IAB Report – Product differentiation crucial for long-term growth: PwC report
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In order to achieve long-term growth, the Indian auto industry would do well to revamp manufacturing models and focus more on product differentiation, says a report from consulting firm PwC.
The report, titled Autofacts’ latest publication titled, ‘How to be No. 1: Facing future challenges in the automotive industry,’ says that for the next 5 years, acquiring, connecting and engaging with customers would be the key. Apart from having differentiated products, the key is also to look at how services are rendered and how the brand is defined at the marketplace, says the report.
The report mentions that in terms of the vehicle service business, it would move from the present solid revenue stream to a brand building factor. It is also vital for local manufacturers to address capacity issues when faced with a slowdown, the report adds. The way to do this, says the PwC report, is to consistently review their Demand Driven Forecasts to better analyse and estimate their future demand.
Sustainability issues would also have to be faced, by the manufacturer along with their suppliers, by looking beyond the usual social and environmental considerations, the report says.
The same report also talks about a few global trends. Demographic changes across the world are also affecting where the demands are coming from and consumer expectations are changing rapidly, it concludes.