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Turbocharge Auto Sales with Advanced Analytics

Andrej Levin Parmeet Grover Karen Lellouche Tordjman Alfred Wiederer Alex Melnik Jonas Hiltrop

Automotive companies find themselves in a challenging environment as emerging technologies are reshaping the driving experience and drivers’ expectations, and new competitors are changing the industry’s value chain and sources of strategic advantage.

Advanced analytics (AA) is a powerful tool for automotive OEMs and dealer groups in this environment to boost sales and improve operating margins. While most automotive OEMs and dealer groups have what is needed to start developing sophisticated AA capabilities, few players are leveraging AA to its fullest.

In order to successfully transform into bionic organizations that merge AA and human capabilities, OEMs and dealer groups must overcome remaining obstacles by securing the right data, making smart investments, and devoting sufficient resources and leadership focus.

Based on our study of more than 200 AA uses cases, we have identified key enablers and recommend three specific AA applications—micromarket intelligence, inventory optimization and demand planning, and rebate steering—in order to kick start the journey.