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Automotive

Industry | What AdvisingAsia can do for you | Solutions at Glance | Business cases

Industry

Automotive - Industry

ADVISINGASIA advises both car manufacturers and automotive suppliers worldwide.

With our well-rounded network, deep knowledge in the field, and automotive management expertise we help our Clients to establish their production sites in the ASEAN area or to develop their sales and service network in the same region.

Automotive is facing some of strongest challenges of its history. From the ground level, three powerful forces are roiling the auto industry: shifts in consumer demand, expanded regulatory requirements for safety and fuel economy, and the increased availability of

data and information.Consumers appear to lose passion with dream sport cars and are likely to buy cars as they were commodities. Accordingly, this change in consumer demand is affecting how much people are willing to pay for automobiles.

Consider that largest OEMs (original equipment manufacturers) spent over €100bn for product development in 2014 only (more than €2bn/week) in product development and tooling costs, and poised to invest at similar rates in the futures. However, historical returns have been broadly below cost of capital.

It has then become essential for automobile manufacturers to reduce their capital expenditures.

Automotive-Can do

What ADVISINGASIA can do for you

ADVISINGASIA supports carmakers and suppliers to develop their brand management, increase their potential business with an effective market penetration, and improve their products and operations.

Thailand, Viet Nam, Malaysia and Indonesia have all have some unique characteristics to become the manufacturing hub for carmakers and automotive suppliers worldwide. Also, as their markets are growing fast and getting increasingly more sophisticated, there are untapped spaces for European manufacturers to sell value-added components, spare parts, and automotive-related solutions to local firms and OEMs.

Considering Thailand only, with 2.46 million vehicles manufactured in 2013, the Kingdom was ranked 9th amongst automotive manufacturing countries in the world. In 2014, Thailand’s automotive industry was the

largest export sector, with an export value of US$30 billion according to the Thailand Ministry of Commerce. Thai automotive benefits from a strategic location at the center of Southeast Asia, excellent infrastructure, an “industrial habitat”, and strong government support.

Within this unique environment, ADVISINGASIA offers two solutions:

Make our Client enter in new markets, hungry for more powerful, technologic and «status symbol» cars – think about the fact that Indonesia is likely to become one of fast-growing mass markets for the automotive industry.
Establish a new manufacturing firm in fast developing countries, where the labour costs is lower, but, as in the case of Thailand, labourers are skilled, experienced, and trained.