Motor Vehicle
...total annual sales revenue about US$1,000 billion, equivalent with GDP in 2006 of India or Brazil. The environment of the industry is strong global competition with principal players are General Motors, Toyota, DaimlerChrysler, Ford, Honda, Volkswagen, Nissan, Renault, Fiat, which counted for more than 90 percent of global revenue and production.
The global market of automobile is mostly drop in six segments:
- Three mature markets: North America, Japan, and Western Europe
In those markets, The United Stated is the world’s largest producer and consumer of motor vehicle with the production reached about 12 million units in 2006. The biggest producers are known as the big three which are GM, Ford, and DaimlerChrysler. However, the big three are losing market share to Japanese makers such as Toyota, Honda, and Nissan. In 1995, the big three held about 73 percent of market share, but at present, they are only operate in about 57 percent of total market share, a significant down in one decade.
- Three emerging market: Asia-Pacific, Eastern Europe, Latin America
The fastest growing markets are China and India. China was reported to growth 3% per annum in motor vehicles with the sales up to 4 million units in 2006. India also recorded the sales in automobile over 1 million for first time in 2004 and keeps going. The dramatic increasing in emerging markets is pulling the biggest players in the industry to focus on them. Adding by the very high competition in three mature markets and the power of population in China and India, all the makers are trying to take advantage in emerging market in order to gain profitability and market share in global.
In summarize, the industry is still being affected by strong competition factors. It is not only the competition among the makers themselves, but also the challenge of protecting environment forced by government,...
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