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Why Built-to-Order models are the future in the automotive Industry

AS
By:
Ajit Shembekar, Domain & Consulting Head, Automotive
December 15, 2023 02:00 PM

Imagine going to a deli and seeing shelves stocked with hundreds of pre-made sandwiches in various combinations, then selecting and purchasing the sandwich combination closest to your taste and taking it home. That would sound strange indeed. And yet, that is exactly how we purchase cars today. To a large extent, the North American automotive industry follows a built-to-stock (BTS) model, where the car manufacturers build vehicles that dealers stock by the hundreds on their lots. Customer choice is a matter of perspective: Yes, a typical car dealer is presenting an array of models in various colors and trims. But the experience is a far cry from deli-style personalization.

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