An introduction to the analysis of automobile industry

Jeffery automobile factory in Kenosha, Wisconsin, c. For many decades, the United States led the world in total automobile production. Inbefore the Great Depressionthe world had 32, automobiles in use, and the U. At that time the U.

An introduction to the analysis of automobile industry

The Internet Industry Similar to the invention of the airplane, the emergence of automobiles has had a profound effect on our everyday lives. The auto manufacturing industry is considered to be highly capital and labor intensive.

The major osts for producing and selling automobiles include: Labor - While machines and robots are playing a greater role in manufacturing vehicles, there are still substantial labor costs in designing and engineering automobiles.

An introduction to the analysis of automobile industry

Materials - Everything from steel, aluminum, dashboards, seats, tires, etc. Advertising - Each year automakers spend billions on print and broadcast advertising; furthermore, they spent large amounts of money on market research to anticipate consumer trends and preferences.

The auto market is thought to be made primarily of automakers, but auto parts makes up another lucrative sector of the market. The major areas of auto parts manufacturing are: Original Equipment Manufacturers OEMs - The big auto manufacturers do produce some of their own parts, but they can't produce every part and component that goes into a new vehicle.

Companies in this industry manufacture everything from door handles to seats. Replacement Parts Production and Distribution - These are the parts that are replaced after the purchase of a vehicle.

Air filters, oil filers and replacement lights are examples of products from this area of the sector. Rubber Fabrication - This includes everything from tires, hoses, belts, etc.

In the auto industry, a large proportion of revenue comes from selling automobiles. The parts market, however, is even more lucrative. Over and above the labor and material costs we mentioned above, there are other developments in the automobile industry that you must consider when analyzing an automobile company.

Globalizationthe tendency of world investment and businesses to move from national and domestic markets to a worldwide environment, is a huge factor affecting the auto market. More than ever, it is becoming easier for foreign automakers to enter the North American market.

To read more about this issue, see The Globalization Debate. Competition is the other factor that takes its toll on the auto industry; we will discuss this in more detail below under the Porter's 5 forces analysis Key Players In North America, the automobile production market is dominated by what's known as the Big Three: Chrysler - Chrysler, Jeep and Dodge.

Two of the largest foreign car manufacturers are: Traditionally, these are high-volume sales designated to come from large companies and government agencies. These sales are almost always at discount prices.

In the past several years, auto makers have been extending fleet sales to small businesses and other associations. Most auto makers experience increased sales during the second quarter April to Juneand sales tend to be sluggish between November and January.

For this reason, it is important to compare sales figures to the same period of the previous year. The adjustment factors are released each year by the U. Bureau of Economic Analysis. Many of the large auto makers release their preliminary sales figures from the previous month on a monthly basis.

This can give you an indication of the current trends in the industry.Introduction Of A Automobile Industry.

INTRODUCTION TO AUTOMOBILE INDUSTRY The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, towed vehicles, motorcycles and mopeds as defined in ISO , and is one of the world's most important economic sectors by revenue.

Automobiles changed the . Automobile Industry Introduction, Business and Industry Trends Analysis * I agree to receive emails containing information about services and offers from Plunkett Research, Ltd.

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PEST Analysis of Automobile Industry. Introduction [1] PEST analysis is a process of checking and analyzing information relating to the environment. The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business as a business measurement tool.

The industry responded by consolidating, resulting in just a few independent aircraft engine manufacturers and a more efficient supply market. The similarity to having many OEMs and suppliers producing virtually the same automobile transmissions is clear.

The automobile industry in India is world’s fourth largest, with the country currently being the world's 4th largest manufacturer of cars and 7th largest manufacturer of commercial vehicles in Indian automotive industry (including component manufacturing) is expected to reach Rs The automobile industry consists of multiple companies specialized in car manufacturing, as well as the ones involved in marketing and distribution of automobile products, such as cars, buses, vans, trucks, motorcycles, mopeds and motorized bicycles.

Automotive Industry Analysis - Cost & Trends