Automotive industry Essay

Submitted By liyamol77
Words: 455
Pages: 2

Automotive industry is a fast-paced industry with many advancements as far as its huge potential is concerned. Many multinational companies are involved in the industry. Tata motors and Aston Martin are the two giant companies with different types of vehicles. Tata motors

Tata motors is an Indian company owned by Tata group of companies. It is one of the major automotive manufacturing companies
Macro environmental Forces
Safety standards and Regulations: Safty standards and regulations of the country is one major macro environmental factor which affects automobile industry. These laws influence or limit the manufacturing capacity of the company.
Economic environment
Another external factor affecting automobile industry is the current economic environment. Growth of the industry is depended on consumers purchasing power and spending habits. People want to spend less and expecting more values. Therefore, it is necessary to cope with the expectation of consumers. However, this threat can be minimized by extending market offerings through dealers. For example, Ford has extended their range of cars to meet with price of every budget; however each car still delivers a good value. Moreover, Ford delivers customised products to meet with individuals expectations. Ford even offers consumers a build and price model, where the consumer can add or take away features and determine the type of car and its features based on their budgets (Sam,R,2012).
Natural Resources
Like any other industry the necessary natural resources as an input is essential for auto industry, and have direct impact too. For instance, the rising tensions in the Middle-East caused elevation in the price of crude oil, which caused impact on automobile industry. Besides the fact this is scary, it has completely altered the way cars are manufactured and built. Today all the car manufacturers…