Technology is reshaping the global automotive manufacturing industry. Certain vehicular features that could only be imagined have now become a reality. These technological companies provide a much required ground for companies to enter this industry. New opportunities have been provided to the automobile manufacturing companies. Technology has not only made the industry dynamic but also changed its entire landscape. Manufacturing sites are becoming more advanced, produces smart automobiles with utmost cost effectiveness and efficiency. According to the study, ‘Automotive Manufacturing Global Industry Guide 2013-2022’ the global automobile manufacturing industry includes the manufacturing of trucks, passenger cars and motorcycles. The trucks market is further divided into light commercial vehicles, heavy trucks and buses & coaches. Region wise, the market was led by Asian region followed by Europe and North America.
There are multiple trends that are driving this industry. Developed countries all around the world have a high penetration of vehicles whereas some fast paced economies such as India and China have quite lower number of cars per 1000 people. Thus, in the recent decade companies are trying to shift their focus from developed saturated markets to potentially high growth markets. The companies form conglomerates in developed countries and face a fragmented competition in the developing countries and hence companies in the developing markets tend to operate themselves with the objective of gaining maximum market share. Some of the major trends that will still continue hinder the automotive industry is increasing regulation especially because of rising environmental concerns and also due to rising problems of energy constraints. The future is set to hold tighter emission norms for manufacturing companies and simultaneously improving the efficiency of the vehicle to travel large distances with less amount of fuel. Due to these constraints many companies such as Tesla are trying to come up with electricity powered vehicles and gain the first mover advantage. Similar to other industries, companies that would be able to provide efficiency in their products, better design, innovation and distribution mechanism would be able to emerge as the market leader.
Some of the major companies in the global automotive manufacturing industry are Ford, Toyota, Daimler, Nissan, Renault, General Motors, Hyundai, Honda and Tata. These companies have acquired major share in the market due to cutting edge technology and improved efficiency, while Tesla is an automotive manufacturer that focuses on production electric vehicles. The Tesla Model S and Tesla Model X have become very popular primarily due to their design and extreme efficiency even though being electricity driven.
The growth in this automotive manufacturing shall be driven by many key drivers. These include rising population, rising disposable income and improving standard of living. New companies that are trying to enter this space shall have to face tough competition from the existing companies that have become huge corporations and some of them have been operating for the past century. The overall competition scenario is quite concentrated with only few companies operating at full capacity. The growth in this industry will be immense in the coming years which shall be complemented with enhanced technology.
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Ankur Gupta, Head Marketing & Communications