Auto Industry

Auto Industry

3.1. Industry Definition

The global automobiles industry group is separated into two parts that is auto components and automobiles industries. The automobiles industry is combined up from the light trucks, the passenger cars market, and the motorcycles market. The light trucks and the passenger car segment are valued at retailers selling price (RSP). The motorcycle market is saturated among on and off road motorcycles of all classes including mopeds and scooters, valued at RSP. The market volume is presented in terms of units sold in each year.

Auto component industry is also a portion of automobile industry converge from automobile parts and market of equipment including rubber and tires market. Automative equipment are considered to be automotive market globally for specifically light vehicles (Conybeare, 2003). It does not incorporate parts of original equipment for new cars and parts for heavy and medium vehicles. The rubber and tires market earn uo their revenue through the sale of both replaced and original equipment tires for trucks, cars, motorcycles, earthmoving equipment, bicycles, scoters, and aircrafts (Conybeare, 2003)

3.2. Industry Profile

Automobile Industry is considered to be e-business as well as local traditional business for producing and selling vehicles that are considered to be self-powered. The global auto industry is huge, with high sales and high competitive intensity. The auto industry has become of vital importance as purchaser of several industrial products, such as steel. With an implication of consumers to commute long distances for shopping, work and entertainment, the auto industry resulted into development of an extensive road system, made evitable the growth of shopping centers and suburbs around vital cities, and played a crucial role in the progress of ancillary industries, such as travel and oil businesses. Increasingly, automakers are working to develop a wide range of vehicles to appeal to every customer. ...