Intensifying competition, dynamic consumer requirements, and volatile markets are compelling auto OEMs to differentiate themselves through novel features in the areas of safety and advanced driver assistance systems (ADAS), according to Frost & Sullivan. The market is gradually changing to focus on comfort, convenience, handling, sustainability, smart mobility, as well as vehicle versatility and utility.
“Multiple airbags and driving aids such as parking sensors and brake assist are expected to be standard features across all cars sold in Latin America (LATAM) over the next three to five years,” said Frost & Sullivan Mobility Industry Analyst Thales Jurado. “Emphasis on these new technologies, services and features will provide OEMs with greater opportunities to capture market share and directly impact future product roadmaps and vehicle developments."
Frost & Sullivan finds that while innovative features are being rolled out at a brisk pace, OEMs will be challenged to offer them at affordable rates. Furthermore, they need to enhance consumer knowledge, customization and customer acceptance of premium in-vehicle features to truly tap the market potential.
“The three key strategies for OEMs with regard to feature selection and offering are ‘feature cascade’, ‘flagship model’ and ‘customer customization’,” noted Frost & Sullivan Mobility Research Manager Yeswant Abhimanyu. “As ‘customer delight’ is becoming an integral part of an OEMs' customer acquisition strategy, offering high levels of customization will lead to winning mind and market share.”
Features such as ambient vehicle lighting and heated/ventilated seats are currently optional, but these convenience features in seating, lighting and sensing will drive growth for OEMs. Meanwhile, transitional features such as smart keys and connected infotainment are fast becoming must-have features.