HOME Research Insight The Key Strategy Adopted by Major Players to Gain Traction in the Market is New Product Development



The Key Strategy Adopted by Major Players to Gain Traction in the Market is New Product Development


The demand for automotive transmissions is rising, owing to the increasing customer preference for enhanced driving experience and smooth gearshift. OEMs are compelling automotive transmission manufacturers to focus on manufacturing advanced transmissions and components using lightweight materials with improved mechanical strength. The automotive transmission market is projected to grow at a CAGR of 5.89% during the forecast period, to reach USD 196.20 Billion by 2021. Market growth is driven by factors such as the growing demand for comfort and safety in vehicles and increasing need for better acceleration, traction, and towing capabilities in vehicles.

The key strategy adopted by major players to gain traction in the market is new product development. This strategy accounted for approximately 57% of all the strategies adopted by companies. For instance, Continental AG (Germany) has developed continuously variable automatic transmissions to cater to urban transport requirements. This development would help Continental AG to expand its market share in the CVT transmission segment, thereby improving their overall revenue flow. Additionally, Getrag Transmission Co., (Canada) Ltd began production of its third generation dual-clutch transmission 7DCT300 at its Nanchang Plant (China). This transmission is designed for the mid-range and compact car segments. It is compatible with all-wheel drive applications, as well as fuel-saving functions such as engine start-/stop and advanced sailing, with or without engine stop. The second most widely followed strategy is supply contracts. For example, Magna International Inc. (Canada) has supplied drivetrain technology for the Ford S-MAX. This new technology is equipped with Eyries electronic vision system along with a transmission which is manufactured by Getrag Transmission Co. Other companies that have adopted this strategy include BorgWarner Inc. (U.S.), GKN plc (U.K.), Magna International Inc. (Canada), and Aisin Seiki Co., Ltd (Japan)

The automotive transmission market is dominated by a few global players, and comprises several regional players. Aisin Seiki is a leading player in the automotive drivetrain market. It specializes in the manufacture and sales of automotive parts (drivetrain, body, brake and chassis, engine, and information technology-related products). The company has a wide product portfolio for the drivetrain segment. Aisin Seiki has set strategic goals for ten years in its Aisin Group Vision 2020 plan, under which the company incorporates objectives such as developing products that support growth, strengthening competitiveness through innovation, and building a global business structure. To achieve these targets, the company is expanding its presence in various regions to reduce its dependency on the Japanese market.

BorgWarner Inc. was founded in 1928, and is headquartered in Michigan, U.S. It is a leading supplier of drivetrain- and engine-related products. The company’s product portfolio includes AWDs, automatic transmissions, and dual clutch transmissions. It caters to various market segments, including light vehicles, medium and heavy-duty, off-highway, and aftermarket.

BorgWarner is present in 19 countries, with 74 locations to support manufacturing and R&D activities. The company has approximately 30,000 employees across the globe, as of 2016.  It has a diversified customer base and provides products and services to global OEMs such as General Motors (U.S.), Chrysler (U.S.), Daimler (Germany), Volkswagen (Germany), Audi (Germany), Tata Motors (India), and PSA (France).

Related Reports:

Automotive Transmission Market by Type (Automatic, Manual, AMT, DCT, CVT), Vehicle type (Passenger Car, LCV, HCV, & Electric Vehicle), Number of Forward Gears, Fuel, & Region (Asia-Pacific, North America, Europe, RoW) - Global Forecast to 2021

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