The Global Automotive Industry

2551 Words6 Pages
bulb-icon

Recommended: Automotive industry globalization

Introduction

The number of multinational companies is on the rise due to changes in business dynamics, technology and increase in pressure on businesses to diversify their operations and make the most out of available opportunities. Numerous automobile industries have resulted as a consequence of technology change. There is a lot to talk about when it comes to technology and business diversities. However, despite technology changes, businesses still feel immense pressure to ensure that they redesign their operations so as to make the most out of the available opportunities. Management and marketing strategies have been as many as the Companies themselves. The paper explores the market in terms of performance objectives, key transformation processes used and Operations Management concepts/theories/techniques of FAW and Tata automobile Companies.

FAW Company

FAW limited is a large company based in China. The company was born in the late 19th century from a local car producer. The man on noticing how famous his rand was to the locals started commercializing it and with time new brands came to the rise. The Company was recently voted among the leading car manufacturers in China. FAW is a standalone company which solely develops its entire products (Maurer, 2009, p. 101). Though they are primarily concerned with production of heavy-duty trucks, custom bus chassis, automobiles, municipal as well as touring buses, mini-vehicles together with auto parts among others, the company does all the assembly of the most important components of the vehicles. It is poised that many citizens prefer bicycles to cars due to the population congestion conditions. The company also has a branch that produces motor bicycles. Within a period of a few years towards early 20th century before the First World War, FAW was the leading vehicle in the China (Gregory, 2007, p. 10). We tend to venture into new market and so the reason for this market plan. Owing to the persistent car technology in China due to the high population conditions, the company has had a great impact to the locals mainly due to the production of its most famous product (Besturn). It is due to this cultural affiliation that Besturn has become the most popular vehicle in China with its marketing growing overboard to the neighboring countries and various African markets.

Tata Company

Tata Group Company is an organization of firms that work together with an aim of facilitating community development in the Indian society.

Show More
Related

  • The U.S. Automobile Industry

    2538 Words  | 6 Pages

    The United States recession (which lead to a world recession), began in 1997 and significantly impacted the United States automobile industry during the recession period. The United States automobile industry is still reeling from the effects of the recession throughout the period of economic recovery that continues today. According to Chu and Su, “In this credit-driven recession, one of the hardest hit sectors was the automotive industry, along with the housing and financial markets. Chrysler and General Motors were pushed into bankruptcy; and 276,000 jobs in the automobile and parts industry were destroyed, a whopping 36 percent of the total employment in the sector”.

    Read More

  • Economic Overview In Auto Industry

    1580 Words  | 4 Pages

    The automotive industry is without a doubt an industry that has massive implications relating to the United States economy as well as affecting every American household. Shifts in the supply and demand of automobiles influence the current and future household purchases. Households must determine what amount of their hard-earned income to allocate to certain necessities. Because most households have a budget, the amount spent on transportation it limited. While most industries have an effect on the economy, the automotive industry has far-reaching implications for most Americans. Not only are the workers affected but the many spin-off jobs created as well as the consumers that must purchase the automobiles manufactured.

    Read More

  • A Very Brief History of the American Automotive Industry

    1487 Words  | 3 Pages

    Purchasing a car is one of the biggest and most important decisions that someone will make during their lifetime. Over the past several years, the prices of a vehicle have increased significantly due to the rise of inflation. Economists compare averages of vehicles to calculate and determine the cost of every vehicle that ends up on the car lot. To determine the cost they interpret all the above information and include everything from the cost of making the vehicle to the time of selling it. In the long run, the demand for vehicles is inelastic because they become a necessity for many people. However, in the short run, the demand is elastic because the purchase of a new vehicle can be put off for a while.

    Read More

  • The Automotive: The Electric Car Industry

    111 Words  | 1 Pages

    The Automotive, or electric car industry particularly, comprises all those companies and activities involved in the manufacture of electric motor vehicles (EV), including most components, such as engines, bodies and rechargeable batteries or another energy storage device. The industry’s principal products are passenger automobiles. Despite the fact that the first electric cars were produced in 1880s , the advances in internal combustion engines, especially the electric starter, soon diminished the relative advantages of the electric car and became the dominant design in the market. Due to this the EV was almost a forgotten industry staying in the early stage of development, conforming to less than 1% of the automotive stock

    Read More

  • The Automobile Industry: Growth Trends In The Automobile Industry

    516 Words  | 2 Pages

    The automobile sector has been a robust sector that has experienced tremendous growth in the past seven to eight years. Apart from two years in particular -2008-09 & 2012-13, there is general trend of ten percent plus growth in various segments like passenger car, commercial vehicles, two and three wheelers. The following chart shows the growth rate of various years in each sectors.

    Read More

  • American Auto Industry

    1599 Words  | 4 Pages

    The automotive sector is a major industry in America. The invention of the automobile in the late 1800’s revolutionized transportation. It wasn’t till Henry Ford in 1903 with his Ford Motor company, was the automobile made available to everyday Americans. Ford’s invention of the assembly line brought the automobile sector into a large industry in America’s economy. According to Veronica Franco of Market Research stated that in 2010 the auto industry had a global value of $728.3 billion. He projects that at the average growth rate of 24.1%, like what we saw from 2009 to 2010, by 2015 the value of the industry will be at $904 billion. So what does this mean for the future of this industry? It is going to continue growing. To see where the industry is going, one must look at the past, present, both the American and global sector, and the future projections.

    Read More

  • Tata Motors Case Study

    1712 Words  | 4 Pages

    The view from Tata motors perspective would be more central to seek out companies with more business plans and The company has a long term benefit like access to market knowledge and the development of firm presence on the new market and advantage would be that it limits the possibility of technology or knowledge transfer. Market commitment and Decision understand the requirement of a new market also the decision and implementation concerning foreign investment are made incrementally due to market uncertainty. The company have different approaches and implementation which are seen in the background and has different prior knowledge acquisition (Johanson & Vahlne,1977, p.34).Tata motors have understood that the arrangement was based on its acquired about the market and industry dynamics. Consequently the company had to have the commitment to allow constraint in the case of its freedom with the supplier and surrounded technology. Current activities is somewhat fascinating on how precisely the crucial of Tata motors are consistent with Uppsala theory and the result was Tata motors acquisition and in the longer terms is to move up in the value chain as much as possible, with the

    Read More

  • Foreign Competition in the Automobile Industry

    1195 Words  | 3 Pages

    In a capitalistic country with a free market, foreign competition is expected. This is no exception for the automobile industry where America competes with its various rivals. Competition from elsewhere encompasses that from Italy, Germany, and of course, the renowned Japan. The Japanese vehicle industry is especially competitive; according to the Automotive News Data Center, five out of the ten best selling vehicles of the year are Japanese vehicles. This data applies to the U.S. market over the first 9 months of the year. Expectedly, the automobile industry is an important and significant market. Motor vehicles are a major form of transportation as many people in the U.S. own at least one car.

    Read More

  • Outlook for the Automotive Industry

    1383 Words  | 3 Pages

    Throughout the world there are numerous automotive manufacturers. Appendix A is a list of 215 that can be found on the Wikipedia Website titled List of current automobile manufacturers (alphabetical). (List of current automobile manufacturers (alphabetical)) Due to the restricted amount of time available of information on manufacturers, and the restricted amount of time available for this paper, research was limited to only the manufacturers listed below for the majority of the industry outlook. [replace with company chosen] was chosen for an in depth review for this report.

    Read More

  • Automotive Industry Analysis

    794 Words  | 2 Pages

    The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).

    Read More

  • Internationalization Of General Motors

    2346 Words  | 5 Pages

    This paper examines the expansion of General Motors overseas in its various phases, as well as triggers for internationalization and the problems faced during the process. The paper also considers what benefits have been achieved through international growth, and how the company can be classified with regards to Bartlett and Ghosal’s 4 typologies. Finally, the paper discusses the concept of a “world car,” meeting the demands of customers across the globe.

    Read More

  • The Value Chain Analysis Of Volkswagen

    2030 Words  | 5 Pages

    Capacity is another thing that FAW-VW needs to enhance in China. “At present, FAW-Volkswagen has two large production base in Changchun, Chengdu separately. Vehicle production is mainly dependent on the base of Changchun capacity of 660,000 vehicles. Association statistics show that in 2010, FAW-Volkswagen sold 869,979 vehicles, the production capacity has been severely overloaded. Even with the Chengdu plant (450,000 vehicles) and the South China Sea plants (300,000) set up in 2013, capacity of FAW - Volkswagen is still behind its competitors (Joey Wang,

    Read More

  • Market Analysis: Four Different Types Of Market Structure

    1080 Words  | 3 Pages

    AutoEdge is facing crisis since millions of its automobiles has had to be recalled due to product quality issues. Many things should be considered in order to implement a proactive response to rectify the situation. As the research analysis, I have been tasked will helping to rebuild AutoEdge’s reputation as well as to reduce and control operating costs. When making any decision on implementing change within the organization market analysis must look at the market structure of the organization. Market structure is made up of the relationship that exists between buyers, sellers, competition, product differentiation, and ease of entry into and exit from the market. The article “Review of Market Structure” (n.d.) defines market structure as the “microeconomic characteristics of different markets” and include such elements as competition level, high versus low entry barriers, and scale (Review of Market Structure, n.d.) To make the decision the decision to relocate, AutoEdge must analysis and evaluate of market structure. This report will discuss the four different types of market structures: monopoly, oligopoly, monopolistic competition, and pure competition. Additionally, it will outline the type of market structure AutoEdge fits into, how that market structure impacts the level of competition, elasticity of demand, price, and position in the industry.

    Read More

  • The Alliance Between Honda And Rover

    2434 Words  | 5 Pages

    Honda, like other automotive companies, also came to the conclusion of firming a joint venture. At the moment, Honda was already famous for motorcycles in UK, but it was less well known in terms of the automobiles. While Honda’s cars enjoyed reputation for good quality and durability, the import restrictions limited its success it the European market. However, the European market was essential for the company’s global expansion. With the joint venture, Honda could avoid the restrictions on the import quota by assembling cars locally, because these cars would be considered locally produced. Moreover, a local partner could assumedly offer a better insight of the market.

    Read More

  • Economics of the Automobile Industry

    2412 Words  | 5 Pages

    A vehicle is one of the biggest purchases a person will ever make. Over the years, the prices of an automobile have increased due to the rise of inflation. Due to a price index, the price of an automobile changes over a certain period of time. Economists compare averages of automobiles to calculate the cost of each vehicle that presents itself on a car lot. When all of the above is calculated within the purchase of an automobile, it affects every area of making the automobile to selling the automobile. All of these factors are impacted together for the automobile industry as a whole.

    Read More

More about The Global Automotive Industry

Open Document