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

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

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

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

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How is the automotive industry evolving?

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

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

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

Complexity cost pressure

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

Digital demands

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

Changing industry landscape

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

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

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Creating a Successful Customer Buying Journey in the Automotive Industry

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

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

automotive industryEnrich customer profiles with data

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

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

Examine audience segmentation

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

Adopt a multicultural strategy

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

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


4 Major Roadblocks to Success in the Automotive Industry

The automotive industry is one of the key adopters of advanced technologies, resulting in rapid innovations and disruptions in this sector.  , the future looks bright for automobile companies. Especially with the recent technological advancements, the industry is grooming itself to take customer experience to the next level. But on the flip side, the journey to success will not be a bed of roses for companies in the automotive industry. The consumers are changing and evolving from an ownership-centric mindset to service-centric demand. This demands businesses to keep track of the changing demands of their market continually. Keeping tabs on the consumer’s demands coupled with the dynamic market trends could prove to be a daunting task for automotive companies. But this is only one of the challenges that companies in this sector need to be aware of. Here’s a list of the top automotive industry challenges to watch out for in 2018 :Request Free Proposal

Rise in globalization

The increasing rate of globalization is undoubtedly good news for the growth of the automotive industry. However, expanding operations at a global level could be a challenging task for companies. Drastic shifts in global sources of supply, combined with strategies to take advantage of emerging markets, gives rise to new challenges related to global trade and international finished vehicle logistics fulfillment. Which means the players in this sector have to ensure that their knowledge about foreign markets, supply chain, and other operational strategies have to be impeccable in order to survive in a global scenario.

Innovation is the need of the hour

The automotive industry is one of the biggest sectors in the world, which means there is no shortage of competition in this industry. Also, the growing inclination of customers towards the latest technologies and customization is forcing players in the industry to update themselves and efficiently cater to customers’ needs. In this situation, it becomes highly challenging for automakers to find new ways to get closer to meeting customer demands while simultaneously maintaining their profitability to gain an edge over other players in the industry.

Increasing regulations

One the most pressing hurdle for the automotive industry is the need to meet rising restrictive emissions and fuel-consumption regulations in the Western world. It’s easy enough for automakers to build a single car model that meets these requirements. However, in the U.S. the problem is that an automaker’s entire model lineup, including SUVs and light trucks, have to maintain an average level of higher mpg and lower emissions. Automobile companies are expected to improve fuel efficiency by at least 20% and as much as 60% by 2025, depending on the company and regulations.

Maintaining costs

Players in the automotive industry have recognized that most of their customers are attracted to the rapidly progressive intelligence and connectivity in vehicles. But designing and producing these smart cars and trucks is no easy task, and it poses real risks. Additionally, the cost of incorporating and managing new technologies and data is skyrocketing. This poses a major challenge for automotive companies when it comes to integrating new technologies cost-effectively.

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Trends That Will Drive Change in the Automotive Industry in 2018

The past few years have witnessed the automotive industry taking huge leaps in terms of technological innovations. Automobile companies are investing heavily in the latest technologies that can be incorporated into their machines. In 2017, several top players in the sector had awed us with the pioneering pilot study on autonomous vehicles and new models of electric cars. The current state of innovations in the automotive industry is something that was far from imagination, probably a decade or two earlier. Though we will not be seeing flying cars like the ones from the popular movie ‘Back to the Future’ anytime soon, there are several exciting trends in the automotive indusContact UStry that are expected to hit the roads this year.

Top Trends in the Automotive Industry 2018

Carpooling and shared cabs are the way forward

Who doesn’t loathe traffic jams? But considering the number of vehicles sold each year in the and the rate at which the vehicles-on-road is increasing, there no better outcome you could expect. Taking this into consideration, market leaders in the automobile industry such as Uber and Lyft have launched shared cabs and carpooling services. These facilities not only help reduce the stress while commuting but also reduce the level of pollution. 

The new entrant: Blockchain

Of late, the use of blockchain for pathbreaking innovations in several industries has been making the news. This technology is slowly catching the attention of automobile companies. But what is the application of bRequest Proposallockchain in the automotive industry? Dealing with counterfeit parts is one of the significant challenges faced by the companies in the automobile industry. Blockchain capabilities have emerged as the best possible solution to rectify this problem. With the help of blockchain technology, companies can simplify the methods to identify and remove the counterfeit parts. Furthermore, this brings transparency into the system and improves the overall pricing strategies.

An eye for multi-terrain vehicles

The adrenaline rush especially among millennials and baby boomers to be adventurous is popularizing multi-terrain vehicles in the automotive industry. Multi-terrain vehicles provide the comfort and ease of operation in difficult terrains. Additionally, their heated leather seats, frugal fuel consumption, five-door utility, and high-end audio systems are all incredibly appealing to the young customer segment.

 Crossover vehicles are trending

Crossover vehicles have proved to be a huge success among the present generation who expect the comfort of an SUV with fuel and operational cost-effectiveness. Get More InfoCrossover vehicles are a mix of regular Sedans and SUVs. They have proved to be one of the most convenient ways to commute without compromising on comfort and style. In 2018, we can expect more players in the automotive industry to invest heavily in crossover vehicles.

Automotive manufacturing is going 3D

Numerous safety benefits and cost-effective nature are grabbing more eyeballs for 3D printed cars. At present, cars are designed to withstand up to five crashes and last an average of seven to ten years. But 3D printing enables automobile companies to build a car on a solid chassis with an outer body designed for a single crash. Then cost-effectively replace the damaged part while leaving the basic vehicle structure in place. This technology could completely disrupt our concept of accident repair of vehicles.


To know more about the latest trends in the automotive industryAsk an analyst

To know about the challenges for the automotive industry in 2018:

4 Major Roadblocks to Success in the Automotive Industry


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

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

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

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

Additional benefits of the market assessment solution

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



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Answers to the questions

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

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

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

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

Additional benefits of the competitive intelligence solution 

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


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

Connected Car Technology

Infiniti’s Market Assessment Service Helps a Prominent Automotive Manufacturing Client Gain Better Visibility into Effective Market Positioning Strategies

The number of cars purchased by the millennial segment saw a radical decline of 30% and is expected to witness a further decline in the coming years.

In recent years, the global automotive industry has started witnessing high investments in research and development to comply with the stringent regulatory measures and increase profit margins. The growth in the automotive space is marked by the rise of shared economy, partnerships with disruptive tech companies, and the growing demands among the consumers. Despite the economic crisis, prominent automotive manufacturing companies are planning to enhance their offerings to stay competitive and offer low-cost models to the customers. After the global economic recovery, leading automotive manufacturers have started investing in technologies, clean energy, and autonomous vehicles to reach out to the target audiences in an agile and seamless manner. Although the automotive industry is witnessing promising growth, several factors may influence the growth of the market. These factors include:

Increasing globalization: With the increasing globalization, leading clients in the automotive manufacturing sector have started facing challenges when it comes to penetrating niche target segments and enhancing business offerings. Moreover, the regulatory trade practices are restricting prominent automotive manufacturing companies from enhancing their operational efficiency while meeting the quality concerns.

Innovations: The competition in the automotive space is growing manifold, and major OEMs and dealers need to rely on innovations to meet the growing demands for customization. Moreover, automotive manufacturing companies need to find innovative ways to reach out to the customers, while meeting the quality standards.

Changing consumer preferences: The automotive industry is nearing its saturation due to the presence of a considerable number of competitors, globally. Due to the presence of numerous brands, the preferences of the consumers have started changing, and consumers are no more concerned about brand loyalty.

To address such challenges and gain strategic insights into the market landscape, organizations are facing the need for effective market assessment solutions. Market assessment provides an accurate understanding of the market dynamics and helps companies frame value-creating strategies. Moreover, such solutions also provide greater insights into the automotive manufacturing space in terms of the demographic and economic overview, location mapping, competitor analysis, and key demand drivers.IR_Brochure

The Business Challenge

  • The client: A leading automotive manufacturing client
  • Area of engagement: Market assessment

The client, a renowned automotive manufacturer, wanted to gain insights into the market landscape and identify the regional opportunities and challenges. The client wanted to seek ways to identify the most profitable segments and refine their relationship with the consumer base. With the help of Infiniti’s market assessment solution, the client also wanted to gain adequate insights into the customer awareness, the usage, and perceptions of the brand, and major competitors in the automotive manufacturing space. The primary concern of the client was to understand the purchasing habits of the customers and adequately allocate their marketing resources to meet the business requirements.

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Our Journey

To assess the current market scenario, the market assessment experts at Infiniti carried out extensive research, comprising interviews and discussions with leading stakeholders in the automotive manufacturing space. Furthermore, to identify potential bottlenecks and improve the market opportunity, the experts also compiled information from a wide array of secondary sources such as trade shows, government bodies, industry forums, and company presentations in the automotive manufacturing space.

The Solution Benefits and the Business Impact

The market assessment solution offered by Infiniti helped the automotive manufacturing client gain a detailed assessment of the business characteristics in terms of the organic and inorganic growth. The solution also offered adequate insights into the current market scenario and helped the client develop customized value propositions. The engagement also helped the client position their products based on the customer’s preferences and mitigate potential bottlenecks related to market entry.

The Future:

The future of the automotive manufacturing is likely to be marked by innovations and engineering developments in terms of IoT, connected cars, and haptic sensors. OEMs and suppliers should invest highly in R&D to develop new technologies and technical talent.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the automotive manufacturing space.


Metal Fabrication

Infiniti’s Supplier Identification and Profiling Study Helped an Automotive Industry Client Reduce Bottlenecks in the Supply Chain Process

In the automotive industry, identifying and choosing the right supplier is like selecting a novel from a huge pile of books. The choice of the businesses will revolve around a wide array of factors such as the quality of the service rendered, the reliability of the service, and finally the price. With the rising adoption of cars among millennials, the automotive industry players are increasing their production capacity to meet the demand of markets such as India and China. In the manufacturing industry, supplier selection becomes a major concern for most stakeholders. To profile the relevant suppliers and enter niche market segments, renowned manufacturers in the automotive industry are facing the need for effective solutions that aid in the supplier selection process. In the automotive industry, supplier selection helps leading businesses identify, evaluate, and contact potential suppliers and adequately allocate financial resources to enhance the business performance.

In this intensively competitive global economy, it becomes critical for companies to develop a good relationship with existing customers and discover new suppliers. To identify and profile the right suppliers, leading businesses in the automotive industry space are approaching renowned solution providers like Infiniti. Infiniti’s supplier selection process helps companies streamline suppliers and significantly reduce the production costs to improve production capacity.

The Business Challenge

A leading automotive industry client wanted to identify new suppliers to gain a cost advantage over existing suppliers. The client wanted to reduce their production costs and offer top-notch quality products to the customers to stay relevant in the automotive industry. Moreover, the automotive manufacturer wanted to seek ways to deal with competition, reduce disruption related to the supply, and meet specific business objectives. The primary concern of the client was to verify the suppliers’ ability to meet the buyer’s requirements.

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Our Approach

To improve the delivery performance, Infiniti’s supplier selection experts carried out both qualitative and quantitative research with leading stakeholders in the automotive industry. The stakeholders include members of research and development, purchasing, marketing, and quality assurance teams. Additionally, to assess the supplier’s financial status, the supplier selection experts at Infiniti further compiled information across a wide array of secondary sources such as paid industry databases, company presentations, and industry forums.

The Solution Offered and its Business Impact

With the help of Infiniti’s supplier selection and profiling engagement, the automotive industry client was able to spur their production capacities and improve lead times. As the automotive company was concerned with maintaining high standards, the supplier selection process helped the client ensure that the quality of the standards is met and the supplier is competent enough to meet all expectations.

Additional Benefits:

  • Improved the relationship with the current suppliers and selected new prospective suppliers
  • Efficiently selected the right suppliers and built a strong brand reputation
  • Measured supplier performance and delivered top-quality products to the customers

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


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