CHAPTER 1: INTRODUCTION
1.0 Introduction
The definition of “Car” is a four wheel engine motor vehicle used for transporting passengers and goods (Chew, 2012). The brand name PROTON is a truly made in Malaysia national car. The national car manufacturer, Proton Holding Bhd (PROTON) was one of the pioneer leadership in Malaysia automobile market which served the local and export market and it was once the top car sales until May 2011 (Chew, 2012). The automobile industry is one of the heavy industries which had contributed to the GDP of Malaysia and had benefited the economics of Malaysia (Chew, 2012).
1.1 The Development of Automobile Industry in Malaysia
Automobile industry in Malaysia first started with implementation of the Import Industrialization Strategy in 1960 when the Malaysian Automotive Association (MAA) was established in November 1960 (Rosli, 1994). During the early stage, Malaysia only carried out assembling activities of passenger and commercial vehicles. The main aim is to reduce the import of completely built-up units (CBU) in order to stabilize the balance of payment. Not only this, it also creates more job opportunities to reduce the unemployment rate.
In 1970, Malaysian government promoted the “Local Content Policy” due to improve the development of local and component industry in Malaysia. The government has played a vital role in establishing the contour of the Malaysian Automobile Industry in order to perform the National Economic Policy (NEP) in 1971. In early 1980, another phase in NEP was created by government to develop the car project (Proton) and steel plant (Perwaja). The investment tends to increased in these projects due to the higher import duties that imposed on both automobile and steel. In orde...
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... car demand in the market. Hence, the Proton producers will consider these factors during their planning and decision making in producing the cars. Apart from these, this research also helps the government to manage specific strategies toward automotive industry that related with Proton for the supply of the car industry in order to increase demand for Proton cars.
1.5 Scope of Research
Among the national cars manufactured in Malaysia, Perusahaan Otomobil Nasional Berhad (PROTON) was concentrated more in this research. This research is to cover the yearly data starting from year 1980 to 2012. Only the secondary data is involved in this research to discover the relationship between the factors of Proton demanded and total Proton registered in Malaysia. Meanwhile, the factors that influencing the demand for Proton will be taken into account in this study as well.
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Radhika Rathi 2015111 Varddhaman Jain 2015126 INTRODUCTION Automotive industry in Canada consists of primarily assembly plants of foreign automakers having their headquarters in US and Japan, along with hundreds of manufacturers of automotive parts and systems. The Canadian automotive industry is integrated into NAFTA (Canada, US, Mexico), globally competitive, and is the 8th largest in the world with positive trade balance, and also a major contributor
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The double log model is chosen as empirical model in this study due to its coefficient of variation is smaller than other models (Table 6.4 in Appendix). It is linear in the logarithm of dependent and independent variables. Therefore, double log model is employed through Ordinary Least Square (OLS) method for determining the elasticity of dependent variable and independent variables. The empirical model of demand for Proton car can be represented as follows:
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The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...
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This spells concern for the Proton brand as it no longer has any importance in the automotive industry. Enhanced innovation by its competitors like Naza Kia or Perodua has injured Proton’s brand. Instead, the reduced level of brand awareness has contributed to its declining sales in the automotive market.