Industry Analysis & Industry Trends
The Motor Vehicle Manufacturing industry endured a bumpy ride during the worst of the economic downturn, although industry conditions have since accelerated. Consumer and business confidence plummeted during the economic downturn, causing industry revenue to collapse in 2009-10. Conditions have since improved, with production rising significantly in 2010-11 and then continuing to grow strongly over the past five years. A number of manufacturers have had considerable success exporting cars to developing countries. For example, the industry's most dominant operator, Jaguar Land Rover, has grown at a remarkable rate over the past five years through the use of this strategy. Overall, the industry is expected to grow at a compound annual rate of 6.5%... purchase to read more
Industry Report - Starting a New Business Chapter
The most arduous barrier to entry for potential entrants is in the form of the high cost involved in building (or buying) a manufacturing plant. Plants are large due to high production volume and the production process requires highly technical and expensive machines. New entrants also face the task of accessing vehicle technology, complying with government regulations (especially environmental ones) and investing in research and development of new technology to keep up with the existing major players. A new player may have some difficulty doing so.
Having said that, these barriers have not stopped major international car companies from developing economies entering the industry... purchase to read more