BUS 225
RandyF1234
Bus225Project23.pptxAutomotive Industry Analysis
Miranda Free
Bus 225
September 28, 2021
The current state of the U.S. automotive manufacturing industry
summary
The number of registered electric vehicles has soared from 300,000 in 2016 to 1.1 million in2020 (Drew, 2021).
The U.S represents 17% of the world’s total stock of 1o million electric vehicles.
From the graph, it can be established that Europe is leading electric vehicle charge, with the current market of electric vehicles 10% surpassing china with 5.7% while U.S is at 2%.
The data represents the growth of electric vehicles in the United States
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The trend toward different types of motors for the vehicles being made and sold, such as electric and hybrid
4
Summary
2019 BEV accounted for 74% of the global electric vehicle sales.
BEV market is also advanced in China as compared to other regions.
BEV is the dominant electric vehicle technology in the United States and Europe.
The demand of light duty vehicles could grow due to the lower volume of air pollutants they emit.
The data shows that there was an increase in the number of sales in 2019 by 15% when compared to 2018.
This was driven by the growth of 93% of BEVs in Europe, China with 17%, and other regions with 22% (Bryan, Jamie & Genevieve, 2020).
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Trends in customer demands such as vehicle color, extra features, and styles
Summary
The multitaskers embraced pay per use model and they lead with 45%, while for one payment and subscription are 29% and 26% respectively.
In the cautious group, 42% embraced pay per use, 27% subscriptions while 31% was one payment (Andres, Neha, Gunnar, 2020).
The enthusiasts had a 37% pay per use, 26% subscription, and 36% one payment.
The consumers from all the groups shows a little reluctance to commit to a one-time payment and pay-per use is the comfortable choice for the consumers.
Consumers are grouped into multitaskers, cautious, and enthusiasts.
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Trends in the body types of vehicles sold (SUVs, trucks, sedans)
Summary
The huge array of models on offer counted for 51% of total sales in 2008. With 6.68millions of units sold, the total went up by 3.41 million (Jato. 2018).
In 2009, the units sold were 10.4 million given consumers were looking for affordable cars.
This explains why the sales were maintained at 51% during the worst economic time in US history.
Hence, acceleration is towards the regulation, offer and consumer taste determining the sales.
The industry has been showing signs of recovery since then, and the slow growth was as a result of lower fleet purchases, with the lowest being in 2011 with only 11%.
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Trends in the new industry
Summary
The data represents different components sold by the automotive aftermarket industry and the expected sales to 2025 in USD billion.
The industry is segmented in tire, battery, brake parts, body parts, turbochargers, exhaust components, wheels, and lighting and electronic components (Grand View Research, 2019).
The tire segment is likely going to dominate the market by 2025.
Trends in customer demands
Summary
When compared to the same week in 2019, it shows a 1% decrease from the 1st week of March 2019.
The increase in sessions and sales from April to May averaged 61%.
From April 26th to May 2nd increased by 61%.
The overall aftermarket sales in eCommerce increased by 56%.
The data shows online increased in May from 17th to23rd by 56%.
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Summary
The visualization has helped to bring out the insight of how both the industry looks like.
The two industries could play a key role in economic growth as they are closely interrelated.
What the data of the new industry is not telling us is the products for replacement being sold belongs to which group of the vehicles or customers.
Part 2: Analyze three decision-making models and select the one model
Rational decision-making leverages objective data, logic, and analysis rather than subjectivity and intuition to solve a problem and achieve the desired goals.
Intuitive decision-making is used to solve problems that are known because they are believed to be logical.
The recognition-primed model is the approach used in situations that requires a quick decision, incomplete information, and poorly defined goals.
Explain your choice of decision-making model
I would use the rational-making model as it outlines the systematic approaches on how to arrive at a solution. The auto industry is very big and therefore it requires factual figures but not intuition.
The problem has to be verified and defined, researching on possible solutions, setting standards for the potential solutions, fleshing the possible solutions, choosing the best solution, tracking and analyzing the result of the test, and finally implementing the solution (Clifford, 2018).
References
Andres, L, Neha, V, Gunnar, E. (2020). 2020 consumer trends in the automotive industry: Is this the end of the consumer car?. Retrieved from https://www.ericsson.com/en/blog/2020/12/consumer-trends-automotive-industry-2020
Bryan, W, Jamie, H, & Genevieve, A. (2020). Electric Vehicles setting a course for 2030. Retrieved from https://www2.deloitte.com/us/en/insights/focus/future-of-mobility/electric-vehicle-trends-2030.html
Clifford, C, (2018). Rational Decision Making: The 7-Step Process for Making Logical Decisions. Retrieved from https://blog.hubspot.com/marketing/rational-decision-making
References
Drew, D. (2021). Today’s electric vehicle market: Slow growth in the U.S., faster in China, Europe. Retrieved from https://www.pewresearch.org/fact-tank/2021/06/07/todays-electric-vehicle-market-slow-growth-in-u-s-faster-in-china-europe/
Grand View Research, (2019). U.S. Automotive Aftermarket Size, Share & Trends Analysis Report By Replacement Part, By Distribution Channel (Retailers, Wholesalers), By Service Channel, By Certification, And Segments Forecasts, 2019 – 2025. Retrieved from https://www.grandviewresearch.com/industry-analysis/us-automotive-aftermarket
Jato. (2018). More SUVs, more trucks, and less cars: the shift continues in the USA. Retrieved from https://www.jato.com/more-suvs-more-trucks-and-less-cars-the-shift-continues-in-the-usa/
