Monday, 23 August 2021 13:19

The great challenges of the automotive industry GfK

Written by Evelyn Alas

The automotive industry in Mexico faces several challenges, among them, the lack of consumer confidence and the concerns generated by the pandemic, which is related to the information reported by INEGI that points out that from December 2018 to May 2021 the sale of light cars in Mexico fell 39.8%, according to the "Registro Administrativo de la Industria Automotriz de Vehículos Ligeros.

Additionally, automakers have had to deal with different threats to vehicle production, such as the shortage of semiconductors, the rising price of steel, as well as the increasing pressure from the United States to renew collective bargaining agreements between unions and companies in the sector. As if the above were not enough, budget revisions are the order of the day, as well as the demand to achieve results in the short term, affecting individual and corporate automobile purchases.

It is important to highlight the importance of the automotive industry, since in Mexico it represents 3.8% of the national GDP and 20.5% of the manufacturing GDP, more than any other sector, and 980 thousand direct workers and 3.6 million indirect workers depend on the industry, based on data from the Asociación Mexicana de la Industria Automotriz (AMIA).

The actions to be taken by automotive manufacturers and their marketing departments are not so simple, and generally in this path they ask themselves questions such as: should we build from the parent brand or from the models? what attributes are the most relevant to improve the opinion and consideration of my brand and models? do I bet on functional or personality benefits? the key answer that will help them find the perfect balance between these factors is mainly found in reliable and actionable information, which will give them the key to develop better marketing and communication strategies according to the objectives of each brand.

Notwithstanding the above, after the hard hit that the COVID-19 pandemic had on car sales in Mexico during 2020, April 2021 sales numbers showed an exaggerated growth, with an increase of 139.4 percent, according to the same INEGI report.

"This is a key moment for car brands in which they need to concentrate on getting to know their closest specific prospects better; that is, the real potential buyers and not the general public in order to focus their efforts on efficiently converting them to purchase, therefore, GfK is supporting several manufacturers in this industry to make more informed decisions in their communication strategies and tactics both in brand building and in activating demand in potential customers in different segments of the automotive world", said Enrique Gonzalez, Sales Director of GfK Mexico.

The aforementioned reflects that each area within the automakers has an important challenge ahead. From the Marketing trench, it is necessary to understand and communicate assertively to consumers, that is, to all those who are really thinking about buying a car, that it is a good time to invest in a car of their favorite brand.

"At GfK we have years of experience researching the automotive sector, which allows us to understand the needs of our customers, for this reason we developed a syndicated tracking among potential buyers, which allows us to offer the answers that those who manage car brands are looking for. For example, we know that the most important drivers of opinion and brand consideration, which should be taken into account to increase persuasion, are related to safety, quality and performance, according to Q4 data from GfK's Brand Health Automotive Tracker", said Ricardo Barrueta, General Director of GfK Mexico (see image 1).

Although brands from the United States and Europe are better known than those from Asia, the latter enjoy a better conversion rate to opinion and consideration, according to Q2 2020 to Q1 2021 data from GfK's Brand Health Automotive Tracker (see image 2).

GfK shares with its clients the key to improve strategies and focus their marketing efforts: valuable information according to consumer perception. GfK's extensive automotive experience and suite of solutions allows them to identify, understand and maximize the opportunities that each company has, providing them with a clear view of how potential car buyers value their next purchase and how they compare to competing brands and, more importantly, why consumers feel that way.