The changing face of commercial vehicle industry: report reveals what it takes to be the new market leaders
London, 30 May 2012 – Six mega trends have been identified that will significantly impact the revenues, costs and profitability of the commercial vehicle industry as demand for trucks and buses evolves with globalization, technology development, regulation and emerging market growth. Mega trends shaping the global commercial vehicle industry, a report by Ernst & Young, looks at how stakeholders across the commercial vehicle value chain are likely to be impacted by trends shaping the industry – from the operating environment, preferences relating to fleet operators and competition, to distribution channels and the supply chain.
The six mega trends shaping the light vehicle industry are:
- Truck owners demand technology solutions enabling greater transparency into operations, vehicle and driver management
- Regulations force truck owners to change operating and buying behavior while driving Original Equipment Manufacturers (OEMs) to offer cleaner and safer commercial vehicles
- Stagnation of developed markets and cyclicality of demand driving OEMs to expand geographic footprint and review operational efficiency
- OEMs reinvent product portfolio to increase “glocalization” (creating local products and brands), expand presence across truck segments and offer customized value added services to improve retention and diversify revenue sources
- Tier 1 suppliers increase business resilience by offering innovation and operational flexibility for OEMs while simultaneously expanding aftermarket and fleet offerings
- Globalization and economic uncertainties expose the commercial vehicle industry to supply chain, manpower and economic risks
Commenting on the report, Jeff Henning, Global Automotive Markets Leader, Ernst & Young, says: “The commercial vehicle industry has bounced back strongly from the financial crisis with global sales expected to exceed three million units by 2016. This buoyancy represents a major stage of evolution for the commercial vehicle industry and the auto industry as a whole. Companies across the commercial vehicle value chain need to assess how well they are prepared to respond to the evolving industry trends so they can capitalize on the opportunities that lay ahead. The ability to innovate and be flexible in a constantly changing environment will be crucial for future success.”
How Ernst & Young’s Global Automotive Center can help your business
The global recession reset the automotive industry landscape. As the industry recovers, automotive companies across the value chain must focus on profitable and sustainable growth, financial and operational stability, investments in new technologies and seizing opportunities in high-growth markets. If you lead an automotive business, you need to anticipate trends, identify implications and make informed decisions that support your business goals. Our Global Automotive Center enables our worldwide network of more than 7,000 industry focused assurance, tax, transaction and advisory professionals to share powerful insights and deep sector knowledge with businesses like yours. These insights, combined with our technical experience in every major global automotive market, will help you to accelerate strategies and improve performance. Whichever segment of the automotive industry you are in — from component suppliers to commercial or light vehicle manufacturers or retailers — we can provide the insights you need to realize your potential today and tomorrow.
About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 152,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.
Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com.
This news release has been issued by EYGM Limited, a member of the global Ernst & Young organization that also does not provide any services to clients.