Globalised Automobile Industry
The globalized automotive industry
Abstract This review was carried out to give an overview of the vast automotive industry. The automobile industry in the 21st century is filled with competition, innovations and new strategies (operational strategies, functional strategies, manufacturing strategies etc) which differentiate it from all other leading industries. The collaborations and joint ventures have played an important role in the development of the automobile industry which is further divided into two parts i.e.: (1) the production of parts, and (2) the final assembling. This research also shows how the recession has affected the automotive industry globally and its impact on the Indian automotive industry (the Maruti Suzuki case).
Keywords: automobile, automotive, recession, integration, globalization
Introduction and features The automotive industry is distinctive because of its extremely concentrated firm Structure: a small number of giant companies exert an extraordinary amount of power over smaller firms. Eleven lead firms from three countries, Japan, Germany and the USA, dominate production in the main markets. Global vehicle production has more than doubled since 1975, from 33 to nearly 73 million in 2007. The opening of new markets in China and India has helped to drive the pace of growth. Extremely concentrated firm structure in the industry creates high barriers to entry and limits the upgrading prospects for smaller firms. A new vehicle design typically requires more than 30,000 engineering hours, takes 3–5 years to complete and needs several billion dollars of up-front investment.
While seven countries accounted for about 80% of world production in 1975, 11 countries accounted for the same share in 2005.World vehicle production grew at an annual average rate of around 2% in the period 1975-1990, rising to around 3% in 1990-2010. Low rates of motorisation and huge
Abstract This review was carried out to give an overview of the vast automotive industry. The automobile industry in the 21st century is filled with competition, innovations and new strategies (operational strategies, functional strategies, manufacturing strategies etc) which differentiate it from all other leading industries. The collaborations and joint ventures have played an important role in the development of the automobile industry which is further divided into two parts i.e.: (1) the production of parts, and (2) the final assembling. This research also shows how the recession has affected the automotive industry globally and its impact on the Indian automotive industry (the Maruti Suzuki case).
Keywords: automobile, automotive, recession, integration, globalization
Introduction and features The automotive industry is distinctive because of its extremely concentrated firm Structure: a small number of giant companies exert an extraordinary amount of power over smaller firms. Eleven lead firms from three countries, Japan, Germany and the USA, dominate production in the main markets. Global vehicle production has more than doubled since 1975, from 33 to nearly 73 million in 2007. The opening of new markets in China and India has helped to drive the pace of growth. Extremely concentrated firm structure in the industry creates high barriers to entry and limits the upgrading prospects for smaller firms. A new vehicle design typically requires more than 30,000 engineering hours, takes 3–5 years to complete and needs several billion dollars of up-front investment.
While seven countries accounted for about 80% of world production in 1975, 11 countries accounted for the same share in 2005.World vehicle production grew at an annual average rate of around 2% in the period 1975-1990, rising to around 3% in 1990-2010. Low rates of motorisation and huge
References: * www.scribd.com/.../Globalization-of-Indian-Automobile-Industry-co * smspup.ac.in/imsj/april2009/imsj-april-2009-9.pdf * www.scribd.com/.../Economic-Recession-2008-2009-Impact-on-Indi * www.siliconindia.com/.../Recession_cripples_Indian_auto_industry-n... * www.markedbyteachers.com/.../fa-a-a-impact-on-au... - United Kingdom * www,motorbeam.com * www.wikipedia.com