This is an exclusive preview of the 2016 edition of Mexico Automotive Review. If you want to get all the information, plus other relevant insights regarding the Mexican automotive industry, get your copy of Mexico Automotive Review 2016.
Article based on exclusive interview with Javier Romero, Partner and Managing Director for The Boston Consulting Group (BCG).
Q: What are the main services that BCG offers its Mexican automotive clients, and how can its interdisciplinary team offer an integral solution?
A: BCG is a strategy consulting firm that helps companies to make better decisions and improve their operations. Our work with OEMs has been mostly focused on developing the management of their production facilities through better asset utilization and improved efficiency. In addition, BCG helps its clients with aftermarket and commercial operations in accordance with local conditions. In terms of Tier 1 suppliers and aftermarket players, we help them define their strategy regarding local and international market share growth, as well as evaluating the feasibility of product expansions and developing their distribution channels. We have had presence in the Mexican market for close to 40 years, at first running our local operations directly from our US offices. In 1993, we finally opened our first Mexican office in Monterrey, expanding to Mexico City three years after that. Nowadays, our local offices employ close to 100 consultants, with five Mexican BCG partners supporting us. Our partners are divided into different areas of specialization, including financial services, consumer goods, and industrial goods, while our team of consultants has different types of functional expertise that range from investment decision to manufacturing operations.
Q: Based on BCG’s broad market knowledge, what have you identified as the biggest trends in the automotive industry?
A: There are two main trends that relate to each other. The first refers to the way in which drivers use their vehicles and, in that sense, we believe that car sharing will become a rising trend over the next five years. Other trends will include any alternative that removes the burden of purchasing a vehicle, disassociating car usage from ownership. Meanwhile, the second trend shows that personalization of privately owned vehicles will increase considerably, as customers will be able to add or remove specific components from cars, enhancing their driving experience. These include not only the vehicle’s features, but also size, shape, and functionality. Moreover, the number of technological components will be customizable, which will enable drivers to monitor on-the-road behaviors, such as music preferences or frequent routes and destinations. In terms of commercial vehicles, their personalization will refer to freight shipping and volumes, while also taking into consideration their size and shape.