Economic characteristics of the global motor vehicle industry.
The price for fuel and other growing concerns have shifted consumer’s preferences away from big pickup truck to more fuel-efficient cars. Some automakers embraced the change by expanding their small-car portfolios and diversifying into the production of hybrid electric motor vehicles. Other automakers were more reluctant to shift their focus from big to small cars, expecting the price of fuel to contract eventually, bringing consumers back to the big-car fold. When fuel prices did fall during the second half of 2008, it was due to the US financial crisis ripping through the global economy. The meltdown began when a debt binge overwhelmed many US consumers and businesses. This had a domino effect throughout the developed and emerging worlds, with many Western nations following the United States into recession. The Global Car and Automobile Manufacturing industry is deemed to have a low level of market share concentration. There are several major automotive companies across the globe, each with a significant share of the market, but concentration has been declining over the past five years as firms in emerging economies ramp up production a good example would be Tata in India.
Key Success Factors
The key factors that affect the global motor vehicle include: pricing pressure, consumer-spending trends, commodity price increases, and currency exchange rate volatility. Pricing pressure is a big part of the automotive business making cheap cars and making a profit is a hard thing to do. The consumer is a big part of the automobile industry, companies have to consistently keep track on what consumer are wanting and buying so they can fit the need of the consumer to gain advantages while sailing vehicles. It’s like the saying give the customer what they want. If able to that; Sales will raise. Commodity