CHAPTER 1: INTRODUCTION
1.0 Introduction
The definition of “Car” is a four wheel engine motor vehicle used for transporting passengers and goods (Chew, 2012). The brand name PROTON is a truly made in Malaysia national car. The national car manufacturer, Proton Holding Bhd (PROTON) was one of the pioneer leadership in Malaysia automobile market which served the local and export market and it was once the top car sales until May 2011 (Chew, 2012). The automobile industry is one of the heavy industries which had contributed to the GDP of Malaysia and had benefited the economics of Malaysia (Chew, 2012).
1.1 The Development of Automobile Industry in Malaysia
Automobile industry in Malaysia first started with implementation of the Import Industrialization Strategy in 1960 when the Malaysian Automotive Association (MAA) was established in November 1960 (Rosli, 1994). During the early stage, Malaysia only carried out assembling activities of passenger and commercial vehicles. The main aim is to reduce the import of completely built-up units (CBU) in order to stabilize the balance of payment. Not only this, it also creates more job opportunities to reduce the unemployment rate.
In 1970, Malaysian government promoted the “Local Content Policy” due to improve the development of local and component industry in Malaysia. The government has played a vital role in establishing the contour of the Malaysian Automobile Industry in order to perform the National Economic Policy (NEP) in 1971. In early 1980, another phase in NEP was created by government to develop the car project (Proton) and steel plant (Perwaja). The investment tends to increased in these projects due to the higher import duties that imposed on both automobile and steel. In orde...
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... car demand in the market. Hence, the Proton producers will consider these factors during their planning and decision making in producing the cars. Apart from these, this research also helps the government to manage specific strategies toward automotive industry that related with Proton for the supply of the car industry in order to increase demand for Proton cars.
1.5 Scope of Research
Among the national cars manufactured in Malaysia, Perusahaan Otomobil Nasional Berhad (PROTON) was concentrated more in this research. This research is to cover the yearly data starting from year 1980 to 2012. Only the secondary data is involved in this research to discover the relationship between the factors of Proton demanded and total Proton registered in Malaysia. Meanwhile, the factors that influencing the demand for Proton will be taken into account in this study as well.
The Automotive, or electric car industry particularly, comprises all those companies and activities involved in the manufacture of electric motor vehicles (EV), including most components, such as engines, bodies and rechargeable batteries or another energy storage device. The industry’s principal products are passenger automobiles. Despite the fact that the first electric cars were produced in 1880s , the advances in internal combustion engines, especially the electric starter, soon diminished the relative advantages of the electric car and became the dominant design in the market. Due to this the EV was almost a forgotten industry staying in the early stage of development, conforming to less than 1% of the automotive stock
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).
Automotive industry is rapidly growing. Approximately one in ten jobs in industrialized countries are the jobs related to automobile. For developing countries, they evaluate the condition of local automotive sector for grasping the economic growth opportunities because the auto sector has the wide linkages with the other sector of their economy (Encyclopedia, 1997). Then, this industry makes 60 million cars and trucks per year worldwide. Therefore, it can support jobs for 4 million people directly and many others are indirectly (Papatheodorou et al., 2007). Due to the above factors, the automotive industry was firstly selected to study. Specifically, Nissan Motor Co., Ltd was selected because it was sixth largest automobile company around the world in 2013 (Nissan, 2016).
Radhika Rathi 2015111 Varddhaman Jain 2015126 INTRODUCTION Automotive industry in Canada consists of primarily assembly plants of foreign automakers having their headquarters in US and Japan, along with hundreds of manufacturers of automotive parts and systems. The Canadian automotive industry is integrated into NAFTA (Canada, US, Mexico), globally competitive, and is the 8th largest in the world with positive trade balance, and also a major contributor
Relocating parts of company’s manufacturing plant from New Zealand to Malaysia would definitely have cost reducing effect on company’s manufacturing operations due to cheaper labour cost and plant. However, there are downsides to what seems like a utopia for manufacturers. This essay will cover some important market and non-market environments in Malaysia that would have an impact on firm’s manufacturing operations.
The automobile industry is a pillar of global economy. Globally automotive contributes roughly 3 % of all GDP output. It historically has contributed 3.0 – 3.5 % to the overall GDP in the US. The share is even higher in the emerging markets, with the rates in china and India at 7 % and rising. China produces the highest number of automobiles followed by US and Japan (oica.net, 2015). The industry supports direct employment of 9 million people to build 60 million vehicles and parts that go into them (oica.net, 2015). Many other industries such as steel, iron, glass, aluminium, textiles etc. are associated with the automotive industry and resulting in more than 50 million jobs owed to the auto
It all began in 1979, Malaysia’s Father of Modernisation, Tun Mahathir Mohamad, (then the Deputy Prime Minister of Malaysia), mooted the idea of establishing an automotive assembling and manufacturing industry in our country. It was Tun Mahathir’s dream to accelerate Malaysia’s industrialisation capabilities to match those of developed nations. His dream became one step closer to reality when the Cabinet approved the National Car Project in 1982.
As a result of the increased demand of cars, the competition among car companies is becoming intense. Although the market of car is the biggest growing market in the world, there are still some companies who make cars failing year after year. However, there are some outstanding car companies such as The BMW Group performing distinctly.
As Tata Motors is an automobile company, the raw materials required in production of a car or a vehicle include aluminium, copper, platinum, palladium, rhodium, steel and zinc. The prices for these materials have been increasing in the recent years. An increase in price of input materials could severely impact its profitability. Additionally, increases in fuel costs also pose a significant challenge to automobile manufacturers worldwide, especially in the commercial and premium vehicle segments where increased fuel prices have an impact on
This spells concern for the Proton brand as it no longer has any importance in the automotive industry. Enhanced innovation by its competitors like Naza Kia or Perodua has injured Proton’s brand. Instead, the reduced level of brand awareness has contributed to its declining sales in the automotive market.
Proton’s cars are being exported to 50 countries included United Kingdom and European markets. Proton realizes their goal of being an internationally successful Malaysian automotive manufacture. Our organization achieved it by focusing on the customers and also through producing innovative products with competitively
Since 2004 the automotive manufacturing industry in Australia has seen a steady decrease in the production volumes and profitability for manufacturers (Industry, June 2014 Automotive Update, 2014). Many governmental schemes have been introduced over time to increase efficiency and facilitate international competitiveness with varying degrees of success, however despite these attempts by the Australian government to increase and sustain international exports of automotive products, local firms still struggle against rising imports and increasing international competition. As a result of this, the three major Australian automotive manufacturers Toyota, Ford and Holden have announced plans to cease production in Australia by the end of 2017 (Ford plans to withdraw production in 2016, with Holden and Toyota ceasing manufacturing in 2017). A major factor
The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...