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Home » What It Takes to Be New Market Leader in Commercial Vehicle Industry

What It Takes to Be New Market Leader in Commercial Vehicle Industry

June 1, 2012
Ernst & Young

The report, Mega trends shaping the global commercial vehicle industry, 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

"The commercial vehicle industry has bounced back strongly from the financial crisis with global sales expected to exceed three million units by 2016," says Jeff Henning, Global Automotive Markets Leader, Ernst + Young. "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."

Source: Ernst + Young

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KEYWORDS Automotive Business Strategy Alignment commercial vehicle supply chain consumer packaged goods Global Supply Chain Management Supply Chain Analysis & Consulting “Mega trends shaping the global commercial vehicle industry” report
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