry. The client, therefore, with the help of the experts at Infiniti Research, wanted to understand the preferences of the millennial group and make changes in their business plans to lure millennial consumers.

US automotive industry challenge #4: Increasing demand for environmental sound vehicles and technologies

With major automakers in the US automotive industry planning to launch more hybrid and electric vehicles to meet the needs and demands of US consumers, the client realized the need to understand the business strategies of major automotive companies in the US and revamp their business plans and offerings to meet the ever-increasing demand of consumers.

Although divergent trends and increasing demand from the millennial consumers open up new opportunities for companies in the US automotive industry, they also bring about major challenges for automakers. Is your company equipped to meet the rising challenges? If not, CONTACT US to know how our solutions can help.

Solutions Offered

With over 15 years of experience in serving various automakers across the globe, we helped the client to devise an efficient market expansion plan.

  • The initial phase of the engagement involved US market scanning and monitoring. In this phase of the engagement, the experts at Infiniti Research actively monitored the external environment to identify customer needs, forecast competitive action, and identify the emerging regulations in the US automotive market. This phase of the engagement helped the client to assess the changes in emerging regulations and understand the tariff risks in the US automotive industry. By understanding the tariff risks and regulatory policies, they were able to prepare themselves for changes pertaining to industry regulations.
  • The next phase involved conducting trend analysis. By leveraging Infiniti’s expertise in offering market trend analysis solution, the experts at Infiniti Research helped the client to gain in-depth insights into the US automotive trends and adapt to the current market requirements. In addition, the experts helped the client to incorporate technological offerings to meet consumers’ demand for digitalized experiences.
  • In the third phase of the engagement, the experts conducted customer segmentation analysis. With the millennial group becoming more important for luxury automakers in the US automotive industry, the experts segmented them into various groups based on their needs and characteristics. With this, the client was able to focus on lucrative customer segments and efficiently utilize their marketing budget.
  • The final phase involved conducting competitive intelligence engagement. In this phase, the experts closely monitored the client’s competitors’ plans and actions regarding new launches. This helped them to plan their strategies accordingly.

Results Obtained

With the insights obtained from Infiniti’s market opportunity analysis, the client was able to establish themselves in the US automotive industry within two years of entering the market. Also, they were able to capitalize on new market opportunities and outpace the market competition. Furthermore, the company was able to achieve savings of over $3.6 billion.

Request for more info to know how our solutions can help your company to efficiently devise a market expansion plan.

US Automotive Industry Overview: Automotive Trends and Opportunities

US Automotive Industry Overview

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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.

 

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.

Market Intelligence

Competitor Analysis for an Automotive Industry Player – An Infiniti Research Success Story

Automotive Industry Competitor Analysis 

Business Challenge 

The past few years, the automotive industry has taken huge leaps in terms of technological innovations. Moreover, with new players increasingly entering the industry; new processes, customer channels, and product life cycles are expected to bring in the next wave of change in the automotive industry.

However, the recent automotive industry market research reports state that, the entry of new players has also brought about major disruptions in the market, making it difficult for existing players to expand into newer segments. Hence, for companies in the automotive industry, it is imperative to keep abreast with the industry trends and keep track of the competitors’ plan and actions.

Business Case: The rising number of automotive companies have drastically increased the level of competition in the market, making sustainability a key challenge for companies in the automotive industry. Hence, a renowned automotive industry player wanted to analyze and anticipate potential industry challenges to facilitate strategic decision making in terms of product positioning, launch, and marketing. Additionally, with Infiniti’s competitor analysis strategy, the client wanted to profile their competitors’ offerings and understand their product portfolio to devise market entry strategies and develop new products.

As economic conditions have improved, the companies in the automotive industry are focussing more on product innovation to capitalize on shifting consumer tastes. Is your business prepared?

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Top Challenges Faced by the Automotive Industry Client 

Problem Statement 1

With the recent technological advancements in the industry, the client faced increasing demand to adapt to the fast-evolving marketplace by efficiently catering to the needs of the growing population. Thus, the automotive industry client wanted to evaluate the potential bottlenecks in the automotive market and devise effective ways to enhance business efficiency.

Problem Statement 2

Their inability to understand the competitors and the new market trends proved to be costly, leading to a sharp decline in their profit margin. This prompted them to leverage a competitor analysis strategy to profile the major automotive players in the market and devise a business plan that meets customers’ expectation.

Problem Statement 3

The client wanted to refine their existing marketing models and devise effective marketing campaigns to enhance business performance.

Problem Statement 4

They wanted to keep abreast with the automotive industry trends and leverage the latest technologies to meet the new market requirements.

Our experts can provide quality solutions to empower your business. Request for more info to learn how we can help.

Solutions Offered and Value Delivered 

The market intelligence experts at Infiniti Research carried out extensive automotive industry market research with leading stakeholders in the market space to assist the client in improving their business efficiency. The competitor analysis strategy followed these phases:

Phase 1: Gathering competitive information

The initial phase involved analyzing the automotive industry client’s main competitors. The competitors were categorized into different categories based on the level of competitiveness.

Phase 2: Analyzing competitive data

The second phase involved analyzing the competitors’ information. The factors including product information, market share, marketing strategies, and competitors’ strengths and weaknesses were taken into account during the analysis.

Phase 3: Determining competitive position in the marketplace

By analyzing the competitors, the experts at Infiniti Research helped the automotive industry client to determine their market position. This helped the client to implement a new marketing strategy to strengthen their market position.

automotive industryWith Infiniti’s solution, the industry client was able to analyze competitors in terms of market penetration and product developments. This helped them tailor their product offerings based on the customers’ requirement. The engagement further helped the automotive industry client to focus on issues such as the key risks and opportunities and identify lucrative markets to scale their product offerings. Altogether, our solutions helped the automotive industry client to identify and address the potential bottlenecks in terms of the compliance requirements and enter potential markets in an agile and seamless manner.

In an industry characterized by constant disruption, reducing costs while maximizing efficiency is key, and yet the demand for innovation cannot be ignored.

Request for a FREE proposal and stay up-to-date with all the automotive industry trends.

 

Automotive Industry Analysis

The automotive industry is witnessing promising growth in the US. The automotive industry trends 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.  However, with the influx of new automotive industry trends, adjusting to changes is essential to withstand the growing competition. Also, automotive market players need to stay on top of new industry trends, technologies, suppliers, and regulations to stay a step ahead of the global competition.

Despite all these industry trends, the companies in the automotive industry are facing certain challenges:

  • Demographic changes and profound shifts in global economic power are causing massive upheavals in demand.
  • Consumer expectations are changing radically.
  • New technologies are dramatically changing vehicles, from the advent of the ‘connected car’ and enhanced driver support to better fuel efficiency and new or improved powertrains.

Furthermore, the automotive industry manufacturers and suppliers are confronted with increasing complexity as a result of increasing numbers of products and options, shorter technology cycles, increasing pressure to innovate, and global supply networks. So, automotive industry players need to balance the needs and demands of customers, investors, regulators, non-governmental organizations and the public to stay ahead of the curve.

Why Infiniti Research? 

Established in 2003, Infiniti Research is a leading market intelligence company with proven capabilities to deliver actionable granular insights across the globe. With the use of statistical, scientific methods and scientific experiments, Infiniti Research ensures intelligent business strategies.

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How Can Business Intelligence Solutions Benefit Companies in the Transport and Logistics Industry?

Challenges such as increasing compliance complexities, growing competition, volatile fuel costs, and constantly-evolving consumer demand have made it difficult for companies to sustain profitability, let alone expand their market presence. This has taken the tension between maximizing profits and cost-cutting to a new fever-pitch. With the increasing competitive pressure, companies in the transport and logistics industry have been forced to walk the tightrope of delivering a consistent brand experience and balancing price competitiveness. However, growing material and labor costs coupled with market volatility have made it difficult for companies to sustain profitability. This has compelled leading companies in the transport and logistics industry to focus on leveraging benefits of business intelligence solutions for developing effective strategies for growth.

At Infiniti Research, we understand the impact that business intelligence and analytics can have on your transport and logistics business. And to help companies in the transport and logistics industry excel in the competitive market landscape, our team of experts has highlighted the key benefits of business intelligence solutions for companies in the transport and logistics industry.

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cosmetics industry

Getting Back on Track Amidst the Changing Automotive Industry Landscape

The growth in the automotive industry has shifted to markets like US, Western Europe, and China, while their growth rate in emerging markets seems to have cooled off in recent times. At this pace, we can expect the sales in the global vehicle market to slow down over the next few years. Furthermore, at the current pace of evolution and technological advancement in the automotive industry, we believe the automotive industry is likely to witness more changes in the next decade than it has in the last 20 years. Here’s our take on some of the key automotive industry trends revolutionizing this sector:

Automotive industry trends 2019

Usage based insurance

Almost every industry in the world is greatly influenced by the Internet of Things (IoT). IoT has established a wave of connectivity even in industries such as insurance and fintech. For instance, insurance companies are increasingly using IoT data to improve their precision in assessing risk, pricing policies, and estimating a necessary reserve. It has also created significant opportunities in the automotive insurance sector such as usage based insurance (UBI). Usage based insurance (UBI) for the automotive industry is a category of motor insurance that takes into account several factors while calculating the premium. This includes factors such as the type of vehicle used, distance traveled, and the behavior of the driver. Usage based insurance encourages safe driving behavior that consequently leads to fewer accidents, which in turn helps insurance companies to reduce claims payout and improve the bottom line.

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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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