With Elon Musk entering the fray with his Tesla electric motor vehicles, the industry which began in the 1860s with their new horseless carriages, has exploded to a figure of over 1 billion vehicles on the planet as of 2010. Both China and the US are counted amongst the leaders when it comes to global markets in terms of sales and production. Auto sales are projected to reach 81.6 million units by the end of 2018. In the US alone 6.3 million cars were sold in 2017, while the number of automobiles used within the nation has reached a staggering figure of 113 million cars. On a global scale the automotive industry reached the figure of $1.7 trillion as of 2015. Here is a small guide as to how the industry works and some forecasts for the future:
Impure Oligopoly of Manufactures
It is interesting to know that the current market structure of the industry resides under the banner of an impure oligopoly, with several players and major industry leaders taking the top spot when it comes to sales. The main global manufactures for the automotive industry include:
- Toyota (Japan)
- Volkswagen (Germany)
- General Motors (USA)
- Hyundai / Kia (Korea)
- Ford (USA)
Since the control of the market and its trends sit largely upon these aforementioned players, it is interesting to understand that buyers across the globe had always had little to say when it came to buyer’s leverage and power. The threats of new entrants is also relatively small, however with Elon Musk entering into the market with his latest and technologically advanced motor vehicles, there might be a change of the entire ecosystem that can be just around the corner.
Primary Mode of Transportation
The automotive industry plays a huge role across the planet as it is one of the most prominent amongst the other four industries (IT, Health, Finance, & Construction) that have stood strong against the test of time. For many developed countries, gasoline and diesel-fueled vehicles are considered as the primary mode of transportation. However growing trends show that younger generations are also looking for more preferable modes of transport as well. With the world consuming nearly 87.42 million barrels of fuel each day as of 2011 estimate, shows a clear picture of how widely used automotive products are at present times.
As time progressed the network of car dealers grew across the globe. In previous times when customers used to directly contact automakers to get their cars directly, whereas now a variety of channels are now available. Car dealerships and their emergence led to a new formation of a franchise where company-specific cars were sold. Nowadays our car dealers have enough space to accommodate for showrooms, body restoration services, and mechanical support compounds. Car dealers excel in the sales of used and new cars. Their dealings with the automaker are usually based on contract or a subsidized amount of the total sales made. Salespersons are involved in the workforce to sell cars, and some dealerships also provide spare parts, warranty claims, and technicians to help out in resolving your car’s issues.
While there are also other means of buying cars like CPO (Certified Pre-Owned), e-commerce websites, government-owned auctions, private sellers, and superstores, the bottom line for any customer is to get hold of trustworthy and honest services like Pure Ratings to help them out from sticky situations and ending up with a bad car and a bad arrangement.