Closing the feedback loop in Indian Auto Component space

?Electrification and Startups: OEMs Feeling Threatened

During a recent meeting with the purchase manager of a significant Indian OEM, they were evaluating their longstanding partnership with a major component supplier due to a significant mismatch in their respective technology roadmaps. The Indian automotive industry is undergoing rapid transformation, with new technologies such as electromobility and self-driving playing out strongly, along with emerging trends like SUVs, premiumisation, and safety. As a result, OEMs are feeling the pressure to incorporate disruptive technology. For instance, the two-wheeler OEM segment is now facing competition from OATS (Ola, Ather, Tork, Simple), who have emerged as credible competitors of BET (Bajaj, Enfield and TVS) by using the cues of disruption in technology in the form of electromobility and trends like premiumisation. The upstarts have created OEM brands from the ground up, bypassing the years of brand building done by the incumbents. We can draw parallels from what is happening globally, with examples like Tesla and BYD upstarts taking on American and Japanese OEM behemoths.

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New Differentiator: Strategic Alignment

In this disruption, the first casualty is the long-standing OEM component supplier relationship. Incumbent OEMs are questioning the sacrosanct thread of relationships that existed for nearly half a century. They now want suppliers to align with their strategic goals. Gone are the days when all one needs to deliver were components at the lowest cost and highest quality, staying insulated from the outside world. The quality at the lowest cost has become a necessity rather than a differentiator. The differentiator now is strategic alignment. The test is whether all the supplier's departments are aligned strategically with the OEM. The expectation is that all parts of the supplier ecosystem need to work like clockwork, creating solutions to provide the OEM with a differentiator in their product roadmap. In this milieu, there will be few winners and many losers. The winners will have an outsized role due to their alignment with the OEMs.

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The Key to Understanding Customer Experience: Customer Satisfaction Study

Our proprietary Customer Engagement Scores help you understand where your relationship stands with your customers and where it needs to be aligned. It provides a solid compass to improve the relationship with OEMs and your internal teams. Using a scientifically developed methodology, we aim to transform your Customer Satisfaction Survey from a mere checkbox filled through email to a powerful tool that offers valuable insights into your customer's strategy. We can then provide workable recommendations to improve alignment and effectively meet their needs.

DM me if you are looking to understand what your customer is thinking.