The change of way of thinking of segmentation and future trend in the globalizing car market

Publication Type:

Unpublished

Source:

(2018)

Abstract:

The change of way of thinking of segmentation and future trend
in the globalizing car market

There are many cars having various features in each region. Car makers have been matched with landform and lifestyle in each region and cars has been sold to each region before. For example, the safety in Europe and the size of displacement in North America have been attached importance the making of cars.
After that, the regulations of safety regulation “Euro NCAP” and regulations on exhaust gas “Euro 6” were introduced and autonomous driving system were promoted. And the way of thinking of segmentation of cars.
Therefore every car maker made up alliance and shared auto parts to reduce the budget of their production and development of new car. In Japan, the three car makers, Toyota, Nissan and Honda, are monopolizing automobile market. It may be said that automobile market is oligopoly if seen globally. In present automobile market, too small unit of configuration are only remaining. And the corporate profit of Daimler has been going down since 2007. However, Daimler made an alliance with Renault-Nissan in 2010. It has been raising corporate profit in every year since. But present Daimler has similar parts in cars of from A class to S class. Like this even if sharing auto parts succeed, it is fairly difficult that they provide one most suitable to each region. It also may be said that contents of cars are similar because suppliers of auto parts are limited. So it is issue that how they make difference in each car. But there are examples like Japan, which doesn’t like particular design of cars. How to close the gap between regions is a problem for the automobile market that wants to promote globalization.
Therefore, we think it is related to the specification and size, the combination of auto parts and the delivery of cars by each region.
We give an example “engines.” After Volkswagen emissions scandal in 2015, similar suspicions of each car makers were surfacing one after another in the world. Hence, around Europe, avoiding diesel engines and downsizing of engines are being the mainstream. Fuel efficiency will be good by reducing the number of cylinders and displacement of engines and output will be made up by turbo. Europe shows that each car makers targets cars of 4 cylinders and 1600cc displacement with turbo as main force. Each supplier of auto parts tries to develop engines to cope with current problems of cars. The difference of concept of combustion has made engines various injector’s form and shape. The most auto parts supplier “Bosch” is independent company, so it can contact with all car makers. It’s a problem here that how to put the international competitiveness in a delivery of auto parts. We will compare Europe with Latin America and ASEAN Thailand about delivery of auto parts.
In this research, we suggest what each region needs in marketing in car markets. And we think about a marketing strategy every region based on statistical “Maharanobis” to analyze the relation between segmentation of cars and deliveries of auto parts.

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