Development trend of automotive industry and the status of recruitment

Morgan McKinley July 17, 2017 4 mins read

I am now an associate consultant at Morgan McKinley, serving the automotive industry recruitment. The following discusses the development trend of the automotive industry and the status of recruitment.

Emerging developing markets, technology innovations, sustainability policies and changes in consumer preferences have all made huge differences in the global economy. Digitization, further automation, and new business models are changing the transportation of our daily lives. The automotive industry is no exception. These factors have led a disruptive trend in automotive industry; there are four major driven technologies: diversified travel, automatic driving, electrification, and intelligent interconnection.

According to McKinsey's recent analysis of trends in the automotive industry, the main findings are the following:

  • Driven by shared travel, Internet services, and performance upgrades, the auto industry's revenues will rise by 30%, or $1.5 trillion, as a result of the new business model.
  • While more and more people are switching to shared travel, car sales will continue to increase, but only at a slower rate of 2% per year.
  • Consumer travel behavior is changing. By 2030, one out of every ten cars sold is a shared car, and a travel solution based on user needs will have a bigger market.
  • The city type will replace the country or region, become the travel behavior, that is, the speed and scope of the car revolution market segmentation dimensions
  • Once technical and regulatory issues have been resolved, 15% of new cars sold in 2030 may be fully automated.
  • The feasibility of electric vehicles will promote competition; however the rate of acceptance in consumers can vary significantly depending on different regions.
  • In a more complex and diversified industry structure, the existing manufacturers will be forced to compete in many fields simultaneously and cooperate with their competitors.
  • The new market entrants will first focus on some profitable space segments and activities around the value chain, and then explore further areas.

It’s clear that new technology and multi-energy both play a significant role in today’s fast changing Auto-market. However, when it comes to recruitment, the effect does not only stop there, these developing trends have also deeply permeated into the culture, the scales, and the market.

Normally, in our career development, we should first clearly understand that there are three main equations of our daily work:

  • Passion + foolhardy = failure
  • Learning + thinking = growth
  • Thought + action = result

 

We have to frequently ask ourselves: What do need to do to stay on top? How can we do better in future? As “car-people” in the automobile industry, it’s been almost a hundred years from inheritance to revolution. Many companies and people have come and gone. How to blaze a road out of old economic model has become a difficult issue for both new and traditional automobile enterprises.

Firstly, small businesses generally use the institutionalized management. Managers and boss are generally personally involved in all aspects of the enterprise, and strictly control the enterprise's economic interests, performance benefits, personnel recruitment, and a series of enterprise operations. This kind of enterprise is generally not affected by the young employees who have just entered the job market. Employees are either more willing to go to large enterprises as they believe they can “hit the jackpot” or enter the lower level of the automobile industry and start their own small enterprises. This kind of enterprise is the most difficult group to recruit talent, because treatment is too low, experienced and skilled talents are not willing to stay in this kind of enterprise, though another kind of employees like apprentice or trainee is hard to meet the requirement of the working experience.

Secondly, most medium-sized enterprises tend to adopt the "environmental management" model. Compared with small businesses, medium-sized enterprises are more concerned about the internal feelings of employees, which can form a strong internal cohesion. Bosses often own some loyal full-time managers in medium-sized enterprises. Such enterprises are most favored by the automotive talent because the management style is more free than small businesses, and therefore future development prospects are broader.

Thirdly, for the successful transformation of development models of large enterprises are more inclined to pursue Internet plus car innovations. Large enterprises can create a better working environment, a deeper cultural heritage, and better rules and regulations. Such enterprises own mature medium-high level management and a sound promotion mechanism.

They penetrate all aspects of the industry, and sometimes even becomes the industry leader in the trend. Due to the larger staff structure, the hierarchal-style personnel allows for increasing mobility amongst the middle and lower level employees.

Thus, there is no right or wrong or even best choice, but a better way for different people in the auto-market to go to. Pinpoint your own value advantage and business needs, and then combine them with the development trends of the automotive industry. Only then do you develop a career plan that is line with your own characteristics. This strategy is not only limited to the automotive industry, but is applicable to many other industries.

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