Our client, LeadAuto, is the leading auto manufacturer in Asia. Their existing auto lines have experienced incredible growth over the past five years, but the market forecast calls for very slow growth over the next five years. As a result, LeadAuto has decided to focus on expanding its presence into the bus market, which has significant growth expectations over the next 5-10 years.
LeadAuto is considering two product configurations for new customers, which introduce a significant amount of ambiguity and complexity to all aspects of the business, including Sales, Operations, and Finance. In addition, the client is struggling to understand profitability per bus due to the number of option combinations offered to the customer. The client approached Deloitte to help evaluate whether to enter the bus market, potential profitability and optimization of the model mix, market profitability, and key actions required to prepare the organization and employees.