China is one of the major car manufacturing countries nowadays and it only has a history for 50 years since 1953. After the country changed its foreign direct investment policy in 1981, a huge number of local firms started to emerge and even the foreign car manufacturers are attempting to do business in China. With this significant growth, it has become one of the biggest car markets in the world and it has been grow to a more mature industry in a very short time. China government has developed quite a number of new policies on giving the significant boost to the local car companies and to attract more foreign ... ... middle of paper ... ...ttractive market to venture since it has changed its policy to encourage more MNCs to enter its market. With the right international strategy executed by Volkswagen and the goal of achieving the status of becoming the leader of car market, China could prove beneficial and acts as a boost for Volkswagen in gaining those statuses.
Introduction: In today’s society, there has been a noticeable increase within the global trade industry, allowing business’ the opportunity to compete on a larger scale and have access to greater resources and technology. Over the past few decades China has become one of the largest automotive producers within the market and has the most growth potential worldwide as “car ownership is still remarkably low at 4.78% and is expected to grow significantly” (Huihui, 2012). The Chinese automobile market has started to recognise the importance of strong brand image and reputation. The Geely-Volvo acquisition has provided the Chinese car industry with the ability to expand abroad, gaining access into the international market therefore potentially creating a competitive edge. The acquisition is the biggest international merger taken place by a Chinese company and is intentioned to create a strong force for China as a world economic superpower (Wheelen & Hunger, 2006).
Most early automobile companies were small shops, hundreds of which each produced a few handmade cars, predominately sold to the rich. In America almost all of the producers were assemblers who put together components and parts that were manufactured by separate firms. The assembly technique also lent itself to an advantageous method of financing. It was possible to begin building motor vehicles with minimal investment of capital by buying parts on credit and selling the finished cars for cash; the cash sale from manufacturer to dealer has been integral in the marketing of motor vehicles in the United States ever since. The outstanding contribution of the automotive industry to technological advance was the introduction of full-scale mass production, a process combining precision, consistency, interchangeability, organization, and continuity.
Everything about the American culture has evolved from the transportation industry. Although automobiles may be linked to a rise in air pollution and other harmful effects to the environment, the consumer demand for cars continues to rise (Armi). The auto business in the US is a rather profitable market. Millions of dollars fund research to establish which aspects it is of a car that consumers care the most about. These factors, such as: size, color, design, and gas milage all impact the consumers willingness to purchase a car
In fact the increasing demand has sparked industrial development; provided job; and improved the infrastructure where the autos are manufactured (Kearney 2013). This push toward growing industries in India and China which produce practical and affordable compact cars will not limit sales only to those local regions. Instead, over time these new manufacturing centers will be exporting their products throughout the entire world. At which time the big three from Detroit will face stiffer completion in three geo-realms, first there in India and China, next throughout the developing Asian market and possibly world market and finally here at home in America potentially. Yes, soon not only will you see tiny Fiat
The products that we buy are an important part of our popular culture. The spread of Coca-Cola, Levi's, and McDonald's outside America symbolized the world's growing dependence and acceptance of America (Kelman). Now, America is no longer just the internationalizer, but also the internationalized(Kelman). Intense competition from Asian auto manufacturers for a piece of the U.S market has dramatically changed the way many cars are being built today. For one, cars are being built with higher quality and efficiency with more selections for cheaper prices from both U.S and Japanese car makers.
They have dominated the Chinese market since the early 1900s, and as of 2011 they were the number one automaker in the country. They have brand familiarity and brand loyalty from their consumers. They are still seen as an elite brand with an impeccable image of luxury and glamor, which definitely attracts the status-conscious Chinese consumers. They are ahead of the competitors because they are in tune with their costumers wants and produce cars that are relevant and appeal to them. If Buick continues with the same strategy they should stay ahead of the game.
Lowering costs is the main reason why these two firms have invested in India. The same has happened to many other industries in other areas not just the automotive, there are many reasons why India is so attractive to foreign industries, which it will be explained later in this text. The automobile industry in India has turned out to be a very lucrative market for foreign firms. This industry has witnessed impressive growth in the past two decades; it has modernized itself; it has come up with newer technology, as well as aligning itself to global developments. The automotive industry has significantly contributed to the overall industrial growth in India.
The automobile is one of the most important components of the American social, cultural and economic society. Millions of Americans own a vehicle because it is key to their transportation from point A to point B without having to depend on transportation schedules for buses or trains, or without having to depend on another person for a ride. Consequently, the ban on vehicles would change the basic structure of society completely. According to IHS Automotive in 2014 “the number of vehicles on the road reached a record level of almost 253 million, an increase of more than 3.7 million, or 1.5%” since 2013 (latimes.com). Cultures consist of the way of thinking, working and the beliefs that define a person, the vehicle is part of the material culture
- Bhattacharya, S. (2014). This has been also due to various manufacturers locally based which helped in the Indian Automotive achieve a position on a global rank and recognition globally as well. One of the major corporates to do so is Tata Motors. Their recent model the Nano launched in 2008 was launched with the perception of creating and manufacturing the worlds cheapest automobile and this was mainly due to the supply requirement by the vast amount of population being deprived of a motor vehicle. Originally a company for trucks and buses, Tata motors had entered the passenger vehicle segment in the 1998.