Global Automotive Export Resource Guide | Page 97

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Business opportunities exist for numerous technological innovations and applications, especially in high-tech sectors and innovations, addressing the variety of potentially disruptive trends & developments in the global automotive & transportation industry, as described above. A general openness for innovative suppliers is observed, especially due to a pressure for the OEMs to differentiate themselves from their competitors. Consequently, new technologies and business models are constantly developed, tested and integrated.

The German auto industry is highly sophisticated and competitive, with many OEMs and suppliers as world leaders in their respective segments. Access to Germany’s various automotive sub-sectors is challenging, as new-to-market (NTM) companies are often competing with locally established and globally operating suppliers. Successful market access strategies for NTM companies in most cases involves a local market presence. This is especially true for highly technical products, such as OEMs parts & components, but also for aftermarket products. U.S. companies seeking to win new customers and nominations from German OEMs or system suppliers have several options to establish a local presence. Strategies to enter the local market may involve below alternatives:

Strategic industry partnership with an established, local company: e.g. strategic Joint Venture and/or

distribution partner, system integrator etc.

Technical sales representative / business development agency with an established network of local

customers and contacts within the German & EU auto industry.

Official legal subsidiary: including marketing, (technical) sales & business development staff &

engineering support.

Because of continuously strict environmental regulation by the European Commission and its member states, automakers are under pressure to develop & bring to market vehicles that comply with current and future environmental requirements. In the aftermath of the emission scandal of 2015 (often also referred to as Dieselgate), Diesel registrations have been steadily declining and several OEMs and leading suppliers announced disinvestment in various traditional technologies, including the development of new generations of certain combustion engines types (e.g. Volkswagen, Volvo, Daimler) and related systems and components. While automakers today are significantly scaling up investment & development of alternative drive vehicles, emphasis currently on battery electric vehicles and hybrids, it is to be expected that traditional combustion engines will still be required & sold by automakers for some decades, but likely in decreasing volumes. In order to reach large scale deployment of EVs, several challenges must still be addressed including (a) the availability of affordable, sustainable and compelling EV models for consumers, (b) deployment of a comprehensive (public fast) charging infrastructure, as well as (c) a coordinated

best prospects