Automotive perspective 2015

The main challenge is that the global

automotive market is uneven

North
America is

enjoying robust
forecasts of 16
million cars, up
from 13 million
in 2008

Sales have
plunged in

South
America

down by about
15 percent in
August 2014

Europe is
weaker as the
region is
emerging from a
six-year slump
Though the UK
bucks this trend
here car
manufacturing
volumes are on
course to break
all-time records
by 20171

Sales have
plunged in
Russia
down by 25
percent in
August 2014

Meanwhile, the
Indian markets
performance has
been inconsistent

And growth in
China the
worlds largest
vehicle market
has slowed,
even though
investments by
most original
equipment
manufacturers
(OEMs), which
are betting big
on future
demand,
continue to
ramp up

Trends affecting the automotive industry

Increased electronics and software content
Cost of electronics
and software is

<20%

Electronics systems
contribute

of the cost
10 years ago

>90%

of innovations
and new features

Timeframe for new vehicle launches is 34 years,

the cycle for new vehicle software is measured in months

Increasing regulatory requirements

U.S. CAFE
standards
come into
effect
in 2016

New
regulations
to ensure
vehicles must
now average
34.1 miles per gallon

Next generation platforms and

platform modularisation

while

decreasing
vehicle
architecture

meaning common components can be

produced in greater numbers, more cheaply

of suppl
n
o
ie
ti

rs

increasing
model
choice

Consolid
a

OEMs are

meaning there
are smaller
numbers of larger
global players

Changing face of retail

Greater numbers
of customers

utilising
online

Customers expect a
seamless service
across purchasing
decisions, financing,
and insurance

According to the Society of Motor Manufacturers and Traders

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