...Analysis of Pakistani Automobile Industry Introduction The dictionary says that an automobile is a land vehicle equipped to carry a driver and several passengers, generally moving on four wheels and boosted by an engine that burns gasoline, and the companies that manufacture these automobiles are categorized under the automobile industry. So simple it seems. However, in the real substance, automobiles and the auto sector mean much more than this. It represents mobility, transportation and communication. It represents an industry that has a strong impact on a dozen other sectors like steel, vending, petrol or even employment. Hence auto sales reflect not only the basic human desire for mobility but these are also an important economic indicator. Historical overview of automobile industry of Pakistan When Pakistan was established in 1947, there were neither any automobile assembly plants nor any industrial capability available for this important manufacturing of cars, Light commercial vehicles, motorcycles, trucks and buses. In 1953 Pakistan produced its first vehicle in, the Bedford trucks, under the banner of National Motors, which went on to produce about 80% of the country’s automobiles in the 60’s. In Mid 1950’s Naya Daur Motors established the first ever plant to assemble trucks and buses. In 1983 Suzuki commenced assembly of FX 800cc. In 1986 Hinopak started assembling operations in 1986 and is the market leader in the commercial vehicles segment, currently possessing...
Words: 1782 - Pages: 8
...US AUTOMOBILE INDUSTRY ANALYSIS [pic] Written By: Jennifer Duhaney & Presented to: Professor Kurt Wurthman March 17th, 2011 MAN 4720 1. Industry Overview The US automobile industry has evolved over the years from steam engines, to internal combustion engines, to gas powered engines, and presently the newest innovations, alternative fuel engines, and electric cars. Henry Ford built the first car in 1896, (Gale, 2003). and then revolutionized the industry when he invented the assembly line.(David Highfill, Matt Baki, Sean Copus, Matt Green, Jennifer Smith, Matt Whineland). This invention allowed mass production which lowered the costs of automobiles for consumers. The industry includes a number of car manufacturers competing with each other in their competitive priorities, and competitive capabilities to capture market share. The major players in the industry are, the big three US automakers, Ford Motor Company, DaimlerChrysler, and General Motors. The major Japanese players who are also a part of the US auto industry are Toyota, Nissan and Honda. Ford, Chrysler and GM account for approximately 76% of US passenger Vehicles, Toyota, Nissan and Honda, Subaru and Mitsubishi account for 18%. The European automakers, BMW and Mercedes makeup nearly 2%. (Global Foresight, Inc. 2006 Report on Industry Trends). Over the years several mergers and acquisitions occurred within the industry and contributed to this global view. Some of the mergers and...
Words: 3605 - Pages: 15
...I. Introduction Automobile industry globally and in India is one of the key sector to economy. The well-developed Indian automotive industry produces a wide variety of vehicles, passenger cars, light medium and heavy commercial vehicle multi utility vehicles such as jeeps, scooters, motorcycle, mopeds, three wheelers, tractors and other agricultural equipment etc. India is emerging as one of the world’s fastest growing passenger car markets and second largest two-wheeler manufacturer. It is also home to the largest motorcycle manufacturer and the fifth largest commercial vehicle manufacturer. The industry currently accounts for almost 7% of the country’s GDP and employs about 19 Million people both directly and indirectly. It’s currently the seventh-largest producer in the world with an average annual production of 17.5 Million vehicles, of which 2.3 Million are exported. The Indian automobile market is estimated to become the 3rd largest in the world by 2016 and will account for more than 5% of global vehicle sales. It is the...
Words: 1412 - Pages: 6
...In this analysis, automobile market in Turkey will be evaluated in terms of the market structure. In the analysis, automobile producers which sell their products in Turkey (car brands in Turkey) will be taken into consideration. While making the analysis, the basic structural and behavioral assumptions of the market structures will be incorporated which are number of sellers, cost conditions, number of buyers, demand conditions, objective function, strategic variable, expectation of rivals’ reactions. Structural Assumptions: Number of Sellers: There are about more than 30 automobile companies operating in Turkey which are engaged in directly or indirectly (via distributors) selling automobiles in Turkey. Regarding the structural assumption of seller number, it can be concluded that there are few number of sellers in the market. The reason behind the few number of sellers is the substantial barriers to entry into the market, which is due to the high investment amount needed to start production. Cost Conditions: Given the scale of productions as constant, the companies face with diminishing returns which results in an increase in marginal costs in the short run. Number of buyers: Mentioned production companies generally sell the products to either individual consumers or to the distributors of the brands. That’s, it can obviously said that there are many buyers in the market. Demand conditions: In the market, there are different segments of cars that are sold...
Words: 687 - Pages: 3
...Chery Automobiles International Business Project Report 2014 Prepared by: Group 8, Section B Megha PGP17/093 Swati PGP17/117 Shreya PGP17/113 Umang PGP17/121 Ved PGP17/123 Contents Background of the company 3 Growth of the company 3 Chinese automotive industry 3 External Environment Analysis 4 Business Strategy 6 Internationalization 6 Competitive landscape 8 Chery automobile - During the recession 9 Chery automobile - After recession 10 Exhibits 11 References: 15 Background of the company Chery Automobile Co. Ltd is a government owned automobile manufacturing company in China founded in the year 1997.The product portfolio of Chery consists of 15 models which includes minivans, passenger cars and SUVs including the QQ compact, the A5 sedan, and V5 crossover. It also offers full electric and hybrid models. The exports of Chery account to 25% of its total production and it is the largest passenger car exporter since 2003. Chery has manufacturing facilities in China and their assembly operations are in around 15 countries. It has factories in Ukraine, Egypt, Uruguay, Syria, China, Iran, Indonesia, Malaysia, Thailand, Brazil, Taiwan, Venezuela, and Vietnam. Apart from that, Chery also focuses on new product development and its R&D expenses accounts to 7 % of total revenue. Growth of the company Due to certain quality issues faced by the auto exports from China, expansion plans of Chery have been challenged. Chinese products were...
Words: 3636 - Pages: 15
...become too complex mainly due to the increased globalization and therefore has to be understood thoroughly for the continuous operation of the business. This outline report explains the business environment of automobile industry in the People’s Republic of China in terms of political, legal, economic, and cultural and ethical traditions. Political 1. Encourage the Automobile Industry Development Policies Having struck by the world-wide financial crisis, the global automobile market currently is facing severe situations. In order to revive the automobile market, the State Department decides to reduce the vehicle purchase tax. This policy will play a major role in raising automobile consumption market while effectively encourage automobile purchase, expanding domestic demands as well as facilitating the steady and rapid development of domestic automobile industry. 2. China’s Road Construction Policy In order to maintain the automobile market to develop, the government enhances plans to provide priority to the construction of express highways and accelerating the construction of the National Express Highway. The ministry is also promoting the integration of unconnected roads. Legal 1. Legal provision relating to environmental population by automobiles and safety measures. 2. Intentions on harmonizing the regulatory standards with the rest of the world. Economic 1. Rapid Development of Economy The economy of the People’s Republic of China(PRC) is the...
Words: 704 - Pages: 3
...The automobile industry is growing rapidly with the introduction of newer technologies and car models. Latin America is quite a preferable location for auto manufacturers. Countries like Brazil, Argentina and Mexico are well known for manufacturing automobiles. As a Chinese automobile company who wants to set up their operation in Latin America, several major factors must be considered while selecting the country. Some of the factors which are considered when deciding on which country to invest are as follows: A. Infrastructure: Latin America lags behind in terms of infrastructure. This is a disadvantage for Latin America since it has a negative implication on its production and foreign direct investment. The proportion of paved roads in Latin America is comparatively low. i) Brazil: Brazil, the biggest economy in Latin America is ranked 104 in 2014 according to the “Global Competitiveness Report” by the World Economic Forum. This significantly increases the set up costs for new firms. ii) Argentina: Argentina lags even further behind Brazil in terms of infrastructure according to “Global Competitiveness Report” by the World Economic Forum published in 2014. This makes Argentina unsuitable for setting up new subsidiary. iii) Mexico: Mexico is ranked 73rd in the “Global Competitiveness Report” published in 2014, by the World Economic Forum. This shows Mexico is better in terms of infrastructure than Brazil and Argentina. Hence, Mexico will be the better choice...
Words: 761 - Pages: 4
...cost factors of an automobile manufactured are supplier component cost, in-house development cost, advertising cost and etc. The costs of automobiles sold to customer will be marketing cost, storage cost and etc. 3. To be able to reach the economies of scale, the production volume must be high. The automobile companies that have the major market share will have the advantage in economies scale. For example, they will incur less advertising cost compare to lower volume production’s company. 4. Japanese automobile industry has to consider the export automobile oversea when the domestic market matured in end of 1980s. All of the three markets are important to the Japanese automobile industry. The most important market will be Asia. The Asia market is growing. Yes. It is said `dumping` in the sense of selling the automobiles oversea is hardly profitable. But it is a must since the domestic market is mature and exporting oversea can cover parts of the fixed cost. It is also an act of Japanese automobile industry to test the oversea market with expected loss in mind. 5. Japanese automobile market is using the market segmentation of product differentiation. They offer different types of cars to satisfied the different needs of customers. The ways to differentiate are the level of luxury, size of car and etc. 6. No. The relationship between Japanese automobile assembler and components supplier is loosing over the years. It is hard for the automobile assembler to control...
Words: 323 - Pages: 2
...11/26/13 Tell me about yourself. - HR Interview Questions and Answers Search Arithmetic Aptitude Data Interpretation Logical Reasoning Verbal Reasoning Non Verbal Reasoning General Knowledge Sudoku Number puzzles Missing letters puzzles Logical puzzles Playing cards puzzles Clock puzzles C Programming C++ Programming C# Programming Java Programming Microbiology Biochemistry Biotechnology Biochemical Engineering Civil Engineering Mechanical Engineering Chemical Engineering Networking Database Questions Computer Science Basic Electronics Digital Electronics Electronic Devices Circuit Simulation Electrical Enigneering Engineering Mechanics Technical Drawing Placement Papers Group Disucssion HR Interview Technical Interview Body Language Aptitude Test Verbal Ability Test Verbal Reasoning Test Logical Reasoning Test C Programming Test Java Programming Test Data Interpretation Test General Knowledge Test Data Structures Operating Systems Networking DATABASE Database Basics SQL Server Basics SQL Server Advanced SQL Server 2008 JAVA Core Java Java Basics Advanced Java UNIX Unix File Management Unix Memory Management Unix Process Managemnt C Interview Questions The C Language Basics .NET Interview Questions .NET Framework ADO.NET ASP.NET Software Testing Home Aptitude Logical Reasoning Verbal Ability GK Puzzles Engineering Interview Online Test Tell me about yourself. @ : Home > HR Interview > HR Interview Room Improve English Speaking Le arn English Spe ak ing O nline to Im prove...
Words: 9067 - Pages: 37
...people believe the development of automobile brings us a better life, I believed the vehicle’s developing has greater disadvantages than the benefits. Central Purpose: People have been working on finding new energies to replace the traditional automobile fuels for years, which shows the cars developing, but pointed the problems of using cars as well. I am a reporter of this topic. The audience that I am facing to is the people who do care about the environmental problems, which caused by the over using of automobile. My audience should know about how does vehicle impact the whole society, advantages and disadvantages. Evidence my audience will find convincing would be popular magazines of Popular Science. The evidence would from scholarly sources, and magazines. The scholarly sources may more professional academic knowledge...
Words: 714 - Pages: 3
...trademark is an international recognized concept but in some overseas market there can be problems with the mark of a Corporation. The best way to overcome these matters can be through franchises with existing domestic Corporations. Telsa Motors, Inc. is an American multinational Company that manufactures designs and sells electric vehicles, components of power train and battery products. Telsa is a publicly traded Company that sells its stock on the NASDAQ stock exchange market under the symbol TSLA. Marc Tarpenning and Martin Eberhard started Tesla Motors way back in 2003 (Hettich and Stewens 3). Business has been average for Telsa Motors, Inc and it is only on 2013 when Telsa Motors posted their first profits since the year 2003. An analysis of Telsa Motors reveals that they have ventured into the Chinese market where it is expected that they face several challenges and influences from the business environment. Telsa Motors trades its shares on the NASDAQ stock exchange...
Words: 3588 - Pages: 15
...Bajaj Auto Ltd Situational Analysis: Indian economy has undergone tremendous changes during the 1980’s and 1990’s. The Indian industrial sector was protected from the international competition by the government of India during the 1980’s. During the 1990’s the economic crisis forced the Indian government to open up the Indian economy. With the opening of the Indian economy the competition for the industrial sector especially the automobile sector was severely hit. Now even the foreign brand automotives could compete in the domestic market without any tariff barriers or any other interventions. This meant that the local industries had to compete with the international brands without any kind of protection. Bajaj Auto Limited (BAL) found that its domestic market declined by 5% in the year 1991-1992. Bajaj had set a goal to protect its dominance in the Indian market and increase its exports to 15% of total sales by 1998. In the domestic market it was facing a stiff competition from Hero Honda and Kinetic Honda. The main problems of the BAL lied in its improper inventory management, higher average cycle time for launching a new product, not very advanced R&D facilities. To overcome these shortcomings the company did modernize itself but it was important for the company to sustain the tough competition. Problem Statement: It was necessary for the company to reinvent itself to sustain competition. The sales have been falling drastically and to make things worse its experience...
Words: 1046 - Pages: 5
...The automobile industry is a giant, serving both public and private sectors of the economy and consuming enumerable amounts of goods used in production, accounting for numerous additional jobs. The complexity of the industry has grown over the years along with the complexity of the products it produces. New means of advertising and other market strategies further complicate this already hugely intricate industry. On top of this, the industry continues to evolve on an almost yearly basis with the introduction of new “essential standard features” that one would not have even considered putting in a car five years earlier. Despite it’s relatively recent rapid growth in the past 100 years, the automobile industry, had a somewhat slower start. Once the industry was set in motion it unquestionably continued to grow and develop amazing machines that provide a great service to society and a great profit to its manufactures, but the first 130 years the automobile industry took to establish itself as an important part of the economy are just as important to fully understand the industry. The first self-propelled street vehicle was invented by the French engineer and mechanic, Nicolas Joseph Cugnot, in 1769. It was a military tractor used by the French army to haul artillery. It was destroyed later that same year in what is considered the first automobile accident; it crashed into a wall.2 The engine, like most of its time, was steam powered. Steam was the main source of power...
Words: 3109 - Pages: 13
...INTRODUCTION The popular saying that goes, 'no man is an island', does not only apply to humans but can also be attributed to the business world. In order to remain active and competitive, an organisation needs to take into account, not only internal processes but also look into consideration its external environment. Factors such as competitors,new rules and regulations,changing marketplace, changing workforce and other related factors that have direct impact on the existence of the business must be seen as a crucial factor to the organisation. A business environment encompasses those factors outside the normal business activities of an organisation but directly affects its decisions and is uncontrollable by the organisation. A change in consumer's taste will likely result in a shift in demand of a product such as fashion. IMPORTANCE OF BUSINESS ENVIRONMENT The importance of analysing an organisation's business environment cannot be more emphasized. Most businesses operate in an environment and whatever occurs in that environment also affect the business. The major importance can be seen in the following : 1. Detection of opportunities and threats: A business that is able to identify potential opportunities will normally have the upper hand as being the first mover and early detection of threats will act as a warning signal of dangers ahead. 2. Coping with changes: With huge changes occurring in the society, there is need for business managers to be aware of...
Words: 3632 - Pages: 15
...Nissan Pest Analysis PEST Analysis The PEST model aims to examine the external environment of Nissan, which in this case is the automobile industry. We will particularly expand on the political, economic, social and technological aspects. The political environment of the automobile industry encompasses government regulations such as corporate tax and international trade regulations. Worldwide, cars are subjected to corporate tax by the government of approximately 6%. For instance, in Mexico, it is 6.25% (Internal Revenue Service). If the government alters these taxes, it would directly affect the cost of Nissan’s vehicles and thus affect demand of those specific countries. Furthermore, governments impose international trade regulations on imports so to keep their deficit in control (imports – exports). Not all automobile companies have a manufacturing plant in the country they sell to. For example, the US government taxed the US customers with a ‘chicken tax’ of 25% on all Nissan vehicles before the manufacturing plants opened in Smyrna, Canton and Decherd. Even though Nissan has a wide dispersion of manufacturing plants: 36 in 19 countries, it sells its cars to a total of 123 countries. This clearly depicts that Nissan exports to a lot more countries than it manufactures in thus concluding that a change in foreign trade regulations will also along with corporate tax greatly impact Nissan’s demand and revenue. Moving on to the Economic aspect of the automobile industry...
Words: 325 - Pages: 2
