Main players of the Automobile industry are Toyota, General motors, Volkswagen, Honda, Ford and more. The Automobile Industry is very complex and to start a business in automobile industry high level of capital investment is required. Not only huge amount of money but also a labor force will be essential, which are the main barriers to enter into the automobile industry. For Example, the US auto industry was once considered safe until Honda Motors gave a big challenge to these companies by opening a manufacturing plant in Ohio. The Automobile industry includes many other industries as well for example, tires and seat manufacture.
2.2. Current Indian Automotive Industry A. Automotive Industry is growing at a rapid pace fairing among top ten in the world. Two wheeler in 2nd position; passenger cars in third position and commercial vehicles in 5th position. B. India has become a major hub for automobiles: i.
Porter 5 forces Analysis B&M group will enter the car service industry specifically car washing and will provide carwash services with wax. In the car wash industry B&M of course would have main competitors around our target market; Teamworx carwash and Mags & Wash. In order to compete with them we offer services that are competitive to the market. Threat of new entrants The threat of new entrants is high because there are a lot of opportunities in the village where we want to put up a carwash business also, the car users population in the village is big. It will be easy to put up a new carwash business there in the village if they have enough capital and a place to run the business.
The automotive industry is the largest single manufacturing sector in the world and thus consumes nearly 16% of the world’s steel, 30% aluminum, 5%plastic and significant proportions of other materials such as rubber, copper. Thus the problem of recycling of these is a significant challenge. The auto industry has to look for measures to facilitate production and procurement of raw materials such that the disposal of the products become environment friendly and less toxic. This would make their efforts towards sustainability stronger and the supply chain
Tyre industry growth that had registered an impressive 10.40% in 2007/08 declined to 2.40% in 2008/09. However, with the recovery in the economy, it is estimated that the Indian tyre industry will gain further momentum in subsequent years. Five tyre majors control nearly 80% of the Indian tyre industry. The truck and bus segments contribute almost 75% to its rupee value turnover. With India emerging as a global automotive hub, domestic tyre companies are expanding their operations and global tyre majors are increasing their presence in the Indian tyre market.
US auto industry is full of auto manufacturing companies, BMW Group, Chrysler/Dodge/Jeep, Ford Motors, General Motors, Honda/Acura, Hyundai/Kia, Mazda, Nissan, Subaru are the main competitors in US Auto market. For 2012 as a whole, automakers sold approximately 14.5 million vehicles in the U.S. Market, a 13 percent increase from 2011 and the highest annual sales total since 2007 marking the third consecutive year of annual sales increases of at least 10 percent. As fuel prices remain high and there is greater concern for the environment, more energy efficient cars are increasing in demand. Global automobile sales forecasts project divergent market penetration rates of approximately 0.6 -0.9% for plugin hybrid electric vehicles (PHEVs) by 2015,
These industries are expected to grow by 30-35% in the next few coming years. People in smaller towns have strong purchasing power to buy luxury vehicles tending the automotive industry to increase by 20-25% in the next few coming years. The industries/ products which the luxury market includes apparel and accessories, pens, home decor, watches, wines and spirits, jewelry, travel & tourism, fine dining and hotels, yachts, fine art, automobiles. It has been said that High Income Consumers spend more than 40% of their monthly income on the world’s most renowned luxury brands where as the Middle Income Consumers spend roughly around 8-10% of their income on luxury products. Consumers spending on luxury products around the globe have been rising tremendously which is expected to cross $40 trillion by
The automobile industry is one the aspects which becomes major factor in chines economy. Chinese car manufacturing is considered quit a Modern industry. It was started in 1980s by joining Chinese labor with the foreign companies to provide them with experience with car manufacturing. The first company enter China was Volkswagen in 1984 with production base in Shanghai. Volkswagen Take advantage of inexpensive labor and China established a new and profitable industry.
Rising Prominence in Hypermarkets and Supermarkets The Indian retail sector is going through a transformation and Indian emerging market is witnessing a significant change in its growth and investment pattern. Growing penetration of hypermarkets and supermarkets in India is playing a crucial role in creating awareness amongst the consumers. This growing awareness has inclined the consumers to look at glamorizing their kitchens with svelte and sleek gadgets that are cleverly woven into the cabinetry, yet are highly functional in nature. Whirlpool is offering its customers with European range of products that are well crafted in design, durable and are best in technology. Whirlpool is a market leader in Europe and import 90% of its product portfolio from the continent.
Changing way of life and customer gatherings: Changing customer way of life and more and more atomic families coming up who will require a car for their little family can come about into upsurge into car requests. Expansion of Market: Entering into new markets and further infiltrating into creating markets like India, China and so forth will help the company to build their incomes. Fortifying business vehicle business: Market volume anticipated that would be 29 million units before the finish of 2015. Expanding mindfulness and upsurge being used of open transportation will add to its consistent development rate regardless of whether its traveler cars business faces the log jam.