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Trends In The Automobile Industry

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The automobile industry includes a huge number of manufacturers, companies involve in the process of research & development, designing, producing, testing, marketing, and trading of automobile. Globally, there were about 1015 million vehicles in 2016. The automobile plays an important role in transportation department for many countries around the world. This industry is one of biggest economic sectors in term of revenue.

Customer’s preference for automobile is vary from each city, each nation. Nowadays, it is such a diversity of vehicle on the global auto market now. Despite the globalization trend, in EU, Japan and North America markets, there are clearly distinctive preferences for automotive. The auto companies need to adjust their vehicles …show more content…

The main reasons for that are not only the differences in culture but also the differences in industry structure. The key difference between EU and the US industry structure is the infrastructure landscape. Cities, in EU, for example Paris, Rome are smaller in size. Street is also narrower and there are not enough parking spaces for large size vehicles. Therefore, smaller vehicles are so popular in EU and some small countries around the world. Moreover, Americans like traveling by the road trip more than Europeans, which is nearly 300 hours/year. There are also better public transportation systems and many other options for using car in EU. Therefore, the car-using rate in EU is way lower than North America. Another main reason need to be mentioned is the price of gas and diesel in EU. Due to the higher price of petroleum, Europeans often prefer to eco-friendly vehicles than big size vehicles with super strong …show more content…

Combining multi-domestic and global strategy is one of the popular developing strategies auto manufacturers applied to be successful in different countries. The manufacturers never provide the 100% similar car models in foreign markets. They also infrequently create new models from scratch. Normally, they manufacture only one platform for one model. Then, make some minor adjustments; add different technical features, and provide a list of options depend on the preference, and demand of customer from the countries they are approaching. In some markets, they might change quite differently the exterior, interior, paint color, quality of material, engine, and so on to meet the specific

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