Automotive business development consultancy
The automotive industry is facing a completely new Era, switching from internal combustion engines used for over a century to electric-powered drive trains, to overcome the global requirements of reducing our carbon footprint, to save our world for future generations. The sustainability focus of the current change also requires the reorganization of the global vehicle distribution which we all know is outdated for several decades.
These challenges put enormous pressure on automakers to make this change smooth, keeping their market positions while constantly improving the customer experience. They are investing in partnerships massively to make sure the local supply chains and the charging infrastructure are developing to an extent that a customer would not realize any difference between the comfort of buying/using an ICE-powered car compared to a BEV.
Car dealers are facing the prognosis of online sales becoming a trend for buying new cars during the next decade, meaning that their current portfolio of services will no longer be required as it is set up right now. They will probably become more like a delivery point and service point for the car owners, so they need to consider this in their strategy. Used cars will still be an interesting trading option for them, but that also requires a different business model than what they are used to. Switching brands where the new car supply is in better shape or buying cars from different sources can still be an option, but it makes long-term planning almost impossible.
The vehicle supply turned upside down during the pandemic with material shortages and production standstill, creating a global shortage of vehicles and sometimes unacceptably long delivery times. Customers are buying the cars they can get, closest to their expectations, but the luxury of choosing the car brand and type they desired is fading away. The value of used cars is increasing, and certain types of cars are disappearing from the second-hand car market.
Magyar Business Consulting has relevant up-to-date information from all angles of the automotive sector seasoned with a wide network, to be able to advise the SME sector, on how to react to these changes. Whether it is looking for other car supplies or switching business models, we are happy to assess your situation to give you advice on how to stay profitable in the automotive sector during the next decades.
We are here to help you find the right solutions for your business!