Natalia Abragan, Author at MTM https://mtmision.cl/en/author/natalia-abragan/ Development and solutions that drive mobility in LATAM Wed, 29 Oct 2025 14:41:07 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.2 https://mtmision.cl/wp-content/uploads/2020/03/Favicon-MTM-512-150x150.png Natalia Abragan, Author at MTM https://mtmision.cl/en/author/natalia-abragan/ 32 32 What is OTA? The technology that redefines connected mobility https://mtmision.cl/en/what-is-ota-the-software-revolution-in-the-automotive-industry/ Tue, 28 Oct 2025 19:41:23 +0000 https://mtmision.cl/?p=7904 OTA updates are redefining automotive aftermarket and development. Discover how this technology is driving efficiency, safety and new business models.

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OTA updates - OTA updatesOver-The-Air- are the system that allows remotely update vehicle software, without physical intervention or a workshop visit. This technology represents a turning point in the automotive industry: vehicles are no longer static machines, they become digital platforms that evolve over the course of their life cycle.

For manufacturers, fleets and distributors, OTA is much more than a technical innovation. It is a new strategy for efficiency, safety and after-sales value, which redefines the relationship between hardware, software and service.

The new era of automotive software

The automobile is no longer a collection of mechanical parts, but rather a constantly evolving software platform. The infotainment, navigation, safety and advanced assistance systems (ADAS) are interconnected and rely on a flexible electronic architecture that allows for constant upgrades.

OTA updates make this evolution possible without the need for workshop visits or physical replacement of components. Through a secure wireless connection, the manufacturer can improve functions, fix bugs or add new capabilities directly from the cloud.

In technical terms, OTA allows:

  • Remote firmware and software update.

  • Reduced maintenance and recall costs.

  • Improving the driver's experience through new or adjusted functions.

  • The immediate application of cybersecurity patches.

According to McKinsey & Company (2023), the evolution towards software-defined vehicles -SDV- will completely transform the automotive value chain. In this new paradigm, the ability to remotely update and upgrade the vehicle will be a key competitive factor for manufacturers and their technology partners.

Impact on manufacturers and distributors

For manufacturers, OTA opens up a new horizon: it allows them to collect real-time data, optimize algorithms, detect faults and deploy functions without physical intervention.
For distributors, it involves new digital service models, such as predictive maintenance, remote customization and continuous upgrades.

The industry is moving towards business models based on software and after-sales subscriptions, where each vehicle becomes an active source of information and added value.

Challenges: safety and standardization

The flexibility of OTA also brings risks.
Systems must be designed with automotive cybersecurity protocols (ISO/SAE 21434), to ensure protection against vulnerabilities and malicious updates.
End-to-end encryption, software authentication and pre-validation are essential to maintain system integrity.

Trends towards 2030

The future of automotive software is defined by data.
According to McKinsey, The market for vehicle software and electronics will grow steadily through 2030, driven by centralized architectures that enable faster and more secure OTA updates.

Major global trends:

  • Telematics-cloud convergence: vehicle data is consolidated as a strategic asset.

  • Centralized I/O architectures: basis for massive OTA deployments.

  • Digital after-sales services: premium upgrades and subscriptions.

  • LATAM interoperability: adaptation to regional connectivity.

Strategic vision for LATAM

In Latin America, OTA adoption is progressively advancing as global manufacturers localize operations and strengthen their network of technology providers.
The focus is on improving connectivity infrastructure, professionalizing cybersecurity y creating integration alliances between OEMs and regional technology partners.

According to Deloitte, consumers in the region are increasingly embracing connected services and remote software updates.

Conclusion

OTA updates are no longer a promise: they are the invisible infrastructure that keeps the automotive ecosystem alive.
Their adoption drives operational efficiency, digital security and new revenue streams.
The challenge for manufacturers and distributors in LATAM will be to integrate them with a long-term strategic vision, The new system guarantees compatibility, robustness and a seamless experience.

If you want to know how to MTM can implement OTA solutions tailored to your production line or connected fleet., Contact us.

Frequently Asked Questions

What are OTA updates in vehicles?

These are processes that allow update vehicle software remotely and securely, without physical intervention or workshop visit.

 What benefits do you offer to manufacturers and distributors?

They reduce operating costs, enable the launch of new functions, improve cybersecurity and strengthen the after-sales relationship.

What challenges do they present?

The main ones are the cybersecurity, the cross-platform standardization and compatibility with different architectures.

How are OTAs implemented in Latin America?

Its implementation depends on the development of connectivity infrastructure and collaboration between manufacturers, distributors and technology partners.

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Sources

🔗 Source McKinsey - Getting ready for next-generation E/E architecture with zonal compute (2023)

🔗 Source Deloitte - Software-Defined Vehicle: Global manufacturer readiness (2024)

🔗 Source SAE - ISO/SAE 21434 Road Vehicles - Cybersecurity Engineering (datasheet)
🔗 SAE Technical Note - Publication of the Joint Standard (2021)

🔗 McKinsey - Mapping the automotive software and electronics landscape through 2030
🔗 McKinsey - The big shift: Moving commercial vehicle OEMs to centralized E/E and software (2024)
🔗 Capgemini - Connected Vehicle Trend Radar 2 + PDF (2024)

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]]> Automotive Equipment Trends 2024-2025 in LATAM https://mtmision.cl/en/trends-2024-2025-in-automotive-equipment-in-latam/ Wed, 03 Sep 2025 20:57:45 +0000 https://mtmision.cl/?p=6866 The Latin American automotive sector is moving rapidly towards electromobility, full digitalization and technological integration in processes and vehicles. Countries such as Chile, Uruguay, Bolivia, Mexico and Brazil are setting the pace with incentive policies, infrastructure development and modern industrial ecosystems. It is a key moment for manufacturers, distributors and B2B operators looking for efficiency, [...]

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The Latin American automotive sector is moving rapidly towards electromobility, full digitalization and technological integration in processes and vehicles. Countries such as Chile, Uruguay, Bolivia, Mexico and Brazil are setting the pace with incentive policies, infrastructure development and modern industrial ecosystems. It is a key moment for manufacturers, distributors and B2B operators seeking efficiency, innovation and competitive differentiation.

1. Electromobility: Real Traction and Measurable Growth

  • Accelerated growth: In 2024, sales of electric vehicles (EVs) and plug-in hybrids in LATAM grew by 28% over the previous year. Sustained growth of 25-30% per year is projected by 2025.
  • Bolivia: World leader in lithium reserves (24%), is moving forward with battery manufacturing projects.
  • Uruguay, Chile and Colombia: They apply subsidies and tax exemptions, allowing EV fleet growth of over 30% per year in some segments.
  • Infrastructure: The installation of charging stations is growing 18% year-on-year in the region, although technical standardization challenges hinder interoperability.
EV Charging Network Latin America 2024-2025

2. Advanced Electronics and Connectivity

  • Full digital integration:
    • OTA (Over-The-Air) upgrades, IoT and ADAS (driving assistance) systems already equip more than 60% of new B2B platforms in Brazil and Mexico.
    • Artificial intelligence (AI) personalizes the user experience, optimizes maintenance and reduces on-road incidents by an average 14%.

3. Digital Sales and After Sales: The Customer Decides 100% Online

  • Online sales: 65% of B2B buyers already opt for digital platforms to purchase or finance vehicles. Leaders in the region: Mercado Libre, Kavak and OLX Autos.
  • Digitalized after-sales: Predictive maintenance systems and workshop management platforms achieve:
    • 18% operating cost reduction.
    • Improved B2B customer service and satisfaction.

4. Customization and Accessories

  • Market growth: Interior fittings in LATAM reached USD 15.87 billion in 2024 (+5.2% annually). Brazil and Mexico account for more than 60% of this market.
  • Star products: Multimedia systems, wireless chargers, LED lighting, consoles and connected security solutions.
  • Demand: A 35% of fleet purchases include at least two factory-customized modular accessories.
Infographics Automotive Accessories

5. Nearshoring, Regulations and Investment

  • Nearshoring: Mexico and the Southern Cone (Argentina, Paraguay, Uruguay) increase their B2B automotive production by 22% annually, reducing integration times and logistics costs.
  • Incentives: Elimination of tariffs, tax deductions for EVs and technical homologation drive adoption, especially in Chile and Uruguay.
  • Challenges: Economic volatility and regulatory differences persist, restricting homogeneous expansion.

6. Overview by Country/Subregion

  • Accelerated growth: In 2024, sales of electric vehicles (EVs) and plug-in hybrids in LATAM grew by 28% over the previous year. Sustained growth of 25-30% per year is projected by 2025.
  • Bolivia: World leader in lithium reserves (24%), is moving forward with battery manufacturing projects.
  • Uruguay, Chile and Colombia: They apply subsidies and tax exemptions, allowing EV fleet growth of over 30% per year in some segments.
  • Infrastructure: The installation of charging stations is growing 18% year-on-year in the region, although technical standardization challenges hinder interoperability.
Digital-transformation

Challenges

  • Insufficient loading infrastructure and technical standardization.
  • Regulatory barriers that hinder regional homologation.
  • Lack of investment in technical training.
  • Resistance to change in workshops and after-sales processes.

Actionable Recommendations

  • Invest in infrastructure and public/private partnerships for EV charging.
  • Accelerate the digitalization and adoption of AI in sales and after-sales processes.
  • Promote technical training in ADAS, IoT and electrical.
  • Leverage incentives, dialogue with governments and standardize requirements.
  • Optimize the specialized regional supply chain via nearshoring.

The automotive industry in LATAM is undergoing a real and measurable transformation, based on innovation, digitalization and a long-term sustainable vision. At MTM Latam we have the experience, certified technology and human support to accompany you in this process.

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Sources

Market research:

  • Expert Market Research. Latin America Car Interior Accessories Market, 2024
  • Global Automotive Consumer Study 2024
  • Fortune Business Insights. Global Automotive Aftermarket, 2024

Sector organizations:

  • Electric Mobility in Latin America and the Caribbean, September 2024
  • Latam Mobility. Net Zero: Southern Cone 2024

Specialized media:

  • com - Automotive aftermarket trends
  • cl - Automotive Equipment 2025
  • Tecnom - Digitalization and automotive industry balance sheet
  • ai - AI in automotive sales LATAM
  • Infobae - Automotive industry outlook 2025

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]]> The New Automotive Consumer Profile: Customer Journey Data-Driven in LATAM (2025 - 2026) https://mtmision.cl/en/the-new-profile-of-the-automotive-consumer-customer-journey-data-driven-in-latam-2024-2025/ Wed, 03 Sep 2025 18:09:25 +0000 https://mtmision.cl/?p=6823 The automotive consumer in Latin America is undergoing a profound transformation: the digitization of the buying process, the influence of social media and customer value metrics are redefining the sector. Today, the automotive journey is a hybrid ecosystem-digital and physical-where the expectation of experience and personalization raises the bar for manufacturers, distributors and retailers alike.

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The automotive consumer in Latin America is undergoing a profound transformation: the digitization of the buying process, the influence of social media and customer value metrics are redefining the sector. Today, the automotive journey is a hybrid ecosystem-digital and physical-where the expectation of experience and personalization raises the bar for manufacturers, distributors and B2B operators.

1. Generational Radiography: Who buys and how?

Millennials:

  • 4 out of 10 car buyers in Mexico are millennials.
  • 95% always connected, research online before you buy.
  • 90% is ready to rebrand; they are looking for efficienciesExplore our blog and resources to stay ahead of the curve.
  • RELATED ARTICLES
  • cia, reputation and technology.

Gen Z:

  • They prefer subscription models and flexible mobility.
  • 48% learn about products through social networks and 74% follow influencers.
  • They consume ephemeral content, seek authenticity and dynamic responses.

2. An Omnichannel and Measurable Customer Journey

  • The 76% initiates the purchase online, although most still visit dealerships for the final decision.
  • 65% already concludes the purchase digitally-an example of how the online and offline process intertwines.
  • Every touchpoint matters: Google, YouTube, Instagram, WhatsApp and dealer portals are a must in the decision making process.
20250901_2040_Automotive Travel Infographic_simple_compose_01k43xtnzke54rcjhd573qjx8k

3. Metrics that Make a Difference

  • Lifetime Value (LTV): Include sales, services, accessories and repurchase: the future is in measuring and anticipating.
  • CAC: In LATAM, digital acquisition can cost between US$200 and US$800, but word of mouth remains the most cost-effective channel.
  • Service retention: Up to 75% in some well-managed aftermarket programs.
  • Upsell: Customization and data increase the ticket in 30-40%.

4. Social Networks: Decision and Experience

  • 61% of millennials and 60% of Gen Z have made impulse purchases over networks.
  • Instagram and Facebook lead purchasing processes, YouTube establishes authority for reviews and tutorial content.
  • Strategies vary: for millennials trust is essential, while for Gen Z authenticity and immediate interaction are essential.
20250901_2035_Generaciones Digitales Comparadas_simple_compose_01k43xjcxtegns1469jvwcnd38

5. Strategic Implications

  • Optimizing the journey requires investment in digital tools, AI and data-driven marketing.
  • Unifying data-CDP, CRM and social listening-powers relevant experiences and real engagement.
  • Mobile is already the main discovery and interaction platform for decision makers and end users.

6. What Product Managers, Aftermarket and Operators Look For

  • Fluid and scalable digital experiences, without losing personalization.
  • Suppliers that demonstrate technical authority, evidence and understanding of the LATAM context.
  • Social proof, references and educational materials: whitepapers, success stories and benchmarks to help in decision making.
20250902_1116_Automotive_challenges_and_opportunities_simple_compose_01k45fyqdmeqavyf5ayf113mmz

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]]> Profitability in Aftermarket LATAM: new business models and pricing strategies https://mtmision.cl/en/profitability-aftermarket-latam-pricing-business-models/ Tue, 19 Aug 2025 14:52:14 +0000 https://mtmision.cl/?p=4140 The automotive aftermarket in Latin America is going through a stage of accelerated evolution. Classic transactional models are giving way to service ecosystems.

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The automotive aftermarket in Latin America is going through a stage of accelerated evolution. Classic transactional models are giving way to ecosystems of recurring services, subscriptions and value-added generation. With a regional market growing in double digits and considerable margins in key categories, commercial managers now have the opportunity - and the challenge - to diversify revenues and maximize returns through dynamic pricing strategies, category mix and professional customer-centric propositions.

1. LATAM Aftermarket Panorama: Opportunity and Challenge

Market size and main drivers

  • Market value in Mexico: >USD 30 billion, growing at 10.45% annually.
  • Demand driven by aging vehicle fleet (average age 13 years in Mexico).
  • Nearshoring: 43% of B2B demand already comes from international operations and manufacturers.

Competitive changes

  • Explosion of e-commerce and platforms that replicate retail experiences for professional customers.
  • Vertical integration of OEMs and emergence of B2B subscription models.
  • Wholesale buyers expect full transparency, dynamic pricing and immediate availability.

 

2. Profitability Analysis by Category

Top categories and margins

  • Brake System: Margin 45-55%. High turnover and cross-selling opportunity.
  • Batteries: Margin 40-50%. boom in premium and EV.
  • Suspension: Margin 35-45%. High ticket and value for B2B installer.
  • Tires, filters, lubricants and electrical system: Margins from 25 to 50%, with high repurchase frequency.

Portfolio optimization

  • 80/20 strategy: 20% of inventory generates up to 80% of revenue.
  • Advanced planning by rotation/margin: seasonality prediction and inventory planning.
  • Essential KPI: ROI by category = Gross Margin × Turnover / Inventory Investment

 

20250902_1156_Infografía Márgenes Rentabilidad_simple_compose_01k45j8992f30tanqfrb5795k0

3. Subscription Models vs Traditional Sales

  • Maintenance-as-a-Service (MaaS): Plans from $50-$150 USD/month, better margin and retention than traditional model.
  • Parts-as-a-Service: Data-driven preventive deliveries, B2B customer loyalty.
  • Extended Warranties: Recurring revenues, margin above 60%.
  • Comparison: Average LTV subscription (5 years): $4,200 USD vs. transactional: $2,500 USD (3 years).

 

4. Value Added Services: Extended Warranties and Maintenance Plans

  • Extended warranty penetration: 15-25% LATAM (vs. 45-60% global), huge growth potential.
  • Recurring maintenance plans double the annual revenue per customer compared to the traditional model.
  • Tailored offer: basic, comprehensive packages and fleet solutions, with scalable rates and services.

5. Dynamic Pricing Based on Demand and Availability

  • Only 10% of the LATAM market uses dynamic pricing, opening up space for technology adopters.
  • Key variables: urgency, inventory, seasonality, customer profile and financing conditions.
  • Pricing intelligence platforms allow automatic adjustments (revenue up 8-15%; margin up 3-8%).

6. Technologies for the Next Generation Aftermarket

Advanced CRM and B2B sales

  • Micro segmentation, tailored pricing and automatic upsell/cross-sell recommendations.
  • KPI: 15-25% improvement in sales per executive after implementation of optimized CRM.

Professional E-commerce

  • Self-service, custom pricing, client ERP integration, CAC reduction up to 50%.
  • Expected digital revenue share: 40-60% in 2026.

AI/Machine Learning

  • Seasonal forecasting, inventory optimization, automated triggers and predictive holding.
20250902_1157_Comparison of Business Models_simple_compose_01k45jasqqqe0ftp5rxv2g3pt1d

7. Benchmarks and LATAM Cases

  • Mercado Libre Automotive: 35% CAGR growth, 68% buy repeat.
  • INA Mexico: Nearshoring + technology integration = 10,45% annual revenue growth.
  • Distributor Case: Digitalization achieved +35% in sales and +8 net points in margin.

8. Success Keys and Metrics for Managers

Strategic diversification

  • Primary streams: sale of parts, installation, premium delivery.
  • Secondary: warranties, maintenance contracts, training services.
  • Tertiary: data monetization, advertising revenue and financial services.
  • Metrics: gross margin >40%, digital channel share >50%, customer retention >80%.

9. Challenges and Recommendations

  • Technology integration and data management.
  • Training of the sales and operations team in new pricing models.
  • Professional customer education on underwriting benefits/value added.
  • Negotiation and flexibility in the face of price pressure and unfair competition.

Profitability in the LATAM aftermarket is being redefined with new business models, technology and strategies focused on the professional customer. The opportunity lies in adapting before the market, prioritizing categorical intelligence, diversified revenue and dynamic pricing models to scale margin and loyalty.

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Sources

Market research:

  • Fortune Business Insights. Global Automotive Aftermarket 2024-2032
  • GM Insights. E-commerce automotive aftermarket and dynamic pricing 2024-2032

Sectoral data:

  • Modern Machine Shop Mexico. Mexico auto parts industry - growth 10.45%
  • Automotive sector transformation - business profitability

Case studies:

  • Engine CX. Automotive CRM 2025: total profitability
  • Profitability analysis for spare parts stores (43% average margin)
  • Manage Easy. Operating costs of spare parts distributor

Technical sources:

  • Consumer Financial Protection Bureau. Extended warranties and service contracts
  • Margin analysis by aftermarket product category

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