Automotive mainstream feeling the squeeze

As OEMs look to maintain or increase margins, they are broadening the range of specifications and model offering to reach new customers and market segments.

Europe’s car industry in particular sees the more premium brands such as Mercedes-Benz, BMW and Audi making smaller cars, and lower-end manufacturers such as Hyundai and Dacia trying to go premium. In effect, the region is experiencing a ‘squeezed middle phenomenon,’ causing struggles for many parties. This is felt particularly by the manufacturers stuck in the middle, which need to deal with premium and budget brands eating into the traditional mainstream.