MGMT 3006 - Automotive Industry Analysis Project Report

This report provides an analysis of the automotive industry, focusing on its description, current size, and future prospects. The report begins by defining the automotive industry, detailing its products, services, and scope constraints, including geographical and sub-industry considerations. It then traces the evolution of the industry, highlighting key milestones and technological advancements. The core of the report examines the current industry size, presenting quantitative data on revenue, vehicle sales, and market growth over the past five years, with projections for the next two years. The analysis includes figures and graphs to illustrate trends and data. The report concludes by discussing the industry's potential, emphasizing the role of emerging markets and technological innovation. The report is based on reliable sources and adheres to APA format. The automotive industry is a dynamic and evolving sector that is experiencing substantial growth due to new technologies and increasing consumer demand. The report will be useful for students studying business development and strategic analysis.

Running head: AUTOMOTIVE INDUSTRY ANALYSIS
AUTOMOTIVE INDUSTRY ANALYSIS
Name of the Student
Name of the University
Author Note

1AUTOMOTIVE INDUSTRY ANALYSIS
Table of Contents
1.1. Industry Description................................................................................................2
2.2 Current Industry Size...............................................................................................3
References......................................................................................................................6

2AUTOMOTIVE INDUSTRY ANALYSIS
1.1. Industry Description
The industry chosen for this project is the automotive industry. This industry deals
with a number of companies that deals with the manufacturing, designing and developing
motors and its parts. The main products of the industry are any kind of motor vehicles. The
industry is considered to the largest revenue generating industry all over the world. The
manufacturing of the parts of motor vehicles also fall under this industry operations.
There are several constraints of this industries that are obvious because of the nature
of the business. The first thing is that, the automotive business needs a capital of big amount.
This could not be done with small amount of investment. As opined by Nieuwenhuis & Wells
(2015), another constraint is that the automotive industry need to build in a geographical
place that have all resources available for the manufacturing of automobile parts. Automobile
business need to have the assistance of a number of sub-industries like electronics, parts and
supplies, painting and coating technologies and passenger safety systems.
Figure 1 – Global vehicle sales
Source - Ihsmarkit.com. (2020)

3AUTOMOTIVE INDUSTRY ANALYSIS
The industry has become more automatic through the use of technological
interventions. The recent trends of automotive industries is to provide much technologically
loaded vehicles with maximum profit of the customer in their experience and money. The
idea of luxury cars have emerged with new definitions as well. Some of the most impressive
technologies are high tech headlamps, Electronically Controlled Torque Vectoring
Differential, the smart keys, Advanced Turbocharging, GM EV1, Radar-Based Cruise
Control, GPS Satellite Navigation and drivetrain advancement for fuel economy (Pervaiz et
al., 2016).
2.2 Current Industry Size
The automotive industry is the flourishing industry that has already n=been marked as
the industry that have the highest revenue numbers. The automobile company has generated
about 280 billion U.S. dollars revenue in the year 2018. Among the automobile manufactures,
the name of Volkswagen and Toyota has been placed at the top for their revenues. The
worldwide production of cars was 70 million in number in 2018. The estimated sales unit is
supposed to be 74 million by the year 2020. These number shows how the industry is
growing. The industry has seen ups and down in last five years, but the growth has n-been
enormous in last two years. According to the data of 2015, there was 0.4% change in the
production of the cars (statista.com, 2015).

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Figure 2 – Global vehicle market growth
Source - Ihsmarkit.com. (2020)
However, in the financial years 2016-17 this change in production are 2.36 positive
and 2018, the sales come down by 1.7%. All around the world there were 6,79,154 passenger
vehicles worldwide, where the number became 9,47,010 passenger cars by 2015
(statista.com, 2015). There is huge growth of the commercial vehicles sales as well. The
industry has the potential for future as well. The emerging markets of the automotive
industries buy more cars than the already established markets. The surges in the industry is
expected to go high for next few years with the invention of new technologies and increasing
demand of the customers. The recent year trends of the industry has made it the highest
revenue generator of many developed countries.

5AUTOMOTIVE INDUSTRY ANALYSIS
Figure 3 – Global automotive industry facts
Source - Statista.com (2015)

6AUTOMOTIVE INDUSTRY ANALYSIS
References
Ihsmarkit.com. (2020). Automotive: Light Vehicle Sales Forecasts | IHS Markit. Retrieved 15
February 2020, from https://ihsmarkit.com/products/automotive-light-vehicle-sales-
forecasts.html
Nieuwenhuis, P., & Wells, P. (Eds.). (2015). The global automotive industry. John Wiley &
Sons.
Pervaiz, M., Panthapulakkal, S., Sain, M., & Tjong, J. (2016). Emerging trends in automotive
lightweighting through novel composite materials. Materials sciences and
Applications, 7(01), 26.
Statista.com (2015), Number of passenger cars and commercial vehicles in use worldwide.
Retrieved from: https://www.statista.com/statistics/281134/number-of-vehicles-in-
use-worldwide/