Industry Insights
Automobile Industry
Nature of automobile industry Global automobile industry is going to explode with technology updates & changes
Automobile industry is changing drastically with latest technology updates. Technology importing and exporting is big trend in automobile industry. Competitive pricing is the major part of automobile industry which drives pricing of automobiles. R & D is key to success
Influencing factors of automobile industry Countries development levels will directly influences market share.
Technology, trade and traffic polices are major influencing factors .
Individual income levels will influence purchasing power of individuals. Political environment of the individual country. Regulatory bodies and laws related to productions, development and marketing in automobile industry. Trade and tariff policies of individual country. Changes in technological environment especially in product design and development. Changing life style of individuals and interest groups. Competition from local players at country level .
SWOT analysis of automobile industry Strengths
Brand value and life cycle of automobiles. More consumer choices at affordable prices. Advanced R & D in product development and technology updates. Eco Friendly & Fuel efficiency technology Opportunities
Scarcity of fuels – which gives a chance to fuel efficiency cars. Open markets in developing countries. Global view on Eco Friendly and Hybrid Cars Technological needs of individual counties. Interest groups across world. Lower income level groups across world.
Weaknesses
High production cost. Low productivity. Less serving stations for services. Huge logistic management. Huge inventor cost
Threats
National and international economical conditions. Tax and tariffs while importing & exporting automobiles. Competitors in global & local markets. Increase of raw material and labor cost Scarcity of Fuels.
Global insights of automobile industry Automobile industry is going to be doubles it market share by 2018 in developing countries.
China and the US are largest automobile markets worldwide. Toyota, Volkswagen and General Motors are the top listed automobile marketers globally. Bosch, Continental, Denso and Bridgestone are the top automobile suppliers. Automobile industry is going to be double by 2018 in developing countries like “India”. Global sales of passenger cars going to hit 80 million vehicles in 2014. 72.23 million cars are sold till Feb 2014 from 1999.
Forecast of automobile industry Global automobile selling’s will be increased by 3.5% to 5% by end of financial year 2014.
Luxury, electronic & hybrid cars are being new bigger markets in upcoming years.
Shipment of automobiles going to explode at an annual rate of 10% and reaches 40 millions units by end of 2018 Automatic transmission car production is about 28.46 in 2014 and 28.65 by 2015 Basic car will be huge market by 2020 and having share of 70% of market Hybrid cars will be next biggest market by 2020, with 20% of total market share. Electronic cars will have 8% of total market share. Luxury car segment will hold 2% of market share by end of 2020.
Key notes in automobiles R&D playing key role in technology updates, especially in designing and developing of energy efficiency vehicles.
BIS Supports R&D for Eco Friendly automobiles, which is going to be trending market segment.
Global R & D in automobile industry investing 5% to 8% to total market spent. The Department for Business, Innovation & Skills (BIS) Supports organizations for developing eco friendly automobiles . Developing countries are next big markets for automobile industry. Basic model cars are the bigger market in near future, Global harmonization and economies of scale are also key source for growth of automobile industry.
Technology trends in automobile
Fuel Efficiency , Eco Friendly and Digital technologies are upcoming major tech trends in Automobiles
New global regulations are supporting high-end safety and eco friendly automobiles rather than regular automobiles Industries implementing Fuel Efficiency to their automobiles, to capture upcoming markets of world Hybrid vehicles are current trends with digital technology in every technical aspects. Diesel powered vehicles are most selling and now it is moving to two wheel segments. Electric vehicles will be playing major role. Digital technologies are primary source of success in automobile industry.
Digital Marketing Era in Automobile Industry
Almost 60% of people making decision through digital channels in Automobiles industry
ď‚– Automobile industry adopted online marketing and influencing prospective customers to increase sales. ď‚– Online marketing is acting as primary source of sale and in building brand. ď‚– Approximately 60% of sales coming from digital channels.
SWOT analysis of online marketing for automobile Industry Strengths
Brand building through social channels. Building direct relations with prospective users through CRM. Directly communication about vehicles features through videos and other channels. Affordability of marketing campaigns Instant reach about new vehicles. Quick support and services Opportunities
• User behavior about vehicles through search Big trends in social media and smart phone applications. Open global markets for marketing and sales campaigns.
Weaknesses
No direct sales through online. Need another department to follow up leads comes from online channels. Need to depends upon review from influencers.
Threats
Negative voices in social channels. Early players who already adopted digital channels. Data hacking .
Digital marketing spends in automobile
Online presence directly influencing number of sales through digital channels.
60% to 70% of people utilizing online for vehicle info. Globally 30% to 40% of total marketing spend in automobiles is through online. Globally automobile advertising spends growing at 14% annually. Auto manufacturers & dealers suppose to spend $32.8 billion on online advertising in 2014.
Digital marketing trends in automobile Digital marketing channels are being used based on demographics and interest groups. Paid search ads are being primary source to reach prospective user as per their interests.
Data and insights are being source Mobile advertising is growing to target individuals. of strategy Social channels, especially Facebook and Youtube are building in primary source of branding. automobile Review, user experience are influencing buying behavior and improving online engagement about brand.
Big data is for better segmentation of markets and to target them individually.
Influencing factors of online marketing Big change in users behavior in checking information about vehicles, especially in online.
Online presence directly influencing number of sales through digital channels.
Technology adaptation by individuals. Mobiles, tabs are being source of information’s. Smart apps, reviews, ratings available in online directly influencing online marketing spends. Branding value of vehicle over social channels. Loyalty and advocacy: Good vs. bad conversation affect brand preferences and purchasing experience.
Join Hands with Digitant.co
Contact us To know more, send details to info@digitant.co
ď‚– Subscribe for digital marketing audit service to increase transparency and best practices of your digital marketing ď‚– Digitant will help you to identify the working model for your digital marketing practice