Analysis of Passenger Vehicle Pricing Strategies in Mexico, 2017

  • ID: 4495396
  • Report
  • Region: Mexico
  • 101 pages
  • Frost & Sullivan
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Macroeconomic Landscape, Trade Structure, Technological Roadmap, and Performance of Local Markets Driving Local Automotive Price Increase

FEATURED COMPANIES

  • Ford
  • GM
  • Honda
  • Hyundai
  • KIA
  • Mazda
  • MORE

The Mexican market has witnessed a generalized increase in vehicle prices across all OEMs and automotive segments in the recent past. This study aims to analyze this phenomenon, taking into account the 2012-2017 period.  The historic entry-trim and premium-trim prices for the 68 most commercialized passenger vehicles of each segment (covering A to D, 3 SUV sub-segments, and 3 pick-up sub-segments) within the top 10 selling OEMs in the Mexican market were registered to comprehend the specific pricing evolution trends.

The first section of the study presents the scope, including the key factors impacting vehicle price structure in the Mexican market for the present period and trends towards 2023, to build a strong macro-framework for the following micro-economic analysis. Key indicators have been considered, such as the evolution of the Mexican GDP, GDP per capita, inflation rates, unemployment and exchange rate with the US dollar, and a comparison with the general sales performance of the automotive market, to identify concomitances. A briefing on the actual state of debate on hot topics in Mexican policies impacting OEM pricing strategies has been provided, specifically the uncertainty towards NAFTA’s trade structure continuity and the new fuel price liberalization policy. Furthermore, taxation structure over the automotive sector and current and future EPA/EURO emission norms and regulations ratified by the Mexican state have been discussed. The impact of the new technological roadmap for the automotive industry, with key vehicle customization features, technological packages, and generational uplifts, have also been analyzed, focusing on the impact on pricing structure.

The second and third sections of the study focus on specific vehicle pricing dynamics - by vehicle segment and OEM. A picture of the pricing competitive landscape in 2012 and 2017 has been presented for each segment, identifying key competitive participants and their competitive evolution in the given period. The section also throws light on the emergence of new dynamic segments, such as A-, B-Hatch, B/C SUV, and mini Pick-ups, with an expanding offer and wide price ranges. OEM-specific analysis covers a pricing picture of selected portfolio for both 2012 and 2017; annual pricing evolution is provided for both entry-trim and premium-trim values. This way, different OEM pricing strategies are identified for the same given period, such as market leader Nissan’s gradual approach, GM’s critical increase in selected portfolio prices towards 2016-2017, VW’s decreasing prices in selected segments, or the newly-introduced-in-the-Mexican market KIA’s successful reduced portfolio approach.

Key Issues Addressed

  • How has vehicle pricing changed in Mexico from 2012 to 2017?
  • How are OEMs competing in the Mexican market with regard to pricing strategies? How has the ranking of top OEMs, models, and most-in-demand segments mutated between 2012 and 2017?
  • What are the key external factors influencing vehicle pricing strategies and what are the key trends to account for in the forecast period 2017–2023?
  • What are the key growth opportunities and strategic imperatives for success in terms of competitive pricing strategies towards 2023?
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Ford
  • GM
  • Honda
  • Hyundai
  • KIA
  • Mazda
  • MORE

1. Executive Summary

  • Executive Summary-Key Findings
  • Factors Impacting Vehicle Price Structure Until 2023
  • OEM Comparison-Trim Level Price Positioning
  • OEM Comparison-Trim Level Price Positioning (continued)
  • Average Price of OEM Reference Fleet (Value-trim)
  • Vehicle Segment Comparison-Price Positioning
  • Average Increase in Vehicle Sales Price
  • 2017 OEM (Model) Price Position/Rank-Entry Trim
  • 2017 OEM (Model) Price Position/Rank-Premium Trim
  • Average Price Variation by Vehicle Model

2. Research Scope, Methodology, and Definitions

  • Research Scope
  • Research Scope (Reference Fleet)
  • Research Methodology
  • Study Definitions
  • Key Questions this Study will Answer

3. Key Factors Impacting Vehicle Price Structure-Current and 2022 Outlook

  • Factor 1-Mexican Macro-economic Context
  • Factor 2-Mexican Automotive Market Performance
  • Factor 2-Mexican Automotive Market Performance (continued)
  • Factor 3-Uncertainty on NAFTA’s Future and Fuel Price Liberalization
  • Factor 4-Taxation Structure
  • Factor 5-Vehicle Portfolios and Product Lifecycle Changes
  • Factor 6-Current and Future Regulations (EPA/Euro Emission Norms)
  • Factor 7-Impact of New Technological Landscape on Automotive
  • Factor 8-Vehicle Customization, Features, and Technology Packages
  • Factor 9-Vehicle Customization and Variants

4. Price Analysis by Vehicle Segment

  • Vehicle Segment Comparison-Price Positioning (A-segment)
  • Vehicle Segment Comparison-Trim Variations (A-segment)
  • Vehicle Segment Comparison-Price Variations (B Hatch-segment)
  • Vehicle Segment Comparison-Trim Variations (B Hatch-segment)
  • Vehicle Segment Comparison-Price Variations (B Sedan-segment)
  • Vehicle Segment Comparison-Trim Variations (B Sedan-segment)
  • Vehicle Segment Comparison-Price Variations (C-segment)
  • Vehicle Segment Comparison-Trim Variations (C-segment)
  • Vehicle Segment Comparison-Price Variations (D-segment)
  • Vehicle Segment Comparison-Trim Variations (D-segment)
  • Vehicle Segment Comparison-Price Variations (SUV B/C-segments)
  • Vehicle Segment Comparison-Trim Variations (SUV B/C-segments)
  • Vehicle Segment Comparison-Price Variations (SUV D-segment)
  • Vehicle Segment Comparison-Trim Variations (SUV D-segment)
  • Vehicle Segment Comparison-Price Variations (SUV E/F-segments)
  • Vehicle Segment Comparison-Trim Variations (SUV E/F-segments)
  • Vehicle Segment Comparison-Price Variations (Mini Pick-ups)
  • Vehicle Segment Comparison-Trim Variations (Mini Pick-ups)
  • Vehicle Segment Comparison-Price Variations (Mid-size Pick-ups)
  • Vehicle Segment Comparison-Trim Variations (Mid-size Pick-ups)
  • Vehicle Segment Comparison-Price Variations (Full-size Pick-ups)
  • Vehicle Segment Comparison-Trim Variations (Full-size Pick-ups)

5. Price Analysis by OEM

  • Nissan’s Vehicle Portfolio Price Positioning
  • YoY Variation in Nissan’s Value-trim Prices
  • GM’s Vehicle Portfolio Price Positioning
  • GM’s Vehicle Portfolio Price Positioning (continued)
  • YoY Variation in GM’s Value-trim Prices
  • Volkswagen’s Vehicle Portfolio Price Positioning
  • YoY Variation in Volkswagen Value-trim Prices
  • Toyota’s Vehicle Portfolio Price Positioning
  • YoY Variation in Toyota’s Value-trim Prices
  • FCA’s Vehicle Portfolio Price Positioning
  • YoY Variation in FCA’s Value-trim Prices
  • Honda’s Vehicle Portfolio Price Positioning
  • YoY Variation in Honda’s Value-trim Prices
  • KIA’s Vehicle Portfolio Price Positioning
  • YoY Variation in KIA’s Value-trim Prices
  • Ford’s Vehicle Portfolio Price Positioning
  • YoY Variation in Ford’s Value-trim Prices
  • Mazda’s Vehicle Portfolio Price Positioning
  • YoY Variation in Mazda’s Value-trim Prices
  • Hyundai’s Vehicle Portfolio Price Positioning
  • YoY Variation in Hyundai’s Value-trim Prices

6. Growth Opportunities (GO) and Strategic Imperatives

  • Growth Opportunity in Passenger Vehicle Pricing Strategies
  • Strategic Imperatives for Success and Growth

7. The Last Word

  • Key Conclusions and 2023 Outlook
  • Legal Disclaimer

8. Appendix

  • List of Exhibits
  • Abbreviations and Acronyms Used
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  • Ford
  • GM
  • Honda
  • Hyundai
  • KIA
  • Mazda
  • Nissan
  • Toyota
  • Volkswagen
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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