a case study from automotive industry

Customer Logins

Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.

• S&P Dow Jones Indices
• S&P Global Market Intelligence
• S&P Global Mobility
• S&P Global Commodity Insights
• S&P Global Ratings
• S&P Global Sustainable1
• Agencies & Media
• Energy & Infrastructure
• Financial Companies
• Insurance Companies
• Logistic Companies
• National Sales Companies & Dealers
• Tech Companies
• Vehicle Demand
• Vehicle Production
• Sustainable Mobility
• Marketing Activation
• Sales Optimization
• Industry Performance
• automotiveMastermind
• Parts Demand & Fitment
• Owner Notification
• Vehicle Identification
• Research & Analysis
• Electric Vehicle Trends
• The Future of Mobility
• In Person Events
• Webinar Replays
• All Experts
• Automotive Aftermarket (Worldview)
• Automotive Catalyst for Insight
• Automotive MarketInsight
• Automotive Planning Solutions
• Automotive Vehicle Performance and Compliance Monitor (VPaC)
• Automotive Vehicle Technical Intelligence Platform (VTIP)

Tesla Motors: A case study in disruptive innovation

Senior Director, Cost Benchmarking Services, IHS Markit

Tesla Motors broke the mold. Then reinvented it. Not only did Tesla Chief Executive and Chief Product Architect Elon Musk demonstrate that convention could be defied, he did it in an industry with 100-year-old traditions, norms, and processes. Of course, the auto industry has innovated in the past, but Tesla, which was founded in 2003, has pushed the envelope beyond what most automakers thought possible. The company's Silicon Valley-style "techpreneurship" enabled it to move faster, work more efficiently, and create groundbreaking new ideas around sustainable mobility and automotive technology.

After all, this is Musk's modus operandi. In 1998, he disrupted e-commerce by creating a widely deployable and secure payment platform called PayPal. And in 2002, he launched SpaceX, a company that designs, manufactures, and launches rockets and spacecraft. The company's goal is to enable people to live on other planets. Musk, himself, wants to "die on Mars" and wholeheartedly believes it will be possible.

He is also a lightning rod in the debate around mass transit with an idea some critics refer to as vaporware. Dubbed Hyperloop, Musk's idea is to create a high-speed transportation system that is immune to weather, impossible to crash, uses little energy and recaptures most of what it uses, and travels twice the speed of today's commercial aircraft. He believes the concept could move people from Los Angeles to San Francisco in just 35 minutes. Oddly, he has no interest in making the Hyperloop a reality but, rather, is putting his ideas out there for others to take and improve the human experience.

With Tesla, Musk is focused on disrupting mobility. As of mid-June 2014, the company has released all of its patent holdings, claiming that open-source innovation is more powerful than anything one company could do individually. While IP lawyers cringed, Wall Street applauded, sending Tesla's stock price up 14% to $231 a share. This radical approach to innovation runs deep, as evidenced in the technology and design approach of the company's flagship Model S, its $69,900 luxury car.

In August 2014, the IHS Technology Teardown Team purchased a used 2013 Model S and took it apart to see what made it tick. The team dismantled 12 systems and cataloged every part within each system. The teardown included both the electronics systems inside the car's interior and the drivetrain (see sidebar "What's inside the Model S?").

Technical differences

The teardown confirmed that the Tesla Model S is unlike anything else on the road. A massive plot of real estate in the center stack is dedicated to a 17-inch touch screen infotainment system, which became—since its production launch in 2011—an instant industry benchmark for automotive display integration. There is room left for only two physical buttons on the console—one for the hazard lights and one for the glove compartment release (see sidebar below).

The technical specifications are impressive. The 17-inch screen is a Chi Mei Optoelectronics display with 1920 x 1200 WVGA resolution that includes a projected capacitive touch screen—the same technology employed in many smartphones and tablets. The system runs on a Linux-based operating system, offers Garmin navigation with Google Earth overlays, and computes at speeds still besting most other systems available today with its NVIDIA Tegra 3 processor combined with 2 GB of DDR3 SDRAM.

The system includes an embedded 3G modem from Sierra Wireless that runs broadband data off AT&T's network. It can receive software updates over the air and controls all of the functions of infotainment, audio, navigation, Bluetooth phone, HVAC, and even vehicle settings like windows, door locks, sunroof, trunk release, traction control, headlights, steering, and suspension settings.

In addition, a 12.3-inch fully digital instrument cluster sits directly in front of the driver with its own NVIDIA Tegra 2 processor, which it uses to handle the diverse array of graphics, content, and redundant outputs for the driver. About the only "familiar" driver components are the steering wheel, pedals, and transmission shifter—the latter actually borrowed from the Mercedes-Benz parts bin.

Manufacturing differences

The system is clearly in a class of its own. However, with all of these high-end specifications, how can Tesla sell this as a standard feature in every Model S? More disruption.

The company chose to change up the supply chain and borrow from the electronic manufacturing services (EMS) model of production that is standard practice in the consumer electronics industry. In this respect, Tesla is closer to being a technology company than a traditional automobile maker. Much like how Apple designs the iPhone and then employs Foxconn to build it, Tesla contracted with a leading EMS provider to build its center infotainment system, instrument cluster, and several other systems in the Model S. This model required Tesla to internalize much of the hardware and software development, as well as the systems integration work. Given that Tesla has hired its engineers from all over Silicon Valley and beyond, this was not a problem.

The Silicon Valley culture and the EMS approach to manufacturing were a clear advantage for Tesla at one time but no longer make it unique. The EMS model is expanding in the automotive industry, and the likes of Compal, Flextronics, Foxconn, and Jabil are working with brands including Chrysler, Daimler, Ford, General Motors (GM), Jaguar, and Volkswagen.

However, the transition to the EMS model can be problematic. Ford outsourced the entire infotainment architecture for the development and deployment of MyFord Touch in 2011 to an EMS provider. The initial system had technical software problems that required Ford to issue several software upgrades. This cost tens of millions of dollars, contributed to a poor customer experience, and caused perception problems for Ford, from which the company has only recently recovered.

Development differences

In the last decade, virtually every automaker has relocated portions of vehicle and vehicle technology development to new R&D facilities in the San Francisco-to-San Jose tech corridor. In fact, some early innovators predate Tesla: BMW, Daimler, and Volkswagen set up shop in the Valley in the mid-1990s, and Honda opened its first office in 2003, the same year Tesla was founded.

The reasons for doing so now go beyond manufacturing. Automotive OEMs are co-locating with the likes of Apple, Cisco, Facebook, Google, HP, Intel, NVIDIA, and Oracle to help speed the pace of innovation. This involves accelerating the pace of hardware, software, services, and applications development but also rethinking the process of design.

The development speed of a typical mobile device is often six months or less. Compare that with the design-to-production timing for a new vehicle of approximately four years and it's no wonder car-buying consumers have been underwhelmed by standard in-vehicle electronics. Even today, consumers can find navigation and infotainment systems designed in 2008 for sale in model-year (MY) 2014 vehicles. To give an idea of how ancient that is in "tech-years," BlackBerry held more than 50% market share among smartphone users in 2008. Remember BlackBerry?

Tesla has had a competitive advantage over auto industry rivals in design innovation since day one. Located in arguably the center of the world for technological innovation, Tesla was able not only to construct its vision of mobility in Silicon Valley, but also recruit its employees from many of the leading technology companies to design and build the car there as well. All other OEMs grasping for automotive technology leadership had to learn the culture of Silicon Valley, figure out how to adapt to it, and dissolve the century-old "way of doing things." Tesla was born into it.

Service differences

With Tesla's technology come some very important services. Perhaps at the top of the list is the convenience of over-the-air (OTA) software updates for vehicle recalls, which Tesla has made free and standard for Model S owners. This functionality has, in turn, created plenty of positive press for the company.

It all starts with the connection. The 3G connection in the Tesla infotainment system is already providing this solution via relatively old wireless technology. Since the modular and flexible hardware architecture of its infotainment system allows for mid-cycle technology enhancements, IHS expects Tesla will soon debut true 4G LTE connectivity in its vehicles. The added bandwidth will further enhance the OTA update service, as well as the rest of the services the Model S offers.

IHS forecasts a 60% global penetration rate on embedded cellular connections in cars by 2022, with 4G LTE bandwidth comprising roughly 60% of that market. GM and Audi have actually beaten Tesla to market on this specification as both OEMs already have 4G LTE cars on the road now.

One central purpose of this mass-market vehicle broadband adoption is to accommodate FOTA (firmware over the air) and SOTA (software over the air). Tesla has already deployed this function in part because it allows the company to provide vehicle service without needing to charge (or possibly pay) for service bay labor.

Consider Tesla's recall of the Model S for overheating charger plugs in January 2014. The day the recall notice came out, Tesla had all 29,222 Model S vehicles updated wirelessly and running the new safer version of the software. Ironically, around the same time, GM had a similar fire-related safety recall issued that also required a software update. Despite all of its vehicles having standard OnStar telematics, owners were required to take their cars into a dealership for the software update, costing GM a warranty labor expense on all 370,000 recall service appointments.

While far from a sure thing, nanotechnology offers significant business opportunities for companies willing and able to take the long view. One avenue is to identify a sizable opportunity in an existing market where a nanotech product can displace an existing inferior solution, e.g., a coating for an automobile that keeps itself clean, clears mist from side mirrors, or self-repairs scratches in the automotive paint.

Volume aside, Tesla paid much less on a per-vehicle basis than GM, simply by providing a software update procedure that has been on personal computers for more than two decades and mobile phones since before the BlackBerry.

IHS sees the OTA software trend continuing strongly. With vehicles like the new Mercedes-Benz S-Class claimed to have over 65 million lines of code—10 times that of the Boeing 767 Dreamliner—the automotive industry stands at a crossroads. Software recalls are about to become a major problem, one that will be expensive if this type of technology is not broadly deployed.

As of February 2014, over 530 software-related recalls had been reported since 1994 (see figure below). Among these, 75, or 14%, were issued for MY 2007 alone, with over 2.4 million vehicles affected. Numerous questions arise from the variation in volume by model year—not the least of which is, why have recalls for MY 2007 been so numerous? There are likely several reasons for this spike:

MY 2007 had the last large-sales volume before the economic recession plunged US car purchases from approximately 16 million to 10 million in 2010.

Many new electronics systems were added in MY 2007 for infotainment, advanced driver assistance systems, and core auto control systems, which increased the amount of software in the typical car.

MY 2007 involved recalls of 75 vehicles, the most of any model year. Many automotive OEMs had multiple model recalls with software updates. Toyota had especially high recall rates that included software updates.

It is in this context that IHS expects FOTA and SOTA to be enabled in over 22 million vehicles sold worldwide in 2020 alone, growing from approximately 200,000 vehicles in 2015. Major deployment will begin in 2017. In the meantime, Tesla will continue to leverage its first-to-market status with FOTA and SOTA to help lower overall costs to the end user and improve unit margins on each additional Model S sold.

Powertrain differences

The heart of Tesla's Model S is its electric propulsion system, which includes a battery, motor, drive inverter, and gearbox. The battery is a microprocessor-controlled lithium-ion unit available in two sizes; spending more buys more range and more power. The induction motor is a three-phase, four-pole AC unit with copper rotor. The drive inverter has variable-frequency drive and regenerative braking system, while the gearbox is a single-speed fixed gear with a 9.73:1 reduction ratio. The battery of each Model S is charged with a high-current power inlet, and each vehicle comes with a single 10kW charger and mobile connector with adapters for 110-volt and 240-volt outlets as well as a public charging station adapter.

This powertrain package allows Tesla to deliver a longer driving range than any other EV maker—about 200 miles versus just under 100—plus acceleration and driving performance similar to or better than a traditional gasoline-powered vehicle. While several automakers offer EV powertrains—Nissan's Leaf and Chevrolet's Volt, for example—none matches Tesla's commitment to EV development. And as a clean slate company, Tesla has had the advantage of developing an entirely new powertrain and supply chain without the hindrance of existing dealerships, physical plants, or inventory.

Other EV products use lithium-ion batteries, but in lower kWh and using fewer, but larger, battery cells. For example, the Nissan Leaf uses a 24kWh battery, with 192 cells and EPA-estimated range of 84 miles. The Model S' 85kWh battery has more than 7,100 cells, allowing it to move greater weight faster and with longer range.

To address range anxiety, Tesla has made a significant investment developing charging stations in the US (112 to date, according to the Tesla website), Europe (63), and Asia (17). These supercharger stations can swap out the battery in less time than it takes to fill a tank of gas. Owners must come back and swap again for their original battery. Nonetheless, this helps alleviate drivers' worries about becoming stranded on long trips.

Tesla is working to drive battery costs down in anticipation of the launch of its mass-market, $35,000 Model 3 EV sedan, which is slated to debut in 2017. To that end, the company recently announced a new $5 billion "gigafactory" battery plant in Nevada in partnership with Panasonic. It will reportedly handle all elements of battery cell production, from raw material to battery pack, rather than only battery pack assembly. And Tesla intends to sell its OEM batteries for non-automotive applications, which will enable it to increase production volume and reduce unit cost.

What does the future hold?

• Created a fun-to-drive electric roadster. Check.
• Leveraged the lessons to scale-up to a full-luxury sedan. Check.
• Disrupted the luxury car market and, according to IHS Automotive data, attracted "conquest" buyers from the likes of BMW, Mercedes, and Lexus, not to mention Toyota and other volume brands. Check.
• Diverged from entrenched supply chains to develop technology in-house and lowered per-unit development costs for an industry-leading infotainment platform. Check.
• Addressed a software-related vehicle safety recall in one day for almost 30,000 cars. Check
• Created a company destined to influence the industry as a whole and did so while pleasing Wall Street. Check.

Tesla has established benchmarks for infotainment system hardware, software flexibility, and manufacturing supply chain. The company innovated powertrain design, which has proven both robust and viable for everyday use. And it has received plenty of accolades for aesthetic design from the automotive media. The result is that "made in Silicon Valley" is no longer roundly dismissed as an option for an automotive OEM.

So what's next for Tesla? How does it maintain its leadership in technology development? Has it created a sustainable competitive advantage? Can it deliver on promises of a new luxury crossover with the Model X and a new high-volume EV competitor with the Model 3? Will Tesla be able to steal market share from not only luxury marques, but also from higher-volume brands?

Going forward, Tesla faces five distinct challenges:

Consumer demand. Perhaps the most significant is consumer acceptance of electric vehicles. In the first eight months of 2014, EVs accounted for only 0.7% of the 11.2 million light-vehicle sales in the US. Even Renault-Nissan CEO Carlos Ghosn, a staunch supporter of EVs, last year acknowledged Renault-Nissan would miss its original 2016 target of selling 1.5 million EVs by four to five years.

Dealerships and service. Today, Tesla's direct-sales model is illegal in most US states. As Tesla attempts to go mainstream, it will need the legal restrictions lifted or be forced to adjust its model. Further, as vehicles age and the numbers sold increase, there will be maintenance issues that cannot be handled by OTA software updates. Tesla will need to build out an after-sales service network that is robust enough to handle the demand.

Marketing. To date, demand for the Model S exceeds supply. But as the company targets the mass market with the Model 3 and aims for 500,000 units sold in 2020, it will need to beef up its marketing. Tesla's Apple Genius-bar-inspired dealership model has worked for the affluent early adopters, but can it be scaled up to meet its sales targets?

According to IHS registration data, 51.8% of all Tesla buyers have annual household incomes over $150,000. By comparison, the percentage of Chevrolet Malibu buyers with a household income higher than $150,000 is only 6.5%. Tesla will need to create a marketing strategy that targets economy-car consumers, who are notably different than those who buy the $80,000 to $100,000 Model S.

Production Boosting output will likely mean growing pains for Tesla as it transitions to a high-volume production model. How the company manages the transition will determine Tesla's near-term future. Of course, many automakers have had difficulties ramping up new plants or launches and yet overcome the challenges in the longer term. While growing pains are to be expected, there is no reason to believe Tesla does not have the capacity to become a volume manufacturer.

Innovation. Tesla has already made a name for itself around technology adoption and innovation. But it will be challenged, as all first movers are, to maintain that lead and continue to push the boundaries with future products. Assuming the gigafactory and its supply chain allow Tesla to make a mass-market offering and keep its infotainment stack as an industry benchmark, the company's next move will be automated driving. Musk has already stated that Tesla will "hit the market" by 2017 with a partially self-driving vehicle. With many other OEMs targeting this time frame as well, Tesla might not be as disruptive in automated driving as it has been in infotainment design and sustainable mobility

But then again, it might surprise the market and break loose another game-changing product or technology before the rest of the automotive industry is ready—because that's how Silicon Valley works.

Tesla's user-experience focus sets it apart

We live in an era of smartphone ubiquity. So we are routinely disappointed when we get into our cars and are forced to make do with resistive touch screens (if we are lucky) or LEDs and vacuum fluorescent displays controlled by dials and buttons (if we are not). Tesla understands the importance of smartphone ubiquity to modern life, so it's no accident the transition is seamless when one climbs into a Model S

That is not the case with the majority of comparably priced vehicles from other auto manufacturers. Indeed, many of the recent automotive infotainment systems that the IHS Teardown Team has analyzed feature relatively small displays (typically 7-inch diagonal size or less) and low resolution (typically 800 x 480 WVGA or less).

Then there's the touch technology. Many of the touch screens IHS tears down in automotive head units are using resistive technology. Combine these legacy technologies with often underpowered processing chips and proprietary software and you often end up with a user experience that is unfamiliar, not intuitive, and has a lot of "latency" issues (meaning it's slow).

At the center of the dashboard in the 2013 Model S is the Tesla Premium Media Control Unit, which blows away all of the head units we have seen in specs, not to mention sheer size. The 17-inch diagonal display with touch screen makes for a very large assembly when removed from the dash. Inside the unit are many subassemblies, which are all modular, giving Tesla numerous design options for future models.

Several of the printed circuit board (PCB) assemblies, including the main assembly, feature Tesla Motors logos and copyrights, meaning that they are all designed and controlled by Tesla. In and of itself, this is unusual, as we find that most automotive OEMs entrust and outsource the bulk of their head unit designs to third parties such as Harman

Automotive, Panasonic, Alpine, Denso, Pioneer, and others. Tesla is thus designing and controlling the bill of materials down to the component level. This is closer to Apple's design-and-build model than it is to other automakers.

Such an approach affords Tesla leverage in the supply chain, more direct control over the finished product, and ultimately more control over the user experience. It also gives Tesla a potential performance and technology edge that others might find difficult to quickly emulate, as so much of the design is done in-house at Tesla rather than by the head unit suppliers.

Many other PCB assemblies are modular and come from third parties, such as the processing PCB, which is a turnkey solution from NVIDIA, and the air interface module, which is from Sierra Wireless.

All told, there are 10 PCB assemblies in Tesla's media control unit. The modularity of this design is not unusual for automotive electronic systems and allows Tesla many options. If Tesla wants to upgrade the processing power or change the air interface module, it may be possible to achieve this more easily and with less redesign than if all of the functions were integrated into fewer PCB assemblies. In this sense, modularity of design, rather than aggressive integration, has always been an automotive electronic standard. Not only does modularity give automotive designers many upgrade options, it improves reparability.

The center console of the Tesla Model S is dominated by a 17-inch touch screen infotainment system, which is an industry benchmark for automotive display integration.

What's inside the Model S?

In August 2014, IHS bought a second-hand 2013 Tesla Model S. The Los Angeles-based IHS Technology Teardown Team set to work pulling it apart to examine all primary systems inside the car. The team has cataloged every component and developed a detailed bill of materials for each system that includes the technical specifications, cost, and manufacturers of the components. In addition, the team estimated the labor and manufacturing cost of each system.

The 12 systems analyzed by the IHS Teardown Team comprised the following:

• Premium Media Control Unit
• Instrument Cluster
• EV Inlet Assembly
• High-Voltage Junction Box
• Battery Charger
• Thermal Controller
• Liftgate Left Hand Taillight
• Power Liftgate Module
• Body Control Unit
• Sunroof Control Unit
• Passive Safety Restraints Control Module

Mark Boyadjis, Senior Analyst, Infotainment and Human-machine Interface, IHS Automotive Andrew Rassweiler, Senior Director, Teardown Services, IHS Technology Stephanie Brinley, Senior Analyst, Americas, IHS Automotive Posted 7 October 2014

Keep yourself updated with the latest news of automotive and mobility industry featured on our Mobility News and Assets Community page to stay ahead of your competition.

Strong electric motor growth and eAxle development will power the next decade of EVs

BriefCASE: Can data privacy concerns spoil the connected-car party?

BriefCASE: Software-defined vehicles - An identity crisis for the industry?

• Global (EN)
• Albania (en)
• Algeria (fr)
• Argentina (es)
• Armenia (en)
• Australia (en)
• Austria (de)
• Austria (en)
• Azerbaijan (en)
• Bahamas (en)
• Bahrain (en)
• Bangladesh (en)
• Barbados (en)
• Belgium (en)
• Belgium (nl)
• Bermuda (en)
• Bosnia and Herzegovina (en)
• Brasil (pt)
• Brazil (en)
• British Virgin Islands (en)
• Bulgaria (en)
• Cambodia (en)
• Cameroon (fr)
• Canada (en)
• Canada (fr)
• Cayman Islands (en)
• Channel Islands (en)
• Colombia (es)
• Costa Rica (es)
• Croatia (en)
• Cyprus (en)
• Czech Republic (cs)
• Czech Republic (en)
• DR Congo (fr)
• Denmark (da)
• Denmark (en)
• Ecuador (es)
• Estonia (en)
• Estonia (et)
• Finland (fi)
• France (fr)
• Georgia (en)
• Germany (de)
• Germany (en)
• Gibraltar (en)
• Greece (el)
• Greece (en)
• Hong Kong SAR (en)
• Hungary (en)
• Hungary (hu)
• Iceland (is)
• Indonesia (en)
• Ireland (en)
• Isle of Man (en)
• Israel (en)
• Ivory Coast (fr)
• Jamaica (en)
• Jordan (en)
• Kazakhstan (en)
• Kazakhstan (kk)
• Kazakhstan (ru)
• Kuwait (en)
• Latvia (en)
• Latvia (lv)
• Lebanon (en)
• Lithuania (en)
• Lithuania (lt)
• Luxembourg (en)
• Macau SAR (en)
• Malaysia (en)
• Mauritius (en)
• Mexico (es)
• Moldova (en)
• Monaco (en)
• Monaco (fr)
• Mongolia (en)
• Montenegro (en)
• Mozambique (en)
• Myanmar (en)
• Namibia (en)
• Netherlands (en)
• Netherlands (nl)
• New Zealand (en)
• Nigeria (en)
• North Macedonia (en)
• Norway (nb)
• Pakistan (en)
• Panama (es)
• Philippines (en)
• Poland (en)
• Poland (pl)
• Portugal (en)
• Portugal (pt)
• Romania (en)
• Romania (ro)
• Saudi Arabia (en)
• Serbia (en)
• Singapore (en)
• Slovakia (en)
• Slovakia (sk)
• Slovenia (en)
• South Africa (en)
• Sri Lanka (en)
• Sweden (sv)
• Switzerland (de)
• Switzerland (en)
• Switzerland (fr)
• Taiwan (en)
• Taiwan (zh)
• Thailand (en)
• Trinidad and Tobago (en)
• Tunisia (en)
• Tunisia (fr)
• Turkey (en)
• Turkey (tr)
• Ukraine (en)
• Ukraine (ru)
• Ukraine (uk)
• United Arab Emirates (en)
• United Kingdom (en)
• United States (en)
• Uruguay (es)
• Uzbekistan (en)
• Uzbekistan (ru)
• Venezuela (es)
• Vietnam (en)
• Vietnam (vi)
• Zambia (en)
• Zimbabwe (en)
• Financial Reporting View
• Women's Leadership
• Corporate Finance
• Board Leadership
• Executive Education

Fresh thinking and actionable insights that address critical issues your organization faces.

• Insights by Industry
• Insights by Topic

KPMG's multi-disciplinary approach and deep, practical industry knowledge help clients meet challenges and respond to opportunities.

• Advisory Services
• Audit Services
• Tax Services

Services to meet your business goals

Technology Alliances

KPMG has market-leading alliances with many of the world's leading software and services vendors.

Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work. That’s why KPMG LLP established its industry-driven structure. In fact, KPMG LLP was the first of the Big Four firms to organize itself along the same industry lines as clients.

• Our Industries

How We Work

We bring together passionate problem-solvers, innovative technologies, and full-service capabilities to create opportunity with every insight.

• What sets us apart

Careers & Culture

What is culture? Culture is how we do things around here. It is the combination of a predominant mindset, actions (both big and small) that we all commit to every day, and the underlying processes, programs and systems supporting how work gets done.

Relevant Results

Sorry, there are no results matching your search..

ServiceNow | Automotive industry case study

Putting the client in control

The Backstory

A major automotive manufacturer had spent a number of years outsourcing its service management capabilities and IT service desk. However, the services they were getting were not meeting quality nor cost expectations, and it became evident that they needed to take more control of the processes themselves. While they could outsource these services, it was their responsibility and management that would provide the most value to their organization.

As the contract with their provider was coming to an end, the client decided to take control of these functions themselves, building out an overall service management organization. Ultimately, this shift would unify their people, process, and tools. The aim was to create a brand new platform that would improve the existing level of customer service, streamline support tasks, and place responsibility for the performance of IT back into their hands. 

The Challenge

We were brought in to assess the service management plans the client already had in place, discover what would be needed to enhance them, and create a transition road map that aligned with their priorities. As their previous contract drew to an end, the client faced the prospect of not having an ITSM platform in place. This was not an option: The deadline for the transition was fixed and had to be met. We began in February and needed to go live by July. This left no margin for error to successfully implement ServiceNow across six different IT process areas and for about 1,500 IT users in North America. A project of this size would typically take a year to complete, but we dove right in!

Our Approach

Achieving their objectives required a significant amount of “jump-start” tools and an agile development approach. KPMG brought both. We decided to gather and respond to requirements from the client in real time. Instead of building the platform all at once, we began with identifying the client’s needs, prioritizing them, and developing solutions for them as they came in. We started with our view of critical functionality and leading practice and then confirmed what the client’s absolute “must-have” capabilities were. We challenged the status quo with new ideas and ways of thinking. We then underwent a 12-week sprint cycle to make those key protocols functional, providing regular views of the build through “show-me” sessions and adjusting priorities as needed. Around all this, we supported organizational change, training, and testing activities to help ensure adoption despite the aggressive time line. Once the basic processes were complete, we then introduced elements that we knew could support that infrastructure. This would test our flexibility, experience, and capabilities to the fullest.

The Results

By the end of the project, we had deployed a true platform to run the IT business. The solution included the configuration of six core ServiceNow applications, service catalogue of over 70 services for end-user consumption, over 150 reports including a custom view of “business disruption”, and a configuration management database with 20 CI classes and over 60,000 CI records. The solution provided an improved experience for their users. It gave the client a detailed map of their applications and infrastructure, helping them understand impact, potential, and relationships. It provided levels of consistency and automation that they had not seen before. We were then able to start passing control to the client, helping them build out an ITSM governance structure and allowing them to manage the system themselves, enhancing it to their needs as they evolved.

Meet our team

Explore other services tailored to your business

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement .

Job seekers

Visit our careers section or search our jobs database.

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Case Studies, Articles and White Papers

We have already been able to successfully apply our knowledge and experience in a variety of projects in product development, production, and aftersales. Get a comprehensive insight into our past projects with a selection of case studies, articles and white papers.

Whether tests in the passenger car and commercial vehicle sector, vehicle camouflage, competencies in the field of electromobility, fleet management, vehicle repair centers or much more: The case studies, articles and white papers show the complexity of our services in the automotive industry and provide you with an interesting insight into our projects.

Confidentiality of customer information and project information

All Formel D employees work in accordance with strict enterprise corporate guidelines. Among these we also include discrete handling of strictly confidential information. Consequently, we only publish selected reference reports that are chosen in a direct exchange with the customer.

Technical Representation C5 – A key service to assure supply chain quality

QCC Support for Yamaha Motorcycle Production in Brazil

Formel D supports Yamaha on the client’s premises in Manaus in northern Brazil with approximately 40 employees in the quality and supplier management divisions since 2019.

Increase Efficiency in Vehicle Software Management with Full Scope HIL-Management

This white paper explains how to recognize problems in the product and relevant vehicle projects early on in a complex HIL landscape and how to introduce suitable preventive measures to resolve these issues in good time in a complex network of dependencies.

Comprehensive Expertise in physical and software Testing

Article in Top Company Guide 2020 | For manufacturers in the industry, there is a much larger demand for vehicle testing prior to moving into series production. Formel D Group supports its customers with numerous services in this area.

Commercial Vehicle Testing – Under Realistic Conditions

Article in Informel 1/2019 | Due to the rapid development of increasingly complex vehicles, manufacturers are counting on experienced partner support in the field of vehicle testing. Formel D is responsive to this environment and is continually expanding the scope of its services in this area.

Vehicle Testing 2.0

Long version of interview in OEM & Lieferant 2/2019 | Vehicle tests help ensure vehicle quality under a wide range of external conditions. Formel D supports its customers in preparing, organizing, and carrying out test runs on public streets as well as private tracks and test sites.

The right components at the right time

Article in Top Company Guide 2019 | In the summer of 2018, Formel D joined the “Retail Enabling Parts Management” (REPAM) project as a strategic partner, supporting dealers of a premium German manufacturer in optimizing their stock management processes.

Comprehensive Services for new Mobility

Article in Automobil Industrie | E-mobility, connected cars, shared mobility, autonomous driving or increasing digitalization: Based on the global trends in the automotive industry, the key to success and sustainability more than ever lies in the optimization of quality assurance processes.

Quality assurance for vehicles of all sizes

Article in OEM & Lieferant | The Formel D Group offers a comprehensive range of services along the entire automotive value chain for vehicle types of all sizes.

Electric Future – Supplier management in China

Article in customer magazine Informel | China is increasingly becoming a pioneer of electric mobility. In light of the booming market for electric vehicles, Formel D is active in the field of supplier development for various OEMs in the People’s Republic.

Professional Hotline Support

Article in customer magazine Informel | Since 2015, Formel D has been active in the fields of service management and technical support for a German premium manufacturer. The Group assists the automotive manufacturer with its comprehensive system knowledge and experience and helps to increase customer satisfaction.

Quality Confirmation Center (QCC)

Article in OEM & Lieferant | As digitalization increases, Formel D constantly improves its Quality Confirmation Centers (QCCs) to help manufacturers safeguard the supply of parts for assembly lines.

Full Trialing for vehicles of tomorrow

Article in OEM & Lieferant | New propulsion technologies, lightweight designs, optimized consumption demands, the sophisticated comfort requirements of final consumers and the introduction of extended assistance systems – these are just a few of the topics which are now affecting development processes.

Vehicle Repair Center (VRC)

Customer service now plays an increasingly important role in the holistic consideration of the vehicle lifecycle. Proactive quality- and solution-oriented handling in this field forges a sustainable positive relationship to the brand. Formel D is aware of the importance of customer loyalty, so it now offers a similarly wide range of services in the aftersales area as it does in development and production. Service, vehicle, dealer and warranty management form the basis of the service portfolio in this segment.

Interactive Workshop Media

The time management of visits to passenger car workshops makes a crucial contribution to customer satisfaction. Complex repairs in challenging installation geometries can be very time-consuming. The law prescribes comprehensive repair instructions for each vehicle derivate, but it does not specify all of the parameters. Formel D develops easy-to-understand workshop literature with multimedia approaches and an especially high information content with the aim of supporting a convenient and effective repair process.

Pre-Delivery Inspection (PDI)

Formel D uses structured concepts for pre-delivery inspections to support manufacturers with their upstream fleet management. At specially equipped sites, the service provider processes vehicles for internal delivery. This ensures that they are in perfect technical and optical condition at all times while taking the manufacturer’s guidelines into account.

Holistic Assurance and Verification

Article in Automotive Testing Technology International | The automotive sector is characterized by progressively shorter development times and an increasing density of derivates. Also, the rising proportion of electronic components in vehicles leads to new and expanded demands for solutions in the field of vehicle, software and component tests. Formel D as an experienced partner of the automotive industry expertly maps these scopes of services in everyday virtual and real-life testing.

Quality Assurance using the E-Report

Article in OEM&Lieferant | Countless Tier 1 and Tier 2 suppliers are involved in the complex process of manufacturing a car. This means that quality assurance includes an increasing number of incoming goods checks which the processing manufacturers prefer to put in the experienced hands of the Formel D Group.

Vehicle Management Worldwide

From the East Coast to the West, Formel D gives expert support to a German premium manufacturer in its Performance Centers in the US using its globally standardized procedures and qualified professionals.

EDI – Electric Data Interchange

Article in OEM & Lieferant | The global economy is currently experiencing a period of increased and unprecedented activity in which the worldwide exchange of goods and services gives rise to supply relationships with far-reaching economic impacts. Worldwide communication between, and integration of, suppliers is required in order to meet all present-day requirements of a corporation acting globally.

Competence center for E-Mobility

Article in OEM & Lieferant 1/2019 | 115,000 m² of parking spaces for around 5,750 vehicles, a technical center measuring 1,500 m² with professional equipment and good water, rail and road connections: Since 2016, Formel D has set benchmarks with its Verification and Campaign Center (VCC) in Ahlhorn, North Germany. Now, the Group is gradually expanding the location into a Competence Center for electromobility to meet ever-growing customer demand.

Global supplier analysis and qualification for our customer ABB

Since the start of 2012, Formel D has been lending its support to the global group, ABB, to develop its suppliers. Engineers and quality managers employed by the service provider ensure on-time delivery in line with agreed quality standards.

Processing of show cars for Volkswagen

For the second time in succession, Formel D was responsible for smooth procedures and a perfect optical impression of the show cars at the 9th Group After Sales Conference (GASC) held by Volkswagen. The Formel D team offers a complete solution for this purpose, including logistics management, individual processing, subsequent quality checking and support during the days of the fair.

Innovative production processes and future-oriented technologies

The Formel D Group supplies a German premium manufacturer with various quality-assuring service tools to ensure an optimum production process in vehicle manufacture.

Packaging Management – Perfectly packaged

For 18 years Formel D has been working in the field of packaging manage- ment. The premium service provider specifies, constructs, improves and tests packaging materials and develops packaging concepts for the after sales sectors of Opel/GM and BMW.

Preparation of show cars for BMW

At the Leipzig car show, BMW gave its visitors a few moments that were literally illuminating. They were made possible by the vehicles’ special interior lighting system – which was installed by Formel D. It’s just one of the many services that the service provider offers in its CARing. portfolio.

Tracing errors and preventing new ones

Guarantee and warranty costs burden the automotive industry worldwide swallowing up tens of billions. They are a clear indicator that further improved processes and controls need to be established. The Formel D Warranty Solution Center (WSC) offers solutions for cost reduction and quality optimisation along the entire process chain.

Problem solving – made easy

In order to constantly improve the quality of serial production processes, the automotive industry relies on the standardised problem management process (PMP). BMW conferred the search and identification of possible error patterns also to the Formel D Group.

On board from the beginning

It was 18 years ago that the foundation was first laid for the creation of customer and workshop literature and the determination of labour time for Opel AG. Since 1997, Formel D has also been responsible for serviceability tests and other coordinating activities in the GM After Sales division. Today, Formel D is in charge of projects in these areas for GM/Opel all over the world.

Interview literature and serviceability

Formel D works for General Motors not only in the areas of literature and serviceability, but also as a builder of bridges to new regions. For Joachim Beitz and Ralf Rösner of GM/Opel, this represents a special strength of the service provider.

Formel D opens RMC – Refining Manufacturing Center

By opening its Refining Manufacturing Center (RMC®) in Brussels in June 2010, the Formel D Group has added a new innovative concept to its service spectrum. With the launch of the Audi A1, Audi AG has introduced a new product to the “small urban sports car” market segment. Formel D has been commissioned to carry out customer-specific refinements for Audi A1s by adding high-quality Audi Genuine Accessories and other finishing touches once the main production process has been completed. Formel D is fully responsible for the work it carries out on Audi vehicles at the RMC.

• Data Privacy Statement
• Terms of use
• General Terms and Conditions
• General Purchase Terms and Conditions

Formel D Group

Move fast, think slow: How financial services can strike a balance with GenAI

Take on Tomorrow @ the World Economic Forum in Davos: Energy demand

PwC’s Global Investor Survey 2023

Climate risk, resilience and adaptation

Business transformation

Sustainability assurance

The Leadership Agenda

PwC’s Voice of the Consumer Survey 2024

The s+b digital issue: Corporate “power changers”

The New Equation

PwC’s Global Annual Review

Committing to Net Zero

The Solvers Challenge

Loading Results

No Match Found

Five trends transforming the Automotive Industry

The mobility of the future is “ eascy”  – electrified, autonomous, shared, connected and “yearly” updated. In this study, we describe the factors influencing the sector leading up to 2030 in the key US, Europe, and China markets. It also describes how the automotive industry should restructure itself in terms of volume, scale, and complexity.

Through mathematical modeling of key performance indicators and demographic trends, the paper discusses:

• Mobility behaviour of users through social personas and how they could influence traffic demand;
• External factors that will influence mobility habits, vehicle mileage and frequency of usage;
• Predictions of car inventory, replacement cycles and new sales; and
• Implications for manufacturers, suppliers, service providers and their business models. 

Electrified  – the transition to emissions-free mobility will become a global requirement. Electricity used to charge vehicles will increasingly come from renewable sources to ensure carbon dioxide-neutral mobility.

Autonomous  - The development of vehicles which require no human intervention will reduce the use of public mobility platforms and offer individual mobility to new user groups.

Shared  – Professionally managed fleets of shared vehicles will reduce the cost of mobilty by a significant amount through more efficient use of expensive mobile assets.

Connected  – This applies in two ways: communication between cars or with traffic management infrastructure or between vehicle occupants and the outside world. The car of the future will become a “third place” between home and workplace, combining features of both. 

‘Yearly’ updated  – The range of models will be updated annually to integrate the latest hardware and software developments, and react to changing requirements of shared fleet buyers.

Our mobility habits will change 

The percentage of shared and autonomous mobility in overall road track will rise significantly.

Our forecasts suggest that by 2030, more than one in three kilometres driven could already involve sharing concepts. At the same time, user preferences will move more towards autonomous mobility. We calculate, based on mileage, that by 2030, the share of autonomous driving in overall traffic may rise to as much as 40%. Developments in Europe and the US are expected to happen at a roughly parallel pace. In China, by contrast, the proliferation of shared and autonomous mobility could happen faster than in the Western world. This would make China the leading market for the transformation of the automotive industry. 

Effects on the automotive value chain

The comprehensive and rapid reorganisation of the automotive sector after 2025 will have far-reaching consequences for the entire industry and its value chains. Elementary structures and attitudes will have to change fast in order to cope with the developments by 2030 and beyond.

If they want to remain successful, both manufacturers and suppliers will have to offer user-oriented innovations. All these trends are likely to become increasingly apparent between 2020 and 2025 – which means that these are decisive years for manufacturers and their suppliers.

Download report (4.2mb) Five trends transforming the Automotive Industry

Related content, the automaker’s dilemma: getting more impact from innovation capital.

The current wave of auto innovation has emerged with remarkable speed: new safety features, connectivity gadgets, and real progress toward bringing autonomous...

Harald Wimmer

Partner, Global Automotive Leader, and Global Smart Mobility Co-Leader, PwC Germany

Fax: +49 69 95859-44113

Christoph Stürmer

Global Lead Analyst PwC Autofacts, PwC Germany

Tel: +49 69 9585 6269

© 2017 - 2024 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

• Legal notices
• Cookie policy
• Legal disclaimer
• Terms and conditions

Get beyond the wheel in Automotive

The traditional automotive industry has reached a crossroads. We are now operating in a mobility ecosystem, shifting into the next iteration of automotive. To move forward, it’s time to embrace the ecosystem, collaborate beyond industry lines, and find new ways of innovating and partnering for success.

Automotive now

of automotive leaders believe digital services will be key differentiators by 2040

in potential revenue from digitally-enabled services—comprising 40% of total auto industry revenue

of all new cars sold in Europe in 2030 will be electric vehicles

How to reinvent automotive

Create digitally connected experiences with customers at the core.

Build vehicles with a connected services platform for an immersive user experience

Create the circular car by embedding sustainability across the production line

Reinvent the automotive customer experience

Today’s automotive customers want consistent, connected experiences. Achieve this by leading with service and creating engaging and meaningful omnichannel experience.

New revenue sources

Build customer loyalty to drive product and service repurchase — generating new revenue opportunities.

Customer focus

Improve your marketing, commerce and service effectiveness by integrating consistent, customer-centric experiences across the value chain.

Faster transformation

Speed transition of your mobility tech ecosystem — and minimize your risk — by using our accelerators and transformation capabilities.

Automation solutions

Use global automation to reduce your back-office operations — and quickly improve your return on investment and profit.

A reimagined business

Reinvent customer engagement across marketing operations, sales and customer service to drive growth and new customer-centric experiences.

Vehicles aren’t just hardware anymore. They’re connected platforms.

Today’s automotive revenues increasingly reflect a digital business model, in which the vehicle acts like a connected platform.

$3.5 trillion

New revenue opportunities.

Generate new revenue by developing new platforms and services — including safety, comfort, operational and entertainment features.

Delighted customers

Stay ahead of evolving customer expectations by seamless integration of the vehicle ecosystem.

Streamlined engineering

Streamline your software development process with our systems engineering expertise, test factories, device farms and automation solutions.

Faster time to market

Speed up your R&D with our tech stack and open-source solutions. Build your team with our tech experts and global delivery centers.

Agile organization

Break down organizational silos to focus on customers and product ownership. Use tools such as SAFe/DevOps to accelerate your transformation.

Drive value and impact by combining digital and sustainability

Sustainability targets in the automotive industry have sparked a technology revolution in electric vehicles and energy transition.

Sustainable mobility

New industry solutions — like enhanced fleet electrification and seamless charging — will help balance the needs for mobility and sustainability.

Growth, sustainability and recovery

The e-mobility revolution can greatly reduce resource consumption, while speeding growth.

Segments we support

Delight passengers with intelligent solutions for more business value.

Transform tolling operations through a reimagined mobility experience.

What’s trending in automotive

Automotive’s strategic plan to tackle a new world.

Accenture pioneers the use of advanced GenAI and real-time graphics capabilities with Defender to elevate the modern luxury client experience, using NVIDIA’s Omniverse platform and NVIDIA Edify-powered models.

A new report from Accenture helps automakers address the key challenges to successfully monetizing digital services in the automotive industry.

Accenture identified 4 approaches to help OEMs transition to software defined vehicle experiences & compete effectively in the automotive industry.

Leveraging technology to drive new luxury experiences

How Volkswagen is driving clarity and confidence in their sustainability strategy.

Accenture details how original equipment manufacturers (OEMs) can reinvent automotive customer CX & improve automotive customer journeys.

Five imperatives the C-suite must address to reinvent in the age of generative AI.

Partners in change

Leverage the experience of AWS and Accenture with proven technology offerings and industry-ready solutions.

Unleash empowering human-centric design and Google’s innovative tech.

The largest global Microsoft practice. Eighteen-time Microsoft Global Alliance SI Partner of the Year. Powered by Avanade. Runs on Microsoft.

Reimagining human experiences that reignite growth and accelerate the path to value.

Helping you unlock the value of your SAP application portfolio with the power of intelligence, innovation and industry.

Awards and recognition

Microsoft 2023 global automotive, mobility and transportation partner of the year.

Accenture, in partnership with Avanade, has been named 2023 Microsoft Global SI Partner of The Year. Through our extensive experience, Accenture has established an unmatched track record of success in implementing Microsoft solutions across various industries and geographies.

Our leaders

Juergen Reers

Senior Managing Director – Global Industry Sector Lead, Automotive

Marcello Tamietti

Managing Director – EMEAan Automotive Lead

Anant Kamat

Managing Director – US

Markus Muessig

Managing Director – Growth Markets Automotive Lead

Andrea Cardoso

Managing Director – Latin America Automotive Lead

Grow your careers at the heart of change

The Indian automotive industry: From resilience to resurgence?

Automotive is one of the core sectors of the Indian economy and, to a great extent, serves as a bellwether for its current state. An ominous fall in commercial-vehicle (CV) sales foretold impending economic challenges in both 2012 and 2019, while a steep rise in passenger-vehicle (PV) and two-wheeler (2W) sales was a harbinger of good economic news in 2010.

The manufacture of transport equipment accounts for 10 to 12 percent of the gross value added (GVA) within India’s manufacturing sector. 1 As reported by the Reserve Bank of India and the Government of India. Any decline in that area significantly hurts India’s economic outcomes. Employ­ment is also hard hit when vehicle sales fall, since the automotive sector provides 37 million direct and indirect jobs while stimulating job creation in other industries.

While the Indian automotive industry has faced many recent challenges , including the devastating COVID-19 pandemic, its growth potential is clear. In fact, the sector is expected to account for 65 million new jobs within India by 2026 as compa­nies increase production. 2 National Automotive Mission Plan 2016–26 (AMP 2026), Government of India and the Society of Indian Automobile Manufacturers. To help domestic and international players in India capture new opportu­nities as the market expands, we examined the current state of the country’s automotive sector and identified imperatives and enablers for success.

Past challenges and the potential for growth in the Indian automotive industry

What started as a small fire in September 2018—a dip in sales of CVs after the regulatory change in the axle-load norms—turned into a full-blown conflagration, at a scale not experienced in the last two decades, as fundamental economic challenges roiled the Indian automotive industry. Credit availability fell, demand slowed (especially in infra­structure and mining), and discretionary spending dropped, all of which contributed to a decline in auto sales. In early 2020, just as the industry was expected to recover, the COVID-19 pandemic introduced challenges that hurt demand and inter­fered with the automotive industry’s deeply intertwined supply chains.

More recently, however, the situation has looked brighter. In late 2020, government travel restrictions eased, India’s harvest was good, and the festive season stimulated demand in some high-volume seg­ments. Both 2Ws and PVs showed a recovery in month-over-month sales during that time (exhibit). 3 VAHAN (Ministry of Road Transport & Highways, Government of India).

Despite the ongoing challenge of COVID-19, the Indian automotive industry seems to be overcoming most of its challenges, and many are now in the rearview mirror.

Despite the ongoing challenge of COVID-19, the Indian automotive industry seems to be overcoming most of its challenges, and many are now in the rearview mirror. The sector is also benefiting from new tailwinds, such as global supply-chain rebalancing, government incentives to increase exports, and technology disruptions that create white spaces. These developments will help create opportunities at all levels of the automotive value chain.

Industry participants are now beginning to see a clear highway, where they can push on the gas, accelerate, and go into a higher gear. From our research, we have distilled a set of imperatives and enablers that industry participants must understand as they attempt to fast-track their value-creation trajectories.

Imperatives for the Indian automotive industry

Three imperatives are crucial for successful companies: pursuing growth, increasing resilience, and striving for leadership by promoting disruptive trends.

Focusing on domestic, international, and downstream growth

Growth is oxygen for any business, more so if the industry is coming out of a challenging phase. For that reason, players in the Indian automotive industry should consider pursuing all promising opportunities.

The domestic market. While first-time buyers have long dominated the Indian automotive market, the focus is shifting to repeat customers. With the government bringing out a revamped scrappage policy, the resale market may become even more important. If automakers want to concentrate on repeat buyers, they must develop new strategies to facilitate the resale of existing vehicles across categories. Already, some start-ups have attempted to simplify and improve the process of buying and selling used cars. If automakers proactively shape the resale landscape, they could help revive urban demand.

Indian automotive players should also attempt to bring value-seeking customers back into the market. This segment shrunk because the Indian govern­ment’s Bharat Stage VI emissions norms increased prices by about 7 to 9 percent for 2Ws and 3 to 5 percent for cars. To lower the upfront cost of owning a vehicle, automakers should consider embarking on a new wave of productivity transformation.

Automakers can innovate by creating alternate ownership options for prospective customers. Simultaneously, they can open additional avenues for new customers to enter the market. Some automakers now offer leasing options , especially in the PV segment, but their offerings have narrow limits for vehicle type, lease duration, and other features. As millennials’ mobility needs evolve and move away from direct ownership, the development of better leasing options will become imperative within the domestic market.

With digital channels gaining popularity among India’s consuming classes, automakers must develop direct-to-customer options. A best-in-class digital and analytics transformation can also help leaders differentiate themselves from the competition.

With digital channels gaining popularity among India’s consuming classes, automakers must develop direct-to-customer options.

International opportunities. International markets, especially those in Africa that are similar to India, are experiencing a rise in per-capita GDP and reaching the levels at which automotive sales tend to expand significantly. Indian companies have already navigated this transition at home and can follow the same script to succeed in international markets. By expanding inter­nationally, Indian automakers will increase growth and sales volumes while diversifying risks and reducing demand cyclicality.

When expanding internationally, Indian automakers will not have to start from scratch. Their brands already have a strong global presence in certain segments, such as 2W and 3-wheeler (3W), and they have learned from this experience. Indian products, with their high customer value and functional quality, are likely to offer a strong fit for emerging-market customers. Traditionally, Indian automakers have only pursued international opportunities sporadically. Now, however, they should double down on select international markets and invest in expanding their brand, distribution, and service reach to build a lasting franchise.

This may be the best opportunity for Indian automotive suppliers  to expand internationally in decades because of recent tailwinds. As global automakers rebalance their supply chains, they are looking for sourcing hubs outside China. Simultaneously, the Indian government is offering production-linked incentives, totaling $7.5 billion over the next five years, to encourage exports. Automotive suppliers can leverage their strengths, including their competitive costs, process expertise, high quality, and innovation focus, to pursue international growth and leverage the recent tailwinds. Many Indian companies have already done so successfully. For instance, exports account for about 60 percent of revenues at the leading forging player and between 20 to 40 percent at many tire companies. With production-linked incentives continuing, more companies could achieve similar results.

Downstream value chain. Expanding into the downstream value chain could provide an additional avenue of growth for Indian automotive companies. On average, the upfront cost of a vehicle only accounts for 20 to 25 percent of lifetime ownership costs. Other major components include fuel, service, financing transactions (such as vehicle loans and insurance), and resale value.

Globally, some OEMs have already ventured into these downstream-value-chain elements through new businesses, such as BMW’s Secure, which offers finance and insurance services. Others have pursued partnerships, such as Ford’s agreement with Geotab, which allowed it to enter the vehicle-data value chain. Even in India, there have been some early experiments in downstream ventures, such as Service Mandi from Ashok Leyland and True Value by Maruti Suzuki. First movers in this space have an opportunity to shape a digitally enabled downstream ecosystem that provides a one-stop solution for various customer needs, including scheduled service, breakdown service, resale, and purchase of personalized accessories. Such comprehensive solutions would create a best-in-class ownership experience.

Would you like to learn more about our Automotive & Assembly Practice ?

Achieving greater resilience in operations, especially the product, manufacturing, and supply-chain dimensions.

The last couple of years have laid bare a simple fact: operational efficiency must be matched with operational resilience. A McKinsey study  has estimated that supply-chain disruptions, some lasting over a month, could occur every 3.7 years across industries. Amid such uncertainty, com­panies will need operational resilience across the entire value chain, especially within product development, manufacturing, and supply chain.

To increase resilience, automakers should under­take a thorough review of their product portfolios to make them more customer-centric. They should also reduce the number of product variants to become more focused. In addition, automakers should reexamine their product-platform architectures and strive to reduce complexity by emphasizing modular product designs. This strategy can reduce part counts by 20 to 30 percent and improve the cost base by decreasing material costs by 6 to 8 percent. One leading Indian car manu­facturer already has more than seven of its car models and over 60 percent of its sales volume on one platform. Other automakers should aim to cut the number of their vehicle platforms by half or more to achieve lower cost structures and faster time-to-market with new products.

As the manufacturing and supply-chain philosophy expands from being just-in-time to just-in-case, companies can win by embedding digital and ana­lytics into their operations. In addition to reducing inefficiencies, this strategy will help companies build the robustness and resilience needed to respond to unpredictable external challenges. Globally, auto­makers are moving very fast to incorporate digital and analytics into their daily work. Consider Volkswagen, which has embarked on a massive Internet of Things and cloud-enabled digital transformation of production and logistics across its 124 plants globally.

As the manufacturing and supply-chain philosophy expands from being just-in-time to just-in-case, companies can win by embedding digital and analytics into their operations.

Becoming a leader by promoting disruptive trends, especially within emerging markets

The mobility landscape will fundamentally transform over the next ten to 15 years, with ACES trends —autonomous driving, connected cars, electrified vehicles, and shared mobility—amplifying their impact. The evolving landscape presents a perfect opportunity for Indian automakers to lead the disruptive changes occurring across segments and gain a competitive advantage.

Today, only about 2 percent of new vehicles sold globally are electrified. The opportunity ahead is much larger, and the winners and losers are yet to be decided. Indian players can become homes for innovation, both domestically and in similar markets abroad, supplying complete products, aggregates, or components worldwide. In traditional micromobility segments (2W and 3W), Indian players can be the global leaders from day one. For PVs, such as cars and SUVs, and light CVs, Indian players can win by following the frugal design requirements essential for emerging markets.

Industry disruptions also create a huge opportunity for automotive suppliers to double down on building a strong position in the global EV supply chain. That will help suppliers gain additional revenues—an important consideration, since most have started to tap out opportunities in the local Indian market. A move into EV will also help suppliers diversify their portfolios and reduce risks related to market demand.

The ACES disruptions may prompt global auto­makers to reassess India’s position in their global priorities. In addition to increasing sales within the country, they may see new opportunities to turn India into a global manufacturing center. Some leading multinational automakers, including Ford and Volkswagen, are already ramping up their exports play and increasing the scale of their Indian operations to sell more products from those facilities abroad.

The unexpected trip: The future of mobility in India beyond COVID-19

Enablers for the indian automotive market.

Three enablers are essential in helping automakers to succeed in the evolving Indian automotive landscape.

Reimagining the partnership ecosystem

The days of going it alone are limited, since the increasing threshold of required investment often necessitates pooled resources. Companies may also find that they can access new customer seg­ments by working with other companies that offer complementary products in areas that their current portfolio does not cover. Likewise, automotive players can benefit from working with partners with complementary capabilities or by sharing the risks associated with certain ventures.

Globally, automakers are reimagining their strategic partnerships to up their game across all the imperatives described above. Some are working at the product level, as GM and Honda are now doing with EV platforms and battery technology. Others are focusing on manufacturing or supply-chain management, as seen in the partnership among Volkswagen, AWS, and Siemens.

As Indian automotive players pursue new partnerships, they should clearly establish their core strengths (the “gives” from their side), as well as the areas where strategic partnerships will be helpful (the “gets” from the partners). They can then move from engaging in transactional relationships to forming “win–win” partnerships with long-term benefits.

Building the organization of the future

Automotive organizations have traditionally had a vertical functional structure with a clear hierarchy and reporting lines. That has served their needs very well for many decades, but it is increasingly creating bottlenecks and preventing companies from being nimble and agile in the face of change. In fact, many business experts claim that companies in other industries should not follow the example of auto­motive organizations, since their siloed structures slow them down.

For best results, automakers should reimagine their organization by developing two end-to-end systems for critical processes: A Product-Creation and Development System (PCDS) facilitates the product-development process from conception through vehicle development for production-ready models. A Customer-Value Delivery System (CVDS) provides a complete operational framework for all processes, from manufacturing to sales and service, thereby reducing siloes and building agility.

Automakers must also build a talent-to-value (T2V) view at each level of the organization by identifying the most critical roles and staffing them with top employees. Although this sounds simple, most orga­nizations fall into the trap of using hierarchy, relationships, or intuition to make decisions about the appropriate talent for different roles . Organizations should move from these heuristics to more scientific and quantifiable T2V measures to identify and fill the most critical roles. To help employees build the capabilities needed in critical roles in the future, companies should create data-based, individualized leadership development plans that are connected to their business objectives.

The focus on developing new systems combined with a T2V view may help companies leapfrog to the next level of performance and successfully execute all their major imperatives.

Transforming the organization through digital and analytics

Digitization and advanced analytics are already enabling unprecedented productivity improvements and increasing the focus on customers. Most leading automotive organizations have articulated a bold aspiration for unlocking real bottom-line impact from these technologies and have created a CXO-level role to drive the transformation.

The first wave of change for automakers is underway. Leading companies get 20 to 30 percent more customer enquiries in their sales system by engaging in targeted digital marketing and partnering with digital platforms to generate leads. They are also deploying advanced analytics to create personalized sales pitches in real time, increasing lead conversion by 5 to 10 percent. Globally, innovative brands such as Tesla and Lynk & Co view digital channels as their future, as opposed to the traditional brick-and-mortar channel. Closer to home, a leading car brand announced a massive increase in digital enquiries—approaching 2 million—and a significant gain in digital sales to levels over 200,000 over the past 18 months.

Automotive suppliers have traditionally leveraged technology much more on back-end operations, with many use cases focusing on enhancing yield, energy efficiency, quality, and throughput in their plants. They have also used technology to make smarter, system-driven decisions on production and supply-chain planning. Now, however, automotive suppliers should undertake an end-to-end digital and advanced-analytics transformation that focuses on business impact rather than technology.

It should have a user-centric design and involve selective investments in critical talent, including tech specialists. To avoid unnecessary delays, companies should adopt an agile approach when developing and testing digital and analytic use cases.

The automotive sector will play a central role in India’s aspiration to become a $5 trillion economy. The recovery from the COVID-19 crisis has created a unique situation in which automakers can reinvent their industry and emerge stronger, both within India and globally.

Brajesh Chhibber and Nitesh Gupta are partners in McKinsey’s Gurgaon office.

The authors wish to thank Gandharv Vig for his contributions to this article.

This article was edited by Eileen Hannigan, a senior editor in McKinsey’s Waltham office.

Explore a career with us

Related articles.

Winning the race for talent: A road map for the automotive industry

ACES 2019 survey: Can established auto manufacturers meet customer expectations for ACES?

• Inventory Quality
• Viewability
• Brand Safety and Suitability
• Measurement & Analytics
• Performance
• Programmatic
• Social Media
• AI Activation
• Retail Media
• For Brands & Agencies
• For Retail Media Networks
• Thought Leadership
• Events & Webinars
• Spotlight: Election Insights
• 2023 Global Insights Report
• DV Authentic Attention®
• Video and CTV
• Trust Center
• Investor Relations

Mercedes-Benz Campaign Drove 24% Higher Attention Performance Over Automotive Industry Benchmarks

BGM OMD Greece, on behalf of its client Star Automotive Hellas, the General Distributor of Mercedes-Benz in Greece, collaborated with DoubleVerify (DV) to evaluate performance with DV Authentic Attention® data. Download our case study to learn how Mercedes-Benz’s Attention Index was 24 percent higher than other automotive advertisers’ performance, driving a 5 percent increase in conversions.

DV Attention Lab™ Presents: Fact, Fiction & Flights, Episode 2

Dv at ces 2024, club med drove stronger brand awareness and brand favorability with high-attention impressions during the “that’s l’esprit libre” campaign.

Partnership starts with a conversation. Whether you have a question about our services, or would like to get a demo of our platform, we're happy to connect.

We're Always Here for You!

Get in touch

Please provide your business details to get our guide.

Get Your Guide Now

Submit your information to complete the Registration

Evaluation of online job portals for HR recruitment selection using AHP in two wheeler automotive industry: a case study

• ORIGINAL ARTICLE
• Published: 12 May 2024

Cite this article

• S. M. Vadivel   ORCID: orcid.org/0000-0002-5287-3693 1 &
• Rohan Sunny   ORCID: orcid.org/0009-0002-2347-3081 2  

38 Accesses

Explore all metrics

Automotive companies are booming worldwide in the economy. In order to sustain in the highly competitive world, every organization tries to create itself a trademark in the market. In our research, we looked at how two wheelers automotive company's selection enhances an organizational performance, which ensures the company's future growth. In today's fast-paced, globally integrated world, human resources are one of the most important production variables. It is critical to preserve and improve economic competitiveness by properly selecting and developing these resources. The main aim of this study is to identify the best online job portal website for recruitment at Two Wheeler Company and to suggest an HR strategy which resonates company’s values and culture. In this study, we have selected 6 criteria and 6 online popular job portals for recruitment with a sample of 15 candidates have been selected. Findings reveal that, AHP method has significant results on the selection of best employer, which helps HR Manager to finalize the decision making process/strategies. Towards the managerial implications section, the researcher aims to design an functional and effective HR strategy that can grasp, engage and retain the top talent in the organization.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price includes VAT (Russian Federation)

Instant access to the full article PDF.

Rent this article via DeepDyve

Institutional subscriptions

Similar content being viewed by others

Reskilling and Upskilling the Future-ready Workforce for Industry 4.0 and Beyond

Exploring Human Resource Management Digital Transformation in the Digital Age

Work engagement and employee satisfaction in the practice of sustainable human resource management – based on the study of Polish employees

Availability of data and material.

'Not applicable' in this section.

Abbreviations

Analytic hierarchy process

Artificial intelligence

Analysis of variance

Chief Human Resources Officer

Consistency index

Curriculum vitae

Consistency ratio

Decision making

Faculty Development Programme

Hierarchical linear modelling

Human resources

Research and Development

Randomized index

Structural equation modelling

Search engine optimization

Triple bottom line

Technique for order preference by similarity

Maximum Eigen value

The normalized value of ith criterion for the jth alternative

The normalized value of jth criterion for the ith alternative

The number of alternatives for a certain MCDM problem

The number of criteria for a certain MCDM problem

Avinash Kapse S, Vishal Patil S, Nikhil PV (2021) E-Recruitment. Int J Eng Adv Technol (IJEAT) 1(4):82–86

Google Scholar  

Chahar B, Jain SR, Hatwal V (2021) Mediating role of employee motivation for training, commitment, retention, and performance in higher education institutions. Probl Perspect Manag 19(3):95

Chauhan P (2019) Impact of training and development programs on motivation of employees in “A” graded commercial bank of Nepal. Int J Res Anal Rev 6(3):850–857

Elsafty A, Oraby M (2022) The impact of training on employee retention: an empirical research on the Private Sector in Egypt. Int J Bus Manage 17(5):58–74

Article   Google Scholar  

Habibie M, Mustika I (2020) The effect of training on work motivation and its impact on employee performance (Case Study at BPJS Ketenagakerjaan Headquarters). Int J Innovat Sci Res Technol 5(7):51–57

Haryono S, Supardi S, Udin U (2020) The effect of training and job promotion on work motivation and its implications on job performance: evidence from Indonesia. Manage Sci Lett 10(9):2107–2112

Horodyski P (2023a) Recruiter’s perception of artificial intelligence (AI)-based tools in recruitment. Comp Human Behav Reports 10:100298

Horodyski P (2023b) Applicants’ perception of artificial intelligence in the recruitment process. Comp Human Behav Reports 11:100303

Jack Walker H, Feild HS, Giles WF, Bernerth JB, Short JC (2011) ‘so what do you think of the organization? a contextual priming explanation for recruitment web site characteristics as antecedents of job seekers’ organizational image perceptions. Organ Behav Human Decis Process 2(2011):165–178

Khan N (2018) Does training & employee commitment predict employee retention. In: International Conference on Management and Information Systems (Vol. 21, pp. 120–124)

Lee I (2005) The evolution of E-Recruiting. A content analysis of Fortune 100 Career Websites. J Electronic Commerce Organ 3(3):57–68

Lievens F, Harris MM (2003) Research on Internet recruiting and testing: current status and future directions. Int Rev Ind Organ Psychol 16:131–165

Lin CY, Huang CK (2021) Employee turnover intentions and job performance from a planned change: the effects of an organizational learning culture and job satisfaction. Int J Manpow 42(3):409–423

Martins D, Diaconescu LM (2014) Expatriates recruitment and selection for long-term international assignments in Portuguese companies. Tékhne 12:48–57

RoyChowdhury T, Srimannarayana M (2013) Applicants’ perceptions on online recruitment procedures. Manage Labour Stud 38(3):185–199

Ryu G, Moon SG (2019) The effect of actual workplace learning on job satisfaction and organizational commitment: The moderating role of intrinsic learning motive. J Workplace Learn 31(8):481–497

Saaty TL (1990) How to make a decision: the analytic hierarchy process. Eur J Oper Res 48(1):9–26

Sengazhani Murugesan V, Sequeira AH, Shetty DS, Jauhar SK (2020) Enhancement of mail operational performance of India post facility layout using AHP. Int J Syst Assur Eng Manage 11(2):261–273

Sigalingging H, Pakpahan ME (2021) The Effect of training and work environment on employee performance with motivation as an intervening variable At PT Intraco Agroindustry. South East Asia Journal of Contemporary Business. Econ Law 24(6):130–139.

Sharawat K, Dubey SK (2018) An approach to vendor selection on usability basis by AHP and fuzzy topsis method. In: Soft computing: theories and applications: proceedings of SoCTA 2016, vol 2. Springer, Singapore, pp 595–604

Steil AV, de Cuffa D, Iwaya GH, Pacheco RCDS (2020) Perceived learning opportunities, behavioral intentions and employee retention in technology organizations. J Work Learn 32(2):147–159

Sugiarti E (2022) The influence of training, work environment and career development on work motivation that has an impact on employee performance at PT. Suryamas Elsindo Primatama In West Jakarta. Int J Artif Intell Res 6(1.2).

Sumrit D (2020) Supplier selection for vendor-managed inventory in healthcare using fuzzy multi-criteria decision-making approach. Decis Sci Lett 9(2):233–256

Thompson LF, Braddy PW, Wuensch KL (2008) E-recruitment and the benefits of organizational web appeal. Comp Human Behav 24(5):2384–2398

Turan FK, Scala NM, Sacre MB, Needy KL (2009) An Analytic Network Process (ANP) approach to the project portfolio management for Organizational Sustainability. In: Proceedings of the Industrial Engineering Research Conference. Institute of Industrial Engineers.

Wadhawan S, Sinha S (2018) Factors Influencing Young Job Seekers Perception towards Job Portals. AIMS Int J Manage 12(3).

Weerarathna RS, Somawardana WSD (2021) Impact on training and employee motivation in an electricity company. Future Work, 497.

Zusman R, Landis R (2002) Applicant preferences for Web-based versus traditional job postings. Comput Hum Behav 18(3):285–329

Download references

Acknowledgements

The authors would like to express their gratitude to two wheeler Automotive Industries in Chennai, Tamil Nadu, India, for their invaluable assistance and cooperation. We greatly acknowledge Ms. Ruchi Mishra, Research scholar from NIT Karnataka, for editing this manuscript in better form.

There is no funding provided in this research.

Author information

Authors and affiliations.

Operations Management Division, Vellore Institute of Technology Chennai, Vandalur-Kelambakkam Road, Chennai, 600127, India

S. M. Vadivel

Vellore Institute of Technology Chennai, Vandalur-Kelambakkam Road, Chennai, 600127, India

Rohan Sunny

You can also search for this author in PubMed   Google Scholar

Contributions

S M Vadivel: Methodology, Writing—review & editing, Supervision. Rohan Sunny: Data Curation, Writing—original draft preparation.

Corresponding author

Correspondence to S. M. Vadivel .

Ethics declarations

Conflict of interests.

The authors declare that they have no competing interests.

Ethics approval and consent to participate

This manuscript has a research study involves human participants (Interview Candidates) for studying job portal evaluations in Indian two wheeler company running in Chennai, Tamil Nadu.

Consent for publication

‘ Not applicable’ in this section.

Additional information

Publisher's note.

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Vadivel, S.M., Sunny, R. Evaluation of online job portals for HR recruitment selection using AHP in two wheeler automotive industry: a case study. Int J Syst Assur Eng Manag (2024). https://doi.org/10.1007/s13198-024-02358-z

Download citation

Received : 04 December 2023

Revised : 07 April 2024

Accepted : 25 April 2024

Published : 12 May 2024

DOI : https://doi.org/10.1007/s13198-024-02358-z

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Analytical hierarchy process (AHP)
• Online job portals
• Automobile two wheeler industries
• Artificial intelligence (AI)
• HR recruitment
• Find a journal
• Publish with us
• Track your research

• Available Cars
• Testimonials

• Industry knowledge
• Ways to Get Education

Fundamentals of Automotive Branding. Кey concepts

Branding in the automotive world involves not only logos and slogans, but also defining values. They should be embodied by the brand. 

Brand values 

They define the brand’s identity and consumer perception. For example, brands can emphasize high quality, innovation, or environmental friendliness.

Brand identity 

This is a set of verbal and visual elements that define the look and feel of a brand. It includes:

• color scheme, 
• tone and style of communication.

The Impact of Branding on Consumers

Car users respond to the emotional stimulus provided by a brand. This is the basis for building strategies.

Self-determination

The choice of a car brand reflects the identity and lifestyle of the consumer. 

Emotional connection 

Identification with a particular brand can become a symbol of status, security, or luxury for the user. 

Influence on decision-making

A positive brand perception can convince a consumer to make a purchase, even if there are alternative options.

A positive emotional experience of using a car can increase consumer loyalty to the brand and lead to repeat purchases. 

Social media

Facebook, X, Instagram, or LinkedIn allow automotive brands to create communities. Understanding the specifics of each platform and adapting content to it are factors in a successful strategy.

Targeted advertising

Digital platforms allow you to fine-tune your advertising campaigns:

• by interest,
• by geography, etc.

Market Research. 

Students  study the main factors that influence the demand for cars:

• economic conditions, 
• technological innovations,
• changes in consumer tastes.

Strategies. 

Students study:

• pricing strategy, 
• product strategy, 
• advertising and promotion, 
• distribution and dealer network development. 

Digital technologies 

Learners study the role of online marketing, social media, and data analytics. They also explore how these technologies can be used to attract the target audience and increase car sales.

Press Releases

Cox automotive 2024 path to ev adoption study suggests electric vehicle consideration will surge in second half of decade.

Tuesday May 14, 2024

Article Highlights

• The switch is coming: Many EV Skeptics will become Considerers in the next three to five years.
• Consideration dips, even as EV demographics shift and become more mainstream.
• Dealers and automakers are fostering a more balanced, strategic relationship to accelerate EV adoption.

ATLANTA, May 14, 2024 – A second, significant wave of shoppers ready to consider buying an electric vehicle (EV) is poised to begin entering the market in the second half of the decade, according to the latest findings from the 2024 Path to EV Adoption Study by Cox Automotive. The findings indicate that nearly half of all vehicle shoppers in market today are not even considering an EV – a group the study identifies as Skeptics , shoppers who are only considering vehicles powered by traditional internal combustion engines.

But the Skeptics are coming, the study suggests. As technology improves, the U.S. charging network expands and prices moderate further, 54% of current Skeptics will become EV Considerers within three to five years. Within the next ten years, 80% of today’s Skeptics will be ready to consider an EV as more barriers fall.

Last year, EV sales in the U.S. market surpassed 1 million units for the first time, according to sales estimates by Kelley Blue Book, a Cox Automotive brand. Sales growth continues, albeit slowly, and electric vehicle prices continue to decline, thanks mostly to higher incentives and drastic price cuts by market leader Tesla. Still, EV consideration has waned in the U.S. after peaking in 2022. The latest study from Cox Automotive suggests the recent drop in consideration and slowing of EV sales growth is likely a shift in market dynamics as EV sales enter a new phase of development.

“While we’ve seen EV sales growth slow and consideration dip, we believe this is part of a normal growth curve and not the end of the story,” said Isabelle Helms, vice president of Research and Market Intelligence at Cox Automotive. “We remain bullish on the long-term future of EV sales in America, as many Skeptics today will be carefully considering an EV by the end of the decade. With more infrastructure, education, and technological innovation and improvements, we believe electric vehicle sales will continue to grow in the long term.”

Key findings from the 2024 Path to EV Adoption Study by Cox Automotive include:

EV Skeptics – The Next Wave Is Coming

The Cox Automotive 2024 Path to EV Adoption Study suggests a second wave of EV Considerers is preparing to enter the market. The study projects EV consideration will notably increase in three to five years, with 54% of current Skeptics expected to become active EV Considerers. Within 10 years, 80% of today’s Skeptics will have become EV Considerers. By that time, most vehicle shoppers – looking at both new and used vehicles – will be actively considering an electric vehicle.

As Skeptics slowly become Considerers, overall EV consideration in the U.S. is forecast to increase dramatically. Currently, only 45% of consumers in market for a vehicle within the next 12 months say they are considering an EV, down from last year when 51% of in-market shoppers were looking at EV options. In the 2026-to-2028 timeframe, research suggests that 79% of vehicle shoppers (both new and used) will be considering an electric vehicle. By 2033, 90% of all vehicle shoppers will have electric vehicles on their lists.

The expected shift is being driven largely by expectations for significant technological advancements and a notable improvement in the available EV charging infrastructure. Many current-market Skeptics are waiting for better range, longer battery life, improved reliability and overall technological advancements. Current-day Considerers often note “price” as the top barrier holding them back from purchase. On the other hand, Skeptics consider the “lack of charging stations” the top barrier.

Demographics Shift as EVs Become More Mainstream

The new research from Cox Automotive also suggests that the EV market is slowly becoming more mainstream. While current EV ownership is heavily tilted toward luxury and high-earning households, the study shows the EV market is casting a wider net, attracting Gen Z, multicultural and less-affluent shoppers. The market is also seeing a notable uptick in used EV consideration. In 2021, 62% of EV Considerers were looking at used EVs. Today, 77% are considering used electric vehicles.

While Tesla continues to be far and away the most considered EV maker, many mainstream brands are making inroads. The new report shows that electric vehicles from Toyota, Hyundai and Kia have experienced notable increases in awareness and consideration since 2021. Meanwhile, Ford continues to be the most-considered EV maker not named Tesla. Still, apart from Tesla, a majority of vehicle shoppers are not even aware of EV offerings from other major automakers, the Cox Automotive study reveals, suggesting many shoppers are not researching EV products. For example, only 33% of vehicle shoppers – consumers in market for a product – have awareness of EV offerings from Nissan, a brand that helped pioneer EV sales in the U.S. market.

A More Balanced Partnership Between Dealers and Automakers

The new study from Cox Automotive also documents the improving relationship between dealers and automakers when it comes to selling and servicing EVs, a partnership that has become more strategic and balanced since 2019.

Dealerships report that they have enjoyed increased support in marketing, sales and service since 2019 but express a need for additional resources beyond training in selling EVs. More EV incentives are high on their list, as are programs like free maintenance and funds for additional advertising. Dealers also feel the urgency to sell: 65% of dealers report feeling pressure from their automakers to hit EV sales targets, up from 39% in 2019. Luxury dealers are more likely to feel higher pressure.

Still, the research also demonstrates the level of commitment that dealers have to selling EVs. Among franchised dealers, 86% say they are likely or somewhat likely to continue making investments required by the automakers. With this commitment to continue investing in EV infrastructure, dealers are signaling a collaborative effort to accelerate EV adoption.

Background and Methodology

The 2024 Path to EV Adoption Study by Cox Automotive assessed the current landscape and prospects of electric vehicle (EV) adoption in the United States. The research was undertaken in Q1 2024 and included a nationally representative sample of 2,557 American vehicle shoppers and 526 dealers to understand their perceptions, preferences, and attitudes toward electric vehicles. The methodology was structured to capture a broad spectrum of demographic variables, including age, income, geographic location, and current vehicle ownership, to ensure the findings accurately reflect the diverse landscape of the American consumer base.

The findings from the 2024 Path to EV Adoption Study provide a comprehensive overview of the current state and future trajectory of EV adoption, offering valuable insights for consumers, dealers, and automakers alike as they navigate the transition toward a more sustainable automotive ecosystem. Download the study summary and an infographic .

About Cox Automotive

Cox Automotive is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, auto manufacturers, dealers, lenders and fleets. The company has 29,000+ employees on five continents and a portfolio of industry-leading brands that include Autotrader®, Kelley Blue Book®, Manheim®, vAuto®, Dealertrack®, NextGear Capital™, CentralDispatch® and FleetNet America®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $22 billion in annual revenue. Visit  coxautoinc.com or connect via  @CoxAutomotive  on X,  CoxAutoInc  on Facebook or  Cox-Automotive-Inc  on LinkedIn.

Media Contacts:

Mark Schirmer 734 883 6346 [email protected]

Dara Hailes 470 658 0656 [email protected]

Sign up here to receive bi-weekly updates on news and trends dominating the automotive industry.

@coxautomotive, related content.