The automotive industry is transforming as global automakers, including European and American, want to expand their footprint in Southeast Asia. Countries such as India, Malaysia, China, the Philippines, Australia, and Singapore are becoming hubs for R&D and innovation in the mobility sector. However, expanding into these markets comes with unique challenges, especially in light of geopolitical tensions and stringent regulatory requirements. Developing a robust go to market GTM strategy is essential to navigate these complexities and establish a strong presence in these growing markets.
Automakers encounter several challenges when entering the Southeast Asian market. Geopolitical tensions, including trade disputes and regulatory constraints, hinder the establishment of efficient supply chains and distribution networks. Global trade shifts, including U.S. tariffs, further complicate component sourcing, manufacturing partnerships, and disrupt existing supply chains. In response, American automakers face increased export duties from other regions, further exacerbating market entry obstacles. Additionally, global automotive manufacturers, especially European automakers, face increased competition from Chinese auto manufacturers while navigating increasingly stringent regulatory policies on emissions standards, safety protocols, and sustainability requirements. Non-compliance with these regulations can lead to heavy fines or market exclusion. The EU’s Green Deal and emissions targets pressure manufacturers to adapt quickly to meet evolving standards. For companies trying to introduce products into offshore markets, aligning with diverse regulatory landscapes becomes a growing challenge.
Successfully navigating these complexities requires a well-rounded go to market GTM strategy. Key steps to overcome these hurdles include conducting thorough market opportunity assessments to evaluate Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM). Identifying high-potential local partners and assessing regulatory landscapes are crucial for smooth market entry. Additionally, ensuring that the product fits local needs and demands is vital to establishing a strong market position. Understanding local customer preferences, regulatory developments, and emerging trends helps companies create a tailored go to market GTM strategy for market entry and long-term success.
Explore how our tailored go to market GTM strategy helped an automotive component manufacturer enter the Indian market. Also, this strategy led to a 30% revenue growth for our client.
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