Volatility with original equipment manufacturers is also a broader concern for the automotive industry in the coming years, said Matthias von Alten, Transportation & Mobility Strategy Lead at Publicis Sapient based in Munich.
With consumers’ new and evolving mobility approaches, assessing the health of original equipment manufacturers solely by the number of vehicles sold is antiquated.
“Above all, the profitability of the original equipment manufacturers suffered greatly in 2019,” said von Alten. “This development has various reasons such as the general reluctance to buy, trade disputes and high investments.”
The industry faces a stagnating future when growth might be possible in new markets but investors should expect strong fluctuations, said von Alten. “Many original equipment manufacturers are already undergoing transformation, which should also be taken into account in the control mechanisms. In a stagnating market situation, the focus on market shares should be less important. Rather, profitability, a strong brand and high customer satisfaction are of importance in order to survive in the future.”