Consumer demand in the global automotive sector is likely to further increase in the coming years. There are five international mega trends that would have large scale impacts on the supply of resources and products and demand for finished goods in this industry. These include the technological breakthroughs and innovations in designing, accelerating levels of organisation in both developed and developing economies, noticeable shifts in economic power and the sustainability needs caused by resource scarcity and climate change. In the coming years, the global automotive sector will experience impactful shifts in the demand and supply trends because of which the companies operating in this segment will be in need to achieve a fine balance between the existent traditional technology and product driven supply structures to the more potentially connected, service driven and consumer life cycle oriented systems of supplying the products. From the ground level of the segment, four key forces can be identified which are dominating the automotive industry and its various aspects like demand, supply, management, labour supply and competition.
These include the major shifts in the demands of the existing and potential customer groups, the increasing concerns towards the impacts of the business activities on the climate and the ecosystems, the increased availability of information and data and the expanding regulatory requirements set for the fuel economy and safety of all user groups1.There are major transformations in the consumer demands that are likely to affect the auto manufacturing segment in both positive and negative terms over the next ten years.
The consumers of the automotive industry appear to be re-evaluating their choice of automobile brands and are viewing the cars from the perspective of usability, convenience and product offerings rather than from the perspectives of the brand value associated with them2.
This is likely to impact the pricing decisions of the OEMs functioning in the automotive segment because these kinds of changes in the consumer demands may not affect the sales volumes but they are expected to significantly affect the amount of money that the customers are willing to pay for the specific products. Secondly, the expanding regulatory environments and requirements including the necessity of all automotive manufacturers to comply with the tighter levels of
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