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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.

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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

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.

Car accessories market

Infiniti’s Market Opportunity Analysis Helped an Automotive Company to Devise an Efficient Market Expansion Plan and Realize Savings of Over $3.6 Million

US Automotive Industry Overview

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 US.

US automotive industry challenge #2: Divergent trends

The US automotive trends, especially digital and technological advancements have put automakers in a state of disruptive transformation. Also, US consumers’ demands 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 understand the evolving automotive 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, 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: Adapting to 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 monitor 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 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 a trend analysis. By leveraging Infiniti’s expertise in offering market trend analysissolution, 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 a customer segmentation analysis. With the millennial group becoming more important for luxury automakers in the US automotive industry, the experts segmented millennial customers into various groups based on their characteristics such as spending patterns and buying behavior. This helped the client 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 million.

Request for more info to know other benefits of leveraging our solutions.

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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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?

At Infiniti, we believe that the needs of each business are different and follow a ‘one size does not fit all approach.’ Request a free brochure to know how we tailor-make our business intelligence solutions to suit the requirements of our clients.

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

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.

Automotive Companies

Automobile Industry Analysis: Infiniti’s Industry Analysis Solution Helped an Automaker Evaluate their Financial Health and Establish Themselves in the US Automobile Market

Automobile Industry Analysis

New technologies, innovative designs, manufacturing processes, and changing consumer demands are making automobile industry far more complex than they were a decade ago. Automobile companies are also under pressure to keep up with market demands and innovations. This necessitates companies to conduct automobile industry analysis to keep tabs on competitors, market innovations, opportunities, and risks. Infiniti Research has helped many automakers to understand its market position relative to its competitors and focus their resources on developing unique capabilities that could lead to a competitive advantage.

US Automobile Industry Analysis: Challenges Facing the US Automobile Industry

US AUTOMOTIVE INDUSTRY CHALLENGES

Want to understand your market position compared to other major automakers in the industry? Our automobile industry analysis solutions can help. Request a FREE brochure to know more about our services for the automotive industry and learn how our automobile industry analysis solutions can help your business understand the key opportunities and challenges in different markets.

Business Challenge

The client is an automobile company based out of the Midwestern United States. The client was new to the US automobile market. To identify and quantify the opportunities in the US automobile industry, the client approached Infiniti Research to leverage their expertise in offering automobile industry analysis. Lack of adequate knowledge about the market and competitors posed major challenges for the client as they were unable to determine a clear business strategy and justify their actions. Furthermore, the automotive company wanted to identify and understand the risks and opportunities facing their business to develop unique capabilities that could lead to a competitive advantage.

By leveraging Infiniti’s expertise in offering automobile industry analysis, the client also wanted to:

Understand US automobile industry performance – The client wanted to analyze how well the US automobile industry is doing and also understand how the market changes will affect the performance of automobile companies in the region with the help of our automobile industry analysis.

Understand market position – With Infiniti’s automobile industry analysis, the client wanted to gain an in-depth understanding of the industry and competitors. With the insights obtained, the client wanted to understand their position in the US automobile market and differentiate their products and services from other companies operating in the same region.

Identify potential opportunities and threats – The client also wanted to understand the potential threats and opportunities in the US automobile industry to build strategic business plans.

Are you new to an industry? If yes, you will definitely need to leverage an industry analysis to gain detailed insights into competitors and market opportunities. Request a FREE proposal to know how our solutions will help you identify the specific industry’s opportunities and challenges.

Solutions Offered and Value Delivered

The experts at Infiniti Research conducted automotive market research. The factors such as industry performance, major automakers, market opportunities, threats, and competitors market position were taken into consideration. The experts also compared the client’s business performance against various other market players using different metrics.

From the insights obtained from Infiniti’s automobile industry analysis, the client was able to gauge the competition and track their own progress in the US automobile market. The automobile industry analysis further helped the client to understand the performance trends and assess potential market opportunities. By leveraging Infiniti’s expertise in offering automobile industry analysis, the client was also able to understand their market position relative to other major automakers. This helped them make changes in their business plans and identify niche market segment to promote their product offerings. In the course of three years, the client was able to gain a leading edge in the market. Also, with Infiniti’s automobile industry analysis, they were able to meet their revenue expectation and achieve an increase in profit margin by 12%.

CONTACT US to know how our automobile industry analysis will help you gain complete insights into the automobile market and competitors.

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