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automotive industry

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.

American Automobile Companies

Top Challenges Facing American Automobile Companies in 2019

The past couple of years have been increasingly fraught for American automobile companies due to wrenching changes in in the global economies, government regulations, technological innovations, and relative price and market dynamics. Planners in the automotive industry must now prepare and plan for some of the most fundamental transformations that the American automobile companies have ever witnessed. In order to overcome some of the critical automotive industry challenges this year, strategic planners in American automobile companies must transcend from traditional issues and address much bigger and basic concerns including:

  • Given the rise of autonomous vehicles, will the prevalence of car ownership eventually decline?
  • With the government giving more emphasis to fuel efficiency, will there be a change in the technology mix of new powertrains?
  • What are the key strategies to thrive and grow amidst a slowdown in the pace of growth in unit sales in mature markets and the shifting consumer demands?

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Key challenges facing American automobile companies

American automobile companiesNew ideas about car ownership

Monthly subscriptions are an increasingly familiar business model that is a breath of fresh air from traditional buying and leasing models for consumers. As a greater number of customers are becoming more comfortable with paying for services that they want and then canceling when they are done, eventually this may extend to the automobile sector. By paying a monthly fee for car gives consumers access to vehicles, insurance, maintenance, and roadside assistance. Furthermore, consumers could become less inclined to the concept of owning a car, due to difficulties associated with ownership such as parking costs, maintenance costs, and environmental impact.

Not prepared to overcome the challenges coming your way? Request a free proposal to know how our solutions can help you formulate the right strategies to stay prepared.

Rising market competition

The entire automotive industry in the US is moving closer to peak demand and increasingly tough competition. Several mature markets such as Japan and Europe are already facing the heat from flattening sales, and automotive industry challenges such as slow demand conditions are expected to affect the North American markets over the next couple of years. The dwindling growth opportunities mean that there will be a rise in competition for a bigger chunk of the market share.

New regulations and technological demands

American automobile companies are at the risk of facing pressure from stringent regulations that focus on reducing harmful gases and emissions from vehicles and thereby improving fuel economy. This is one of the key automotive industry challenges faced by players in the sector. Automakers are now required to make the right choices relating to technology that is in line with the changing regulatory and societal preferences.

Workforce challenge

American automobile companies are facing immense pressure due to the shortage of capable and prepared workers to meet the industry’s manufacturing expertise. Over the next decade, many jobs in the US automotive industry is expected to go unfilled due to the skill gap. American automobile companies will be threatened by the lack of skilled labor especially because nearly 20% of the current workforce in the country’s automotive sector would retire by 2030. The next task for automakers is to identify how to shape the future workforce.

Learn more about Infiniti’s market intelligence solutions

IR6

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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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


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Competitive Intelligence Assists an Automotive Components Company to Understand Their Current Market Position

In this rapidly changing business environment, competitive intelligence becomes an integral part of business management. Especially in the automotive components landscape, with options being displayed in several numbers of choices, the consumers are very particular when it comes to choosing their products. Additionally, to understand the competitors and retain a stronger foothold in the automotive components market, firms operating in this industry space have started advocating the need for robust competitive intelligence solutions. These competitive intelligence solutions help clients operating in the automotive components landscape to gain strategic insights into competitors’ assortments and prices; thereby, enhancing the ROI.IR_Brochure

With years of expertise in offering a plethora of services, Infiniti’s competitive intelligence solution helps firms identify their competitors and marketing strategies adopted by them to enhance the conversion rate. Moreover, these solutions also help automotive components industry clients improve their marketing effectiveness by implementing new sales channels and offering rebates in terms of special prices.

The Business Challenge

A global automotive components manufacturer with offices spread across several geographies was facing predicaments in assessing the industry landscape in terms of the competitors, their offerings, and product positioning. Additionally, the client wanted to gain insights into the market in terms of current opportunities, regulatory issues, and the suppliers in the automotive components industry. They also wanted to effectively streamline product information across channels, systems, and trading partners.

Our Approach

To gain insights into the market landscape and key competitors, the client contacted Infiniti’s team of competitive intelligence experts. The competitive intelligence experts at Infiniti carried out a holistic approach including interviews and discussions with leading stakeholders in the automotive components industry. Furthermore, the client was able to compile information from various exclusive sources such as company presentations, newsletters, industry forums, paid industry databases in the automotive components industry.

Automotive ComponentsWant more information about our competitive intelligence?

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Competitive Intelligence Solution Benefits:

  • Evaluated the industry and identified key areas of improvement
  • Gained insights into the effectiveness of competitors’ product portfolio and market positioning
  • Gained actionable insights and devised effective strategies
  • Optimized inventory management and tracked the stocks in real-time
  • Helped the client to stay ahead of the competition

Benefits of Our Integrated Approach

The competitive intelligence solution helped the automotive components firm to gain a deeper understanding of the competitor’s pricing strategy and pricing trends influencing the market space in just 12 weeks. Additionally, the client was able to identify the volume of sales per product and efficiently calculate the profit margins of products. This helped the client in making informed business decisions.

A must-read case study for strategy experts and decision makers looking to develop an understanding of the automotive components industry.

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IR34

Is Shared Mobility Hurting the Growth of the Automotive Industry?

Today, roads and highways are overcrowded with vehicles. Governments and activists around the world have been doing all they can to ensure efficient mobility solutions to reduce overall traffic flows, environmental pollution, and cost of vehicle ownership, and transportation. Shared mobility solutions look forward to solving such problems with transportation services that are shared among users, such as public transit, bike sharing, car sharing, carpooling, shuttle service, and neighborhood jitneys. Recent studies show that the growth of the shared mobility market is higher than the rate of global vehicle sales. The preference for such a sharing economy can transform the auto industry.

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Will Shared Mobility Slow the Growth of Auto Sales?

Although it looks likely that there will be fewer vehicles on the road due to the growth of the shared mobility market, the automakers can still reap benefits out of it if they can position themselves for the future. Since ride sharing, car sharing, and carpooling drives up the vehicle utilization rate, such vehicles will have to be replaced or serviced more often. Numerous research reports suggest that shared mobility will only partially replace car ownership.

How will the Automotive Industry React?


In a bid to increase their revenue pool, automotive manufacturers will diversify towards on-demand mobility services and data-driven services. Such shared mobility and data-driven services will ensure recurring revenues from services such as car sharing, e-hailing, software upgrades, carpooling apps, and remote services. Considering that the car rental market requires a huge investment to buy fleets, automotive manufacturers could explore rental services along with other shared mobility strategies.

The Future of the Automotive Industry


The automotive industry is highly dependent on autonomous technology that will allow the car to become a platform for passengers and drivers to use their saved time on other personal activities. The use of self-driving cars would allow the service providers to optimally reposition the vehicle, increase coverage with a small fleet, and reduce the fixed-cost base; thereby, decreasing inner-city congestion.

Automakers and their suppliers need to understand the current requirements of the consumer and design mobility solutions that cater to their needs. Although shared mobility would inhibit vehicle sales to some extent, automotive players can position themselves to reap benefits through recurring revenue streams and extended services.

To know more about shared mobility market, shared mobility solutions, ridesharing, carpooling, and automotive industry:

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Business Forecasting

Connected Cars – What’s Driving the Automotive Industry?

The global automotive industry is rapidly transforming with the growing innovations in automobile engineering and increased investment in research and development by the automobile manufacturers. Trends in automotive industry like connected cars, electric vehicles, and autonomous or self-driving automobiles are driving growth in terAsk an analystms of revenue and inventions. The automotive industry is one of the important industries in the world where  automobile manufacturers undertake a wide range of activities right from designing vehicles to selling them in the market. The connected car, one of the recent developments in the auto industry, has the potential to disrupt the automobile market with a high level of digital infiltration, which will bring a wave of change across the global market.

automotive infographic

Connected cars are touted as the next big thing” in the automotive industry and will soon replace the traditional mode of transportation for businesses and consumers alike. In simple words, a connected car can be explained as a motor vehicle that leverages mobile technology and the internet to operate and control key functions with the help of a smartphone, watch, tablet, or a desktop. These automatic cars work on the principle of IoT and are expected to offer new services to customers, which will help revamp the driver-car relationship in the near future.

Connected Cars and Their Drivers

The automotive manufacturers are increasingly adopting digital technologies across their automobile designs. Connected cars offer a wide array of technology and IoT-enabled features such as real-time traffic data, smartphone-vehicle synchronization, and driving assistance; thereby, changing the customer’s definition and usage of a motor vehicle. Today, technology led automobile engineering companies leverage artificial intelligence and telematics to deliver an exclusive customer driving experience. Connected cars offer safety, increased efficiency, better value proposition, and personalized customer experience, thereby changing the operations and functioning of the global automotive industry.

What’s driving the connected cars market, you ask? Here’s what.

connected cars

The market space for connected cars will be driven by these factors, across the globe. However, the automotive industry will face few roadblocks before achieving complete digital transformation. The challenges of the connected car market include data threats, platform incompatibility, and questions over its customer safety quotient. But for now, connected cars are the next big thing in the automotive industry and it is here to stay.

 

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Is Lithium-Ion Battery Ideal for the Automotive Industry?

The global lithium-ion battery market is a fast-growing market space and was valued at over USD 18 billion in 2015. According to our industry experts, this market is envisaged to grow at a CAGR of over 8% by the end of 2020. With the growing focus on electric vehicles, the lithium-ion battery market is sure to charge ahead. Lithium-ion, the most promising battery chemistry, came in the limelight in the early 1970s. Due to its low maintenance cost, these types of batteries have an edge over the other chemistries.

At Infiniti Research, we recently engaged in a market intelligence study on automotive lithium-ion batteries for a global automotive manufacturer and here are the key excerpts of that engagement.

The Forecast of Lithium-Ion Batteries in the Automotive Industry

Infiniti’s experienced automotive team performed a market intelligence study to understand the lithium-ion battery market and its industry demand. During the course of the research, it was noted that the industry is poised to witness significant growth in the coming years with the automotive segment exhibiting faster progress. The recent increase in the incidence of global warming causing has led to a decline in natural resources and has warranted the need for alternate sources in the automotive industry. Not just that, the soaring prices of fossil fuels have helped the lithium-ion battery market to flourish. Manufacturers in the automotive industry are looking for sustainable clean fuels, and this is a key factor driving the lithium-ion battery industry.

Li-Ion

Lithium-Ion Batteries and its Automotive Applications

With the growing pressure on various countries to reduce their carbon emissions, the automotive industry is turning towards electric vehicles. Lithium-ion is the preferred battery technology when it comes to electric or hybrid vehicles. Its higher energy density, ability to churn out more charge cycles are just a few of the many reasons to treat lithium-ion batteries with respect. Much of these can be attributed to the rising demand for automotive Lithium-ion batteries from the motorsports industry and its ability to supplement the 12V net for high-power applications such as electric power steering (EPS), brake-by-capture wire (BBW) and heating, ventilation and air-conditioning (HVAC) systems.

The Market Drivers and Challenges

Many market players have entered the lithium-ion market due to its high growth potential. The current scenario is chaotic as many end-users are still not aware of the risks and challenges in the lithium-ion battery market. According to our automotive industry experts, one of the key drivers for this market is the fact that all lithium-ion batteries are equipped with individual electronic protections to avoid electrical mishaps (minimum and maximum voltage protection, current protection, etc.).

Battery1

One of the major challenges that has been identified by our analysts is its restriction during transportation, especially by air, as batteries transported by air must be protected against short circuits using protective covers. Also, the total product cost of this battery is around 40% higher than its former counterpart nickel-metal hydride batteries.

battery 2

Our industry specialists conducted a detailed market and competitive analysis on the 12V Lithium-Ion Battery market and 48V Lithium-ion Battery market. As part of this market intelligence study, we segmented the market by application, qualification, and the assembly. Additionally, an overview of the value chain for lithium-ion battery systems and lithium-ion battery components was also offered to the client. In 2015, Europe accounted for around 18% of the Global Lithium-ion Battery market.

AUTOMOTIVE LITHIUM-ION BATTERIES

To gain more insights on the latest trends and challenges

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