Swot Analysis Automobile Industry

INDONESIA AUTOMOTIVE INDUSTRY

A. Background.

The automotive industry is to design, develop, manufacture, market, and sell motor vehicles world. The automotive industry is an attractive industry sub-sector to be studied in developing countries. The automotive sector may increase state revenues and is considered an important and strategic because it has certain advantages. First, the development of the automotive industry will increase national integration at a time of national sovereignty. Own production capabilities with components and local workers is a symbol of economic independence.

Second, the automotive industry to encourage the growth and development of supporting industries to move rapidly towards high technology and modernization.

In 2008 the contribution of the automotive industry reached 8.2% of gross domestic product which is the largest contributor to the category of the manufacturing industry reached 27.4%. That 's what puts the automotive industry as one of the three industries is expected to be the driver of growth of national industry and economy of Indonesia. Indonesia has also been factored into the market competition with the world automotive industry ranks 11th in the Global Automotive Market in 2008. Although still below India and Thailand but it was quite encouraging and can be used as motivation for the development of Indonesia 's automotive industry the next few years.

Assemble the car or make the car, although if we look from the side of the output is the same as "car". But there is a big difference between the two. Assemble is a process of combining several components into a product that has a specific function. Meanwhile, production / manufacture literally means a process to transform the raw materials into semi-finished materials or finished materials that have the functionality and useful for

The development of Indonesia 's automotive industry is currently experiencing a very good development. The number of enthusiasts in the automotive market began to rise, not only from the top class, but also began to creep into the middle class. This is due to many factors such as the unavailability of public transport that is comfortable and adequate, yet the program 's cheap car that had been arranged by the government.

Indonesia is a very potential market for the automotive industry. The future of the automotive industry was fairly sexy and very tempting cakes business. Indonesia 's economy will continue to grow given its population of 250 million, largely dominated by young people who are in the productive period. In addition to the large population and economy continue to grow positively, car ownership ratio in Indonesia is still small. Based on these opportunities Indonesia can be the center of ASEAN in the field of automotive future because the potential market is huge.

In the last seven years, between 2006-2013, the growth of car sales in Indonesia reached 23.4 percent. Until in 2012, history comes when reached 1 million units, 1.1 million units to be exact. That number is then increased again in 2013 because there were 1,229,901 units