Case Study On The Future Of The Automobile Industry

Q1. How is the global automobile industry evolving?
If we go back to the past and analysis the data we can see that the automobile industry is responsible for around 12 million job in Japan and USA which tells us the story behind how fast the industry is growing. The case also talk about the future of the auto mobile industry. According to the case study the current auto market is divided majorly in three category one of them is the premium category which is highest valued car and it has a 10 percentage of market share globally then the second one is known as value segment here we can find out the mid segment cars it has a roughly a market share around 70% and then come the least expensive vehicle which also has a market share of

If we see the current scenario the profit of 2012 is around 54 billion which is much higher than that of 2007 which is around 41 billion during the economic crises and it is also expected that in 2020 the profit will touch the figure around 80 billion . But the profit will not be same across all the country, some of the country will do well and some will not as we also see form the exhibit-1 is that the market scenario is also changing like in 2007 the BRIC and the row are accounted for only 30% of global profit where as in the year 2012 they are accounted for 60 % of the profit and these market segment are also outperformed the others like Europe Japan and south American countries . So we can say that cleary it is a vision of the changing scenario of the market segment and the market structure and form the exibit-1 it clear that china is counted for half of the growth around 50 percentage of profits that is 18 billion. Now if we shift our focus towards the Europe market they had a profit around 12 billion in the year 2007 but around 2012

So to match the safety standards the organisations need to change their technology and produce vehicles keeping in mind the future environment issue which keep rise to the cost and complexity and also less price is available for addition of new features. So this is one of the major challenge for the OEM's. Another challenge is diverging market, as the emerging has a growth around 50% in the year 2012 and it is excepted to grow around 60 by 2020 and it is also said that the profit in the market rise by 10% but if we see these market the existing production and supply facility will not match to the future sales expectation. Another major challenge face by the OEM's is rise of digital demand as the world is going digital every organisation is selling their products online so it is not far away that the cars also will be sale online it is good for the OEM's but it will add extra pressure to the existing dealer structure and the OEM's have to understand this and try to find out the way of making profit out of it. Last but not the least challenge face by OEM's is shifting the industry landscape as all the OEM's want to built and develop automotive power train technology the automotive supplier will also want to give more value added