Here's how you can select the right target market for your automotive engineering business.

Utilize market research reports and industry publications to understand the size, demographics, and needs of different automotive segments (OEMs, Tier 1 suppliers, aftermarket companies). Consider tools like PEST analysis (Political, Economic, Social, Technological) to identify external factors influencing your target market. Research the challenges faced by different players in the automotive industry. Are they struggling with design optimization, powertrain electrification, or compliance with new regulations? Focus on the pain points where your engineering expertise can offer the most value.

Identify target segments for the outside sales team by analyzing market data, demographics, and historical sales performance while ensuring alignment with the organization's strategic priorities. Gain a deeper understanding of customer needs and preferences through empathy interviews and customer journey mapping exercises. Prioritize specific segments or personas based on this insight. Leverage inbound marketing and lead generation tactics to attract qualified leads that fit the identified target criteria, using data analytics and lead scoring techniques to prioritize leads based on their likelihood to convert into customers.

Firmographics: Industry: Segment by the specific industries you cater to, like luxury car manufacturers, electric vehicle startups, or heavy truck producers. Each industry has unique engineering challenges. Company Size: Target large OEMs (Original Equipment Manufacturers) with extensive resources or smaller firms needing specialized engineering solutions. Project Needs: Project Stage: Segment by whether companies need help with concept development, prototyping, or production engineering. Technical Expertise: Cater to companies with in-house engineering expertise needing specific support or those lacking the in-house capabilities and requiring a full-service solution.

Traditional Automakers: Focus on value propositions like: Faster Time-to-Market: Offer expertise in efficient design processes and prototyping to get vehicles on the road quicker. Compliance & Safety: Highlight your ability to navigate complex regulations and safety standards for new technologies. Cost Optimization: Emphasize your skills in reducing development costs through material selection and lean manufacturing processes.

It appears the market has shifted towards highly specialised outfits (mostly Tier 1s) that are looking to disrupt a very niche area of the industry. A series of insolvencies and financial struggles for newly established OEMs suggest that this sector may be too crowded or the marginal benefits of a new product don't generate exponential growth required to a new car company to succeed. Perhaps, we are yet to see a product that differentiates itself enough to be in a league of its own.