Hyundai Reveals New Technology For Hearing-Impaired Drivers

• Hyundai Motor Company has developed a new technology which makes life easier for people with a hearing impairment.
• The technology offers drivers with a hearing impairment a safe and comfortable driving experience and provides them with the means to interact with their external environment.
• Hyundai has devised a means wherein people with a hearing impairment can maximize their sense of sight and touch.
• The company has created a form of communication which translates internal and external sounds to tactile and visual elements.
• This technology uses AI to analyze sound patterns. It also uses two separate driver-assist systems, which are Audio Visual Conversion (AVC) and Audio Tactile Conversation (ATC). These two systems work together to help hearing-impaired people better familiarize themselves with the world around them.

Honda announces global automobile manufacturing restructure

• Honda has announced that they will organize their global manufacturing network differently.
• This restructuring comes as Honda focuses on electric cars, in response to the groundbreaking changes in the global automotive industry.
• As a result of the challenges that come with electrification, Honda will change its global manufacturing operations, and focus on company activities in regions where it anticipates high production volumes.
• The company will shut Swindon, its vehicle manufacturing plant in the UK, in 2021 as a part of this restructure.

BMW's announcement on First U.S. Collaboration Lab

• The BMW Group Financial Services in the U.S. has announced the Collaboration Lab and invited startups to participate.
• The startups will participate in a ten-week lab at BMW Financial Services’ offices in Hilliard, Ohio, aimed to help them further develop their ideas together with leading subject matter experts in the automotive and financial sectors.
• The Collaboration Lab accelerator program provides entrepreneurs, start-ups, and small businesses in fintech and other fields with the opportunity to partner with BMW Group Financial Services.
• This would be to develop, and then realize, "innovative solutions and game-changing new technologies that can ultimately benefit consumers, dealers, and partners."
• The companies selected will work in the categories digitizing the customer journey, building a blockchain strategy, and data analytic and insight.
• Digitizing the Customer Journey: carLABS has created a conversational AI-powered platform for automating and enhancing sales and marketing in the automotive vertical. It will offer car buyers an easier shopping experience that notably increases conversions and returns on marketing spend for car sellers.
• Building a Blockchain Strategy: Supermoney is developing a unique digital wallet that allows in-store and online customers to pay with a simple QR scan. The product runs on a system of smart contracts that effectively manage counterpart risk, protecting both buyer and seller. Bloom uses public-private key encryption underpinning blockchain technology to verify customer identity, a technology also used to certify the accuracy of credit history without storing customer raw data on servers.
• Data Analytic and Insights: Omniscience Corp. is working together with finserv and insurance firms on solutions related to underwriting and capital modeling and is working to scale their analytic efforts on real-world data. Motion Auto Insurance is modern insurance for the modern world and regards fully programmatic, embeddable, insurance as a service delivered from directly inside the customer's mobile app for gig/sharing economy, new modes of vehicle ownership, and autonomous driving technology.

Volkswagen usage of 3D printing

• Volkswagen is the first manufacturer using the latest 3D printing technology: the "HP Metal Jet."
• The biggest advantage of this technology is that it improves productivity by fifty in comparison to other 3D printing methods and depending on the component.
• Three-dimensional printing can be used for mass production in the automotive industry.
• Along with HP and GKN Powder Metallurgy, Volkswagen is, therefore, pressing ahead with the development of the technology for mass production.
• By next year, GKN intends to create a process chain for automotive production together with Volkswagen.

Ford to use graphene parts in its vehicles

• Ford announced that it will be using graphene parts in its vehicles by the end of 2018, starting with the Mustang and F-150.
• Graphene is a material made from a hexagonal structure of carbon atoms and was first isolated in 2004. It is about 200 times stronger than steel but lighter and flexible. It is a good choice of an electrical conductor and an insulator of sound.
• Ford is aware of the difficulties of graphene manufacturing and use, but is confident with the partnerships made and has determined how to make use of graphene in certain components in order to strengthen and lighten them, as well as reduce noise.

Research Strategy

TOP TEN GLOBALLY BY number of units sold (2018)

• Volkswagen Group — 10.81 million
• Toyota Group — 10.435 million
• Renault-Nisssan Alliance — 10.346 million 
• General Motors — 8.643 million  
• Hyundai-Kia — 7.416 million 
• Ford Group — 5.632 million
• Honda Group — 5.234 million 
• FCA — 4.825 million
• PSA — 4.084 million
• Suzuki — 3.306 million 

TOP TEN GLOBALLY BY number of units sold (2017)

• Volkswagen Group — 10.603 million  
• Toyota Group — 10.316 million 
• Renault-Nisssan Alliance — 10.256 million 
• General Motors — 8.999 million 
• Hyundai-Kia — 7.302 million  
• Ford Group — 6.283 million  
• Honda Group — 5.264 million  
• FCA — 4.837 million 
• PSA — 4.245 million  
• Suzuki — 3.174 million

BRIEF SUMMARY OF TOP PERFORMING VEHICLE CATEGORIES

• Volkswagen features two main categories: passenger cars and commercial vehicles. 
• In 2018, the passenger car business category was the top performing at 10,206 vehicles sold. The commercial vehicles segment came second, with 694 units sold.
• In 2017, the passenger car business category was the top performing at 10,077 vehicles sold. The commercial vehicles segment came second, with 700 units sold.

•  SUVs is the best performing segment for Toyota by number of sold units, followed by the compact cars and trucks.

• The best performing segment for Renault is the Light Commercial Vehicles. The total sales of Light Commercial Vehicles (LCVs) rose 13.5% to 2 million units in 2018.
• The cumulative sales of electric vehicles was estimated to be 725,000 electric vehicles.

• The best performing segment is the utility vehicles segment. The total sales of all utility vehicles, including large SUVs, totaled 1,295,700, up 7 percent from 2017.
• The second most performing category is the pickup trucks segment, which sold 973,463 new units in 2018.

• The best performing segment of the company was the Small PC, selling 2,490 units in 2018. It was followed by the RV segment at 1,357 units, the Mid-Large PC sector with 764 units sold and the CV segment with 303 units.

• Ford classifies its vehicles in three groups/categories: Ford brands, Ford-Lincoln brands, and Lincoln brands.
• The performance of the categories is grouped by the number of dealerships.
• The top performing category was the Ford Brand, with 10,345 dealerships, while Ford-Lincoln had 820 dealerships and Lincoln had 263.

• The best performing category for Honda is their automobile segment, with 3,683,000 units sold in fiscal year 2017, giving a revenue of over 10 Billion yens.
• Honda’s consolidated unit sales of motorcycles and all-terrain vehicles (ATVs) in fiscal year 2017 totaled 11,237,000 units, generating 1.716 Billion yens. 

• The best performing segment for Fiat is their SUV and crossover segments, contributing 11.6 percent to the total sales of the company.
• The second most performing category is the pickup trucks segment, which sold 1500 new units in 2018.

• The best performing segment of the business is the SUV segment, which accounted for 28% of the company sales or 609,300 units sold.

• Suzuki has three main categories: automobiles, auto cycles, and marine vehicles.
• The best performing category is the automobile segment, featuring a global production of 3,338,000 units.
• Motorcycles (including ATVs) is the second best-performing segment for Suzuki with 1,580,000 units sold.

Research Strategy:

SAGE AUTOMOTIVE

• Sage Automotive is headquartered in Greenville, South Carolina. It manufactures high-performance automotive interior fabric.
• Sage Automotive is committed to sustainability, has a global footprint, a good understanding of its consumers, world-class manufacturing, engineering, and design capabilities.
•  Chrysler, Daimler, Fiat Automobiles S.p.A., Ford Motor Company, General Motors Company, Honda Motor Co., Hyundai Motor Company, Jaguar, Kia Motors, Mini, Nissan Motor Company, Suzuki Motor Corporation, Toyota Motor Corporation, Volvo Car Corporation, and Volkswagen AG are some of its clients.

BORGERS AG

• Borgers AG is headquartered in Bocholt, Germany and manufactures absorbers, carriers, insulations, trims, and decor for automobiles.
• It develops and manufactures acoustically efficient, lightweight, and high-quality components. It has a strong presence in Europe.
•  General Motors, Volvo Trucks, Toyota, Volvo Car Corporation, Volkswagen, Ford, Renault, Audi, Mercedes, BMW, Opel, Skoda, Peugeot, Nissan, and Rolls Royce are some of its clients.

RESEARCH STRATEGY

Global Automotive Interior Materials: Top Global Players Comparison

• As per publicly available information, we provided the needed information of the global automotive interior material companies including Lear Corporation, Adient PLC, and Grupo Antolin in columns C-E of this attached spreadsheet.

Research strategy:

FINDINGS

Lear Corporation (US)

•  Website Link 

• Revenue: $20.7 billion 

• Market Share: 44.39%

Adient PLC (Ireland)

•  Website Link 

• Revenue: $17.44 billion 

• Market Share: 37.4%

Grupo Antolin (Spain)

•  Website Link 

• Revenue: $4.27 billion 

• Market Share: 9.16%

Sage Automotive Interiors Inc. (US)

•  Website Link 

• Revenue: $750 million 

• Market Share: 1.6%

Borgers A.G.

•  Website Link 

• Revenue: $112 million 

• Market Share: 0.24%

YOUR RESEARCH TEAM CONDUCTED THE FOLLOWING RESEARCH:

FINDINGS

Market Size and Growth

• The global automotive interior materials market is worth approximately $46.63 billion in 2018.
• This figure is expected to have a growth rate of 3.5% in the next 3-5 years. With this growth rate, the market size is seen to rise to $55.41 billion by the year 2023.
• The automotive industry boom in developing economies us seen to have a major impact to this growth rate.

GROWTH FACTORS

• The market's growth can also be attributed to the vendors who are implementing core and non-core strategies to increase their reach in emerging regions such as Brazil, India, Thailand, and China.
• Globally, Asia Pacific is the leading region in this market based on volume and value. The region is seen to hold this leading status well into 2023 with India as the leading country in the region.
• The South American market is also seen to experience a marked growth in the industry due to its booming economy.
• Meanwhile, the European and North American markets are seen to have relatively slower growth rates because of their maturity levels.
• Among the materials used in the automotive market, polymers are the dominant ones since there is a rise in the need for long-lasting and light interior parts. Some of the interior components made of polymers are the door panels, consoles, dashboards, and others.
• The use of this material is also driven by the goal of automotive firms to reduce the weight of the vehicles. The lesser the vehicle weighs, the lesser the carbon emissions.
• In terms of vehicle types, passenger vehicles are the largest recipients of automotive interior materials due to the burgeoning demand in developing countries.
• Even with a positive growth rate, some factors may impede the pattern. The supply of leather, one of the materials used in the market, might be heavily impacted by wrong practices such as unacceptable effluents' disposal that is harming the environment.

KEY PLAYERS

• Some of the key players in the industry are the following: "Toyota Boshoku Corporation (Japan), Lear Corporation (US), Toyoda Gosei Co., Ltd. (Japan), Adient PLC (Ireland), Faurecia S.A. (France), Grupo Antolin (Spain), and Sage Automotive Interiors Inc. (US)."
• These major players are implementing various strategies to increase their market shares. Their growth approach includes "expansions, mergers and acquisitions, partnerships and agreements, and new product developments."

YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY: