【正文】 CIM IT Services Market Outlook: Global Automotive Industry Business Intelligence Group August 2020 BUSINESS INTELLIGENCE GROUP Contents Executive Summary Automotive Industry Business Challenges ? Global ? Regional: US, Europe, AsiaPacific, Rest of World Automotive IT Spending Trends ? Global amp。 Regional IT Spend Forecasts ? Automotive Industry IT Trends Automotive IT Services Industry: Competitive Profiles Automotive IT Services Market: BearingPoint Alliances Sources and Contact BUSINESS INTELLIGENCE GROUP Executive Summary Automakers are currently faced with slower sales, over capacity and declines in profitability. Big 3 are losing market share to Japanese automakers. ? Toyota, Honda and Nissan increased their . sales and market share in the first half of 2020, while the Big Three manufacturers (GM, Ford, DaimlerChrysler) saw their sales decline despite spending heavily on incentives. ? Currently the global automotive industry has too much capacity (roughly 30%) and as sales fall, the problem continues. ? Car prices have been falling making already thin margins even more pressured. The global automotive industry is faced with more petition, greater price transparency, rising customer expectations and quality improvements, making the pressure even greater on price and profitability. China presents the best opportunity for automakers due to increased government incentives and cooperation, cheaper labor, and proximity to a large population of potential consumers. ? China continues to make progress towards a market economy which has led to global businesses, like automotive panies, trying to ramp up in order to tap into the country39。s large marketplace of consumers. A year after entry into the WTO, in 2020, China‘s automotive industry produced motor vehicle units (38% growth pared to the year before). IT Issues: Industry in survival mode, pressuring spending。 Opportunities for CRM ? Most manufacturing verticals, including Automotive, have been operating in ―survival mode‖, spending very little on capital and operational expenses。 IT spending has suffered as a North American manufacturing market constitutes approximately 45% of the total world manufacturing IT spend. BUSINESS INTELLIGENCE GROUP Executive Summary ? Currently in the automotive industry there is less significance placed on the role of IT in supporting business strategies, especially in parison to industries like Financial Services or Healthcare payer industries. This is a large determinant of IT budget. ? In order to understand their nearterm sales volume, option mix and price sensitivity, automakers have to start understanding their customers better through the many signals they see from their consumers‘ interactions. Much of this can be acplished through CRM initiatives. ? While dealer incentives have been used by most of the major automakers, especially in the US, panies leveraging their existing CRM might be able to get more for less. The data gathered from incentive programs flowing back to manufacturers and dealers can allow followup campaigns that bridge the gap between sales and marketing. ? ERP vendors are turning their focus to delivering extended applications in areas of SCM, CRM and PLM to pensate for the loss of revenue from largescale projects. Competitors and Alliances ? Deloitte Consulting has a joint initiative with SAP to support the automotive industry in the deployment of the mySAP Automotive solution on a worldwide basis. As part of this initiative, DC and SAP are developing methods for customerspecific analysis on feasibility, costbenefit, and ROI. ? IBM encourages their engineers to rotate in and out of the field, spending time solving reallife problems while not abandoning their inside research. IBM has created an innovation services group within its research unit dedicated to working on automotive customer problems, making them capable of taking their research and apply it to business issues. ? In the European automotive industry, SAP is currently focusing on cross functional processes, packaging their SCM, PLM and CRM all in one, using different modules, approaching it from the perspective of the business processes that cross these areas. Global Automotive Industry: Business Challenges BUSINESS INTELLIGENCE GROUP Global Automotive Industry is on a Gradual Slide The world‘s automotive industry has been on a gradual downward slide over the past year, accelerated to some degree by the likelihood of a major bankruptcy and further restructuring of the industry. ? Inhibitors include weak (regional) consumer confidence, high unemployment and uncertain global equity markets, all of which have led to lower sales. ? In Europe, the first five months of 2020 saw sales drop by 4% while new registrations for May fell the lowest in five years. The US market is forecast to shrink 4% this year. ? Currently the global automotive industry has too much capacity (roughly 30%) and as sales fall, the problem continues. Much of the overcapacity is due to each individual pany expecting to grow faster than its rivals. And while the 90s showed strong returns, many automakers invested in additional capacity, created risky models, built more factories and entered into emerging markets that had more long term promise than short term. ? For many years the largest truck and car makers have continually sustained losses out of their primary businesses of car sales, often making profits through money made from selling spare parts at inflated prices, through financing businesses or through exchange rates. This structure is increasingly exposed in a downturn, especially when incentives like 0% financing have hampered the financing business. ? Car prices have been falling making already thin margins even more pressured. The global automotive industr