Eurogroup Consulting responds both to the structural challenges of the automotive sector and to its ongoing revolutions, whether they are technological or methodological.
The automobile is engaged in a multifaceted revolution that the sector must address simultaneously.
The revolution in uses
Consumers are increasingly eager for connectivity. As a result, they are demanding new models of use, ownership and financing. For example, customer journeys and experiences, C2C car rental, car sharing, or car leasing.
The technology revolution
Lately, we are witnessing an unparalleled acceleration of the digital shift. This digitization primarily concerns vehicles, for example autonomous vehicles or taxi robots. It also invests in production chains (connection and robotization, including collaborative in factories 4.0, automated supply chain), but also uses (Mobility as a Service (MaaS), connected services, In-Car Entertainment (ICE)). The relationship, the path as well as the customer sales and after-sales experiences are also concerned.
A new competitive framework
By redesigning the historical market maps, the entrant competitors are active in the following areas:
- manufacturing: Tesla, manufacturers in emerging countries;
- autonomous vehicles and connected services: Google, Baidu;
- distribution: new distribution models and formats, e-commerce;
- after-sales services from home: startups, insurance platforms;
- spare parts: Amazon, Oscaro.com, OTOP.
The green transformation
Major R&D efforts are required to provide solutions to new customer expectations and increasingly stringent anti-pollution standards. Among those, electric mobility and sustainable energy sources like hydrogen, LPG, or CNG are considers by the automotive main actors.
Operational excellence and industrial performance
In addition, operational excellence and industrial performance initiatives are strategic key success factors. In fact, the automotive sector is subject to strong cost pressures as it is highly competitive and historically low margin.
The global automotive market
Finally, although the global market is growing, it hides very large disparities between Western markets and emerging countries. Western markets are generally saturated. On the other hand, emerging countries (South East Asia, India, China, Russia, Latin America, Africa), benefit from strong growth pockets. They represent real development opportunities for Western carmakers and equipment manufacturers, but also a major challenge linked to a thorough understanding of local customer needs.
Ultimately, this international coverage requires the development and implementation of relevant partnership strategies adapted to local regulatory requirements. They are often essential to address these emerging markets. It is also necessary to reinvent distribution models in order to avoid reproducing historical models.
To carry out the transformations operationally:
- working methodologies
- industrial footprint & networks
Build innovation systems and bond with the startups ecosystem.
Lead change through agile methods or managerial innovation.
Develop excellence and operational performance, based on our deep understanding and knowledge of supply chain optimization techniques and lean management.
Help firms to implement their digital transformations on a strategic, organizational, technological and IT level (data strategy, robotization, artificial intelligence, …).
Invent and deploy new distribution models (Sales & After-Sales) and know how to support transitions with the entire ecosystem (historical partners and new players).
Rethink customer journeys in order to integrate ever-increasing digitization and propose customer experiences that embrace the brand universe, differentiates but also leaves a true and seamless feeling.
Support employees in their personal development and the integration of necessary skills for business development.