Industry Analysis & Industry Trends
The Motor Vehicle Manufacturing industry has endured a bumpy ride over the past five years. Consumer and business confidence plummeted during the economic downturn. As unemployment rose, households thought twice about buying cars, with many opting to repair their existing vehicles rather than replacing them altogether. Similarly, as business confidence fell, companies were reluctant to replace or expand their fleets. The government's scrappage scheme encouraged some new car sales, but it was not enough to offset the severe decline in demand. Export markets were also dismal as the financial crisis affected economies worldwide. Demand from the major export markets of the United States and Western Europe were especially affected... 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