Intensifying competition, dynamic consumer requirements, and volatile markets are compelling automobile original equipment manufacturers (OEMs) to differentiate themselves through novel features in the areas of safety and advanced driver assistance systems (ADAS). The market is gradually altering with participants' keener focus on comfort, convenience, handling, sustainability, smart mobility, as well as vehicle versatility and utility.
“Multiple airbags and driving aids such as parking sensors and brake assist are expected to be standard features across all cars sold in Latin America (LATAM) over the next three to five years,” said Frost & Sullivan Mobility Industry Analyst Thales Jurado. “Emphasis on these new technologies, services and features will provide OEMs with greater opportunities to capture market share and directly impact future product roadmaps and vehicle developments."
Latin American Advanced Automotive Features Market and Optional/Standard Strategies of OEMs, Forecast to 2022 is part of the Automotive Business Strategy & Innovation Growth Partnership Subscription. It finds that while innovative features are being rolled out at a brisk pace, OEMs will be hard pressed to offer them at affordable rates. Furthermore, they need to enhance consumer knowledge, customization and customer acceptance of premium in-vehicle features to truly tap the market potential.
Some of the companies that already offer holistic, next-generation vehicle features include Ford, BMW, Audi, Daimler, VW, and General Motors, while the rest are still trying to catch up.
“The three key strategies for OEMs with regard to feature selection and offering are ‘feature cascade’, ‘flagship model’ and ‘customer customization’,” noted Frost & Sullivan Mobility Research Manager Yeswant Abhimanyu. “As ‘customer delight’ is becoming an integral part of an OEMs' customer acquisition strategy, offering high levels of customization will lead to winning mind and market share.”
Features such as ambient vehicle lighting and heated/ventilated seats are currently optional, but these convenience features in seating, lighting and sensing will drive growth for OEMs. Meanwhile, transitional features such as smart keys and connected infotainment are fast becoming must-have features.
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Latin American Advanced Automotive Features Market and Optional/Standard Strategies of OEMs, Forecast to 2022 / K126-18