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Automotive Feasibility Study: 4 Steps to Validate Your Vision

Mathias Funder
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1 min reading time

Why do you need an automotive feasibility study? Until now, most steps we discussed within the vehicle development process have been about the acquisition of both the information and set pieces required upfront. Accordingly, the theoretical framework for realizing the vehicle is already established.

However, the question of whether the vehicle actually CAN be realized within all of limitations of the market, ecosystem, and personal wishes of the new entrant has yet to be answered.

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This is where the automotive feasibility study comes into play! But what is a feasibility study? How is it conducted? And what data is most important? The following article gives an overview regarding the most crucial steps of conducting a manufacturing feasibility study for an automotive project.

Feasibility Study: 4 Steps that Validate Your Vision as a Viable Endeavor

The Feasibility Stude: A Definitive Blueprint for Your Project

Usually conducted as a joint effort between the new entrant and their development and production partner, the feasibility study is the centerpiece of all previous preparatory work. It provides a decisive answer to whether the automotive vision in question is, from a technical as well as commercial perspective, a realistic endeavor.

As an objective measuring tool, the manufacturing feasibility study serves as a complete and definitive overview of all technical and commercial requirements within one concentrated document. The feasibility study is a vital prerequisite for reaching the first milestone of the vehicle development process.

Thus, it's important to start, execute, and conclude it before the concept phase is initiated. A automotive feasibility study benefits new entrants in many additional ways, since it also gives them a complete catalogue of all the tasks and risks of their product vision and serves as a guarantee for potential partners/investors, showing them that the project is worth the money and the potential risk of investment.

Conducting a feasibility study will take a few months to complete depending on the scale of your project and will require a substantial amount of money. In respect to the entire cost of developing a vehicle and the value of the study for the project, this a small but immensely expedient expense.

While a feasibility study encompasses a multitude of smaller and larger tasks, those can be generally clustered into 4 big steps:

Step 1: Confirming The Validity of Your Vision With a Feasibility Study

Before starting with the specific business fields of vehicle development, the product vision will be the first factor to be validated. This encompasses all questions regarding the target market of the vehicle, the ecosystem chosen to develop it in as well as the USP, technical specifications, features, and vehicle variants to be implemented. These will be specified once again and then organized and assessed within the greater development process.

Step 2: Defining Development Targets and Potential Conflicts in Your Feasibility Study

In general, there are five major fields to consider in the vehicle project:

  • development,
  • production,
  • the supply chain (also including the determination of key suppliers),
  • product distribution,
  • and after-sales management.

Strategies will be determined for these fields and then converted into product targets (objectives and deliverables based on the evaluation of benchmark vehicles) and technical programs (the measures planned in order to reach those objectives). By contrasting these two aspects with each other, potential risk factors and target conflicts can be discovered and solutions for said conflicts can be specified.

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Back to all Articles Mathias Funder

Mathias Funder is Senior Director Engineering & Sales at Magna Steyr. Funder joined Magna in 2009 and held several international positions as Program Manager, Technical Board Assistant and Director of Global Quotations Engineering. He holds a degree in International Business.

Guide for Entering a New Vehicle Market | Magna

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